Compensation Current Trends Andmethodologies

822019 Compensation Current Trends Andmethodologies

httpslidepdfcomreaderfullcompensation-current-trends-andmethodologies 150

Copyright 2010 Irivne ConsultingGroup LLC 1

CompensationCurrent trends and methodologies

Seacoast Human Resource Association

011111

Bill Irvine MEd

Irvine Consulting Group LLC




Todayrsquos agenda

Compensation Trends

Aligning the Business Culture

Organizational PhilosophyCompensation Programs Overview

Developing Pay grades

Guidelines







4

Compensation Trends

Recognize the lifestyle and standard ofliving of multigenerational employees in a flexible cost effective and efficient manner




5

Compensation

Management1 Systematic application of judgment in the

domain of the concrete and the intangible

2 Process where by organizations arrange andstructure the pay and benefits provided toemployees




Dual SignificancePrinciple

Every job can be given a trivial description or a nobledescription




e ang ng ec veOrganization

Itrsquos a new economy Marvin Weisbord Productive Workplaces

Old (Early 20th Century)

Industrial Technical

People seen as spareparts

Narrow task simple skills

Hierarchical andAutocratic

Competitive

Slow to change

New (21st Century)

ServiceKnowledge

People seen asResourcesAssets

Multiple task broad skills

Flat and Participative Self directed work teams

Cooperative andCollaborative

Rapid change




PeoplePerformanceProductivity

Profit




Compensation Dimensions

Pay for work and performance

Pay for time not worked

Disability income continuance

Loss of job income continuance (unemployment) Deferred income (retirement)

Family income continuance (life)

Health and accident protection

Henderson R I







Aligning the business culture

Legal and Regulatory Requirements

Organizational Policies

Economic Factors

Organizational strategic partners




Culture eats Strategy forBreakfast

Ford Motor Co




FLSA- 1938

Requires

minimum wage

pay all hrs worked

pay overtime at 15

child laborcompliance

record keeping

Does not require

Vacsickholiday pay

premiums

pay raises

benefits




Common Wage-Hour Violations

Misclassify employeesas Exempt

Not compensating formeals and breaks

Not paying for time intraining

Not paying forcompensable traveltime

Not properly adminCompensatory time off

Not Compensating forldquounauthorizedrdquo

Overtime

Failing to roll certainbonuses into OT calc

Not paying for all timerecorded

Not maintainingaccurate records




Equal Pay Act of 1963

Prohibits unequal wages for equal jobs inwhich performance requires equal skilleffort and responsibility and when the jobs

are performed under similar workingconditions

Unless based on seniority system a meritsystem quantity or quality of productionor a differential based on factors otherthan sex




Lilly Ledbetter Fair pay act of 2009

Allows claims of pay discrimination forpay decisions years earlier

Will require employers to keep detailedrecords on Pay decisions in addition to paylevels

Will encourage employers to conduct a payequity study to defend potential liabilities




WHY HAVE A FORMAL PROCESS

Document Compliance

Control cost

Support Business strategy Attract and Retain

Equity

MotivateConsistency




Designing a Program

Lead or lag the industry

Pay for performance

Automatic step increasesCost of livingAcross the board

Ensuring internalexternal equity

Market driven




Quiz

Just kidding







Organizational Philosophy

Compensation programs viewed as

cost vs investment

value added to organization aligned with business plan




Compensation Strategy

Market Position

Job Value

Pay structure Rewards

Administration




Direct Compensation Programs

Base Pay Programs

Variable Pay Programs

Incentive Programs




The value of any reward

should exceed the cost




What do employees want

Appreciation and recognition of good work

Chance for growth

Feeling in on decisions

Good wages

Good working conditions

Help on personal problems

Interesting work

Job Security




Recognition

Is in addition to extrinsic compensationsystems

Intrinsic rewards

Can be as simple as a spontaneous comment

Can be formalized in a program

Recognition is the most powerfulworkplace motivator




Compensation Programs Overview

Alignment and Consistency are essential

Job Analysis

Position descriptions Job Evaluation

Pay grades




Job Analysis

Conduct a study on tasks dutiesresponsibilities and OrganizationalRelationships of position

Define what are the essential functions of the job

Identify what minimum skillseducation

are needed for applicant to beconsidered for the job




That which is Fairmay not necessarily be

Equal







Developing Pay Grades

A convenient grouping of a wide variety of jobs or classes similar in work

Provide a connecting link betweendescription and evaluation

Can be a single rate or a range

Creates a minimum and maximum valuefor the job = Range Spread

Henderson RI




Designing a Base Pay structure

Strategy - Develop a clear link between

Work required

Performance demonstrated

Pay provided

Internal and external data

Henderson RI




Pay structure

One or more grade structures

Overlapping grades

Establish the characteristics Number

Spread

Progression of grades

Compression

Comp-ratio

Henderson RI




Midpoint = $1000Spread = 50

Minimum = Midpoint (1 + (desired range spread)2 )

$1000(1+(05)2)

Minimum = $800

Maximum = Minimum x (1 + Spread)

