Candidate
Case Study
China Human Capital Solutions
What You Are Expected To Do
Thank you for your application for Aon job opportunities!
Upon receiving this case material, Congratulations! You have got one step closer before joining Aon. In the next session, we hope you could be fully
prepared to make a wonderful case presentation showing us your quick learning, business sense, logic thinking, professionalism and passion.
Consider yourself as an Aon Consultant. You will make a presentation to client management team on behalf of Aon, and provide them your findings as
well as suggestions, including but not limited to
• Your understanding of Machinery Industry business trend and its impact on Company ABC
• Your findings of problems which ABC is facing and your suggestions on ABC HR Management such as organization, talent strategy,
workforce planning, reward and incentive, talent development etc. based on the quantitative and qualitative analysis from the information
collected and provided.
• Any other insights that can support your findings
Based on the case materials we provide, you are expected to make the analysis using PPT slides in English. Please submit your presentation materials
by email beforehand as requested and retain a copy with you when coming for the interview. Laptop and Projector will be prepared on site.
During the case interview, you will have about 20 minutes for presentation (Chinese or English) followed by a 10 minutes’ Q&A session.
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Background Information About Company ABC (1)
• Founder A has mastered a new technology which can increase the availability of discarded tires after drills from 40% to 85%. In 2019, he started the
company ABC (a Green-Tires factory) in Jiangyin City, and received capital investment from American company B, as well as support from the local
government C.
• In 2019, the company ABC developed steadily, with a sales revenue of 50 million RMB. In addition, with the support of American company B, the
company received many orders from the United States in 2020. However, with the changes of the relationship between US and China, the funds of
foreign shareholders have been delayed and orders have also lost due to the epidemic.
• The local government C introduced a new shareholder D to Company ABC by the end of 2020, to assure that the capital would not break.
*The shareholder structure of Company ABC is as below:
Founder A
Founder A Shareholding: 12%
Shareholding: 15%
USA Company B
Shareholding: 35%
Company Company
ABC USA Company B ABC
Shareholding: 45%
2019 2021
Local Government C
Shareholding: 30%
Local Government C
Shareholding: 40% Local Company D
Shareholding:23% 3
Organization Chart of Company ABCD
CEO
HR Deputy GM CMO Legal CFO
Supply Chain
Engineering & Sales External
Lab Quality Sales Marketing
Manufacturing Support Affairs
Finance
Testing
IT
* Red box represent the new department since ABC turned into ABCD. Admin
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Background Information about Company ABC (2)
• In 2021, company ABC launched a new business - turning waste tires into asphalt for road laying, which could support local infrastructure
projects greatly. Due to China’s strong support for green industries, the transformation of Company ABC not only received government support, but
also won a large number of orders.
• By the beginning of 2022, affected by the epidemic, the factory could not operate for more than two months, and orders were also affected,
leading impact to the company’s business.
Sales Revenue (Million RMB) Management / Employees’ Voice
2021 2022
45
40 CFO : Employees:
If we cannot make profits Can we still get bonuses
this year, we should consider when corporate profits
29 30 cutting costs decline?
25
18
16
CEO:
Shareholders: Does the company need to
Is it still worth my investment? adjust its business model? Is
there sufficient talent?
Q1 Q2 Q3 Q4
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Key Challenges Company ABCD proposed
As an external consultant, what suggestions would you provide for Company ABCD’s HR management to deal with the existing difficulties?
Tips: You can assume different business model of Company ABCD, and provide appropriate suggestions on HR management
• Company ABCD still continuous its current business, converting waste tires into asphalt for infrastructure construction
• Or company ABCD may resume its original regenerative tire business, and recover together with Auto Industry
• Or depending on its core technology, Company ABCD strives for innovation and seek new business model
• Or other scenarios of Company ABCD
Moreover, if you could provide enough reasons for your choice of scenarios, you may win extra points.
In addition to this slide material, you may complete the case by searching information or analyzing data from the attached excel.
• IPD (Individual Position Data) : This excel file includes the data for Company ABC’s employees
• Market Report: This is the industry compensation report with market salary data.
It’s open for you to make reasonable assumptions if you feel certain information is missing. Should you have any query, please don’t hesitate to contact us.
We are looking forward to working with excellent talents like you. Thank you!
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Appendix:
Pay Component Definition &
Machinery Industry Market Data
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Total Rewards Components Definition
Pay Component Definition
Base Salary Base monthly salary (excluding all allowances and bonuses) times 12.
Guaranteed Bonus Fixed Bonus(13th / 14th Month Salary ) + Festival Bonus
Cash Allowance The guaranteed cash paid to subside employees in meal, housing, transportation and aggregate allowance. Reimbursement is not included.
Actual Variable Pay The actual total amount of the variable bonus paid in the 12 months before the completion of the salary adjustment in this year.
Target Variable Pay The sum of the expected amount of variable bonus pay for the 12 months after the completion of the salary adjustment in this year.
Guaranteed Pay Base Salary + Guaranteed Bonus + Cash Allowance
Actual Total Cash Guaranteed Pay + Actual Variable Pay
Target Total Cash Guaranteed Pay + Target Variable Pay
Total Rem Annual Actual Total Cash + Company Benefits + Mandatory Benefits
Total Rem With LTI Annual Actual Total Cash + Company Benefits + Mandatory Benefits + Total Awarded LTI Value in Last Year
Market Salary Increase
Including Promotion Rate
Average 25%ile 50%ile 75%ile
6.2% 6.3% 6.0%
5.2% 5.2% 5.6% 5.5% 5.4% 5.5%
5.0% 4.9%
4.3%
2021 2022 2023 Projected
Excluding Promotion Rate - Avg
Office Worker
5.9% 5.6%
5.1% 5.4% 5.4% 5.3%
2021 2022 2023 Projected
Data Resource： 2021 – 2022 Machinery Industry Report
Market Turnover & Recruitment
Rank Turnover Reason Turnover Rate
24.5%
1 Career development opportunities are limited. 22.7%
18.0% 17.6% 2021
IN 15.3% 16.1%
2 Salaries lack external competitiveness. Headcount
Increase
3 Work-life imbalance.
4 Dissatisfaction with workplace or working environment.
5 Welfare programs are uncompetitive. 2021
OUT Turnover
-10.0%
6 Not satisfied with the job content. -13.7% -14.8%
-16.1% -15.8%
-19.3%
7 Lack of recognition.
8 Dissatisfaction with the management team.
Market Pay Mix
Sales Non-sales
32.0%
28.8%
26.3%
24.2% 24.7%
18.7% 19.3%
17.3% 16.5%
16.3%
Overall Professional and technical Supervisor / Senior Middle management Senior manager
personnel professional and technical
personnel
*Pay Mix = Target Variable Pay / Target Total Cash
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Thank You!
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