HR Advisory for an Authorized Distributor of Industrial Machinery in China
A leading authorized distributor of Siemens industrial machinery in China was experiencing high staff turnover and declining team performance across four branches. Acadia redesigned the compensation and performance management framework, improving employee engagement and retention.
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Client
Established in 2003, the client is one of the largest authorized distributors of Siemens electric machinery products in China, with four branch offices in Shanghai, Wuxi, Wuhan, and Dezhou covering East and Central China.
Challenge
Rapid business expansion had outpaced the company’s HR infrastructure. Management was investing significant effort in people, yet the General Manager observed: “Our people show no passion in work and can’t meet requirements and targets.” Annual employee turnover was increasing.
The specific gaps identified:
- No formal job descriptions: employees and managers lacked clarity on roles, responsibilities, and performance expectations
- Compensation uncertainty: management could not assess whether salaries were competitive relative to the local market
- Retention risk: no structured mechanism to identify and reward top performers
- Sales team motivation: the incentive structure for the sales team was not driving the results the business needed
Solution
Acadia designed and delivered a compensation and performance management programme aligned with the client’s growth stage and sector.
Market benchmarking: We conducted a compensation benchmarking exercise across comparable industrial distribution companies in the relevant cities to establish where the client’s packages sat relative to market rates.
Job architecture: Acadia developed formal job descriptions for key roles, defining responsibilities, outputs, and competency requirements, providing the foundation for both performance reviews and structured pay bands.
Compensation redesign: The revised compensation framework was:
- Anchored to validated market data
- Differentiated by individual performance and contribution
- Structured to support internal equity and career progression
- Complemented by a variable pay component for the sales team tied to defined revenue targets
Performance management: We introduced a performance review cycle with clearly defined rating criteria, enabling managers to give consistent, evidence-based feedback and link pay decisions to outcomes.
Outcome
| Area | Result |
|---|---|
| Role clarity | Formal job descriptions implemented across all key functions |
| Market positioning | Compensation benchmarked and adjusted to target range |
| Retention | Measurable improvement in employee satisfaction and reduced turnover |
| Sales performance | Incentive structure realigned to revenue targets |
The project gave management a data-driven foundation to make better hiring, pay, and performance decisions, reducing reliance on ad hoc judgement and improving employee confidence in the company’s HR processes.
Facing similar HR challenges across multi-city China operations? Request a consultation to discuss compensation benchmarking, job architecture, and performance management.
Related services
- China HR & Payroll Services
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