How do you create an objective compensation strategy based on HR data?

29.04.2025

During our most recent webinar, we took a closer look at Dstny, a fast-growing telecom company with more than 1,000 employees across Europe and the United States. Guest speakers Daan De Wever, CEO, and Yvonne De Ruiter, HR Manager, shared how Dstny has moved away from relying on intuition when making compensation decisions and instead links compensation to clear and objective data.

To achieve this, they use the People Model Canvas, a framework built around seven simple yet powerful questions (also known as the Q7 model).

Its simplicity is precisely what makes it so powerful. After all, how do you create a clear, fair, and widely supported view of your employees when, following multiple acquisitions, your organization operates with different job titles, HR systems, and local interpretations?

Spoiler alert: not by endlessly debating job descriptions. Instead, the key is to clearly define what you truly expect from a role—regardless of who currently occupies it.

The challenge: three marketing managers, three different realities

The trigger for Dstny was a familiar challenge faced by many growing international organizations, especially those expanding through acquisitions: how do you create a compensation strategy when job titles do not mean the same thing everywhere?

Daan explained how, at one point, they brought together three marketing managers—one from Belgium, one from France, and one from the Netherlands—to discuss the new compensation policy. And that’s where things became complicated. On paper, they all appeared to be at the same level, but in practice their roles were completely different:

  • One held a highly strategic role and worked on complex challenges.
  • Another had a primarily supportive, operational, and more administrative role.

What was missing? A common language. This is why Dstny started looking for a model that could describe and compare every role in a consistent way. Not based on job titles or intuition, but using concrete parameters (in other words: data). That search led them to the Q7 model.

The model: 7 questions that make the difference

The Q7 model used by Dstny is built around one simple idea: if you truly want to understand the contribution someone makes, you first need to understand what their role actually entails. Not the job title, but the expectation is the benchmark.

That is why the organization asks seven questions for each employee. These questions are always the same—whether you are an international scale-up or a local non-profit organization.

The starting point is the role, not the person. Managers are asked to complete the assessment intuitively, without overthinking it.

The seven questions focus on:

1. What are the roles and responsibilities of this position?

  • What is expected from this role (the benchmark)?
  • At what level is the role currently being performed?

2. What is the employee’s competency level relative to those expectations?

  • Is the employee still developing, fully autonomous, or even an inspiration to others?

3. What is the employee’s current performance level?

  • Are they achieving their objectives? Or is their output inconsistent?

4. Where does the employee sit within the talent-potential matrix?

  • Is there still growth potential? Or is this more of a stable performer?

5. How does the employee score on craftsmanship and values (vision & culture)?

  • Do they serve as a role model and inspire others? Or are they more of a “prima donna”?

6. How does the employee’s current salary compare to market value?

  • Is this person being compensated fairly based on objective data?

7. Is there a retention risk?

  • Consider turnover intentions or signs of disengagement within the next six months.

What does this approach deliver? A clear employee profile built on these standardized questions. The assessment is then validated by a small group of managers. In 90% of cases, the profile remains unchanged—although occasionally adjustments are made based on human judgment. This collective validation process creates both buy-in and objectivity.

The impact: from intuition to data-driven decisions

Once Dstny started applying the seven questions, things began to shift. Managers completed the model for their teams and quickly discovered how insightful the exercise was. One example stood out: a manager initially believed that an employee was “ready for the next step,” but after completing the assessment, it became clear that there were still several important development areas to address. The outcome immediately became the foundation for a constructive development conversation.

I thought I was already assessing this employee at the right level, but now I can clearly see where the opportunities for growth still lie.

This clarity also made it possible to make more informed policy decisions. When multiple managers independently arrive at the same assessment of a profile, the result is a highly validated view.

Based on this, organizations can link specific actions to the insights gained: feedback conversations, career development initiatives, or additional recognition and growth opportunities.

At Dstny, this led to insights such as:

  • 73 employees who had been in the same role for years but had not yet reached the expected performance level → Time for additional coaching or a reassessment of role fit.
  • 3 employees who, according to multiple managers, were already ready for a leadership role, even though they had not yet formally been appointed → An ideal internal talent pool for future leadership opportunities.
  • A gender pay gap that decreased from 10% to 3%, thanks to objective compensation decisions.

And it does not stop at talent reviews. Today, compensation and reward budgets at Dstny are also allocated based on validated data. Managers no longer make individual decisions about who should receive a salary increase. Instead, they provide input on performance and potential, after which the system objectively distributes the available budget.

Conclusion

By making HR decisions more objective, you not only gain greater control over compensation and talent development—you also create clarity, consistency, and trust. Employees understand where they stand, managers have a solid foundation for conducting fair and constructive conversations, and leaders can make decisions based on data rather than intuition.

The People Canvas Model brings structure to what often remains subjective and unclear. And that is what makes the difference between good intentions and focused action.

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