McKinsey&Company, Inc.
ESTABLISHING EFFECTIVE REMUNERATION ARRANGEMENTS
FOR RADIO TELEVISION HONG KONG CORPORATION
Final Report
The relaunch of Radio Television Hong Kong as a corporation (RTHKC) offers this newly corporatised entity an exciting opportunity as it builds on its predecessor's programming and production strengths to become a quality-driven, innovative public broadcaster. The study of RTHKC's organisation completed in 1990 – and titled "Relaunching Radio Television Hong Kong for Success as a Corporatised Entity"-- recommended a number of organisational changes required to make this vision a reality. In particular, it proposed the creation of TV and Radio divisions and supporting marketing and administrative departments to enhance management accountability and performance, as well as a better-focused and leaner line organisation.
In addition to restructuring its organisation, RTHKC will need to attract, motivate, and retain talented staff, taking advantage of its increased managerial freedom to operate in a more businesslike and entrepreneurial manner. To that end, RTHKC's remuneration
structure and policies must be competitive with market conditions while internally consistent, flexible, and relatively simple to administer.
With these objectives in mind, the Hong Kong Government asked McKinsey & Company to assist in (1) defining an effective job classification and remuneration structure
to apply across the whole of the new organisation, and (2) designing the specific compensation levels and packages to be offered to employees, with particular focus on
about 50 managerial, professional, and technical positions (thus covering more than 350 of RTHKC's 780 staff). In undertaking these efforts, the McKinsey team has worked in close consultation with RTHK management and members of the Recreation and Culture Branch, and has reported on a regular basis to an interdepartmental Steering Committee.
In summary, we recommend six initiatives to establish effective remuneration packages for RTHKC:
1
Adopt a skill-based job grading system to ensure internal consistency across
comparable positions