8(1+05)Maximum = $1200

MinMax Formula

example




7 degrees of separationrule of thumb

Edward Hay (1940rsquos) tested Ernst

Weberrsquos law (1800rsquos) and found

15 (17) as discernable difference at least

75 of the time

Henderson RI




Grade Progression overlap

Relationship between adjoining grades




Pay Practices

Seniority

Rewards loyalty

Performance

Rewards results

Cost of living CPI

Rewards showing up

Across the Board

Maintains market competitiveness




Measures give rewards

relevanceRewards give measuresmeaning

Thom Wilson




Quality Work Life amp Pay systems

Pay for Knowledge

Pay for Skills

Pay for learning

Enhances team work




Action

Translate measures into




ldquoThe most successful reward

strategies encourage long termgoals and recognize the needfor balance between financial

operational and employeesatisfaction measuresrdquo

Thomas Haussmann Hay Group




Broadbanding

Concept created in the 90rsquos

Grouping of jobs of significant differencesor value within one band with 50 to 100percent spread

Reduces the number of grades within anorganization

Useful when teams are key

Henderson RI




Broadbanding Grade overlap

Fewer grades wider spreads

Henderson RI



Copyright 2010 Irivne Consulting

Group LLC 44

Comp-ratio

The relative ratio of an employeersquos salary

as it relates to the midpoint of theassigned grade

For example in a grade with 50 spread1 equals midpoint of grade 8 is minimumand 12 is maximum

Helps identify compression issues




Group LLC 45

Competency Based

Competency is a combination ofknowledge and skills required to performan assignment successfully

Problem solving

Knowledge

Decision making




Group LLC 46

Guidelines

Be consistent

Be transparent

Be predictable Be perceived as fair

Understand the expectations




Group LLC 47

Guidelines cont

Understand what matters

Honor your past

Educate your managers

Celebrate your successes

Customize for your organizational culture




Group LLC 48

Action steps

Recognize and appreciate individuals

Understand your organizations culture

Link rewards to performance

Mindful of cost control issues

Monitor Compliance issues

Periodically check the system for equityMaintain Competitive environment




Group LLC 49

Thank youand a final thought

Carve praise in stone

write criticism in sand




sources

Weisbord Marvin R Productive Workplaces Jossey-Bass Inc San Francisco 1987

Henderson RI Compensation Management in a knowledge-Based World PearsonPrentice Hall2006

Wilson Thom B Rewards that Drive High Performance AMACON New York 1999

httpwwwshrmorghrdisciplinescompensationarticlespagesbonusesarebackaspx




Todayrsquos agenda

Compensation Trends

Aligning the Business Culture

Organizational PhilosophyCompensation Programs Overview

Developing Pay grades

Guidelines







4

Compensation Trends





5

Compensation



















Competitive

Slow to change

New (21st Century)

ServiceKnowledge





Rapid change





Profit











Henderson R I










Economic Factors






Ford Motor Co




FLSA- 1938

Requires

minimum wage

pay all hrs worked

pay overtime at 15


record keeping

Does not require

Vacsickholiday pay

premiums

pay raises

benefits











Overtime






















Document Compliance

Control cost


Equity

MotivateConsistency




Designing a Program


Pay for performance



Market driven




Quiz

Just kidding









cost vs investment






Market Position

Job Value


Administration





Base Pay Programs


Incentive Programs











Chance for growth


Good wages



Interesting work

Job Security




Recognition


Intrinsic rewards









Job Analysis


Pay grades




Job Analysis









Equal












Henderson RI






Work required


Pay provided


Henderson RI




Pay structure


Overlapping grades


Spread


Compression

Comp-ratio

Henderson RI






$1000(1+(05)2)

Minimum = $800


8(1+05)Maximum = $1200

MinMax Formula

example








75 of the time

Henderson RI









Pay Practices

Seniority

Rewards loyalty

Performance

Rewards results

Cost of living CPI

Rewards showing up

Across the Board







Thom Wilson





Pay for Knowledge

Pay for Skills

Pay for learning

Enhances team work




Action












Broadbanding





Henderson RI






Henderson RI




Group LLC 44

Comp-ratio








Group LLC 45

Competency Based


Problem solving

Knowledge

Decision making




Group LLC 46

Guidelines

Be consistent

Be transparent






Group LLC 47

Guidelines cont


Honor your past







Group LLC 48

Action steps










Group LLC 49







sources











4

Compensation Trends





5

Compensation



















Competitive

Slow to change

New (21st Century)

ServiceKnowledge





Rapid change





Profit











Henderson R I










Economic Factors






Ford Motor Co




FLSA- 1938

Requires

minimum wage

pay all hrs worked

pay overtime at 15


record keeping

Does not require

Vacsickholiday pay

premiums

pay raises

benefits











Overtime






















Document Compliance

Control cost


Equity

MotivateConsistency




Designing a Program


Pay for performance



Market driven




Quiz

Just kidding









cost vs investment






Market Position

Job Value


Administration





Base Pay Programs


Incentive Programs











Chance for growth


Good wages



Interesting work

Job Security




Recognition


Intrinsic rewards









Job Analysis


Pay grades




Job Analysis









Equal












Henderson RI






Work required


Pay provided


Henderson RI




Pay structure


Overlapping grades


Spread


Compression

Comp-ratio

Henderson RI






$1000(1+(05)2)

Minimum = $800


8(1+05)Maximum = $1200

MinMax Formula

example








75 of the time

Henderson RI









Pay Practices

Seniority

Rewards loyalty

Performance

Rewards results

Cost of living CPI

Rewards showing up

Across the Board







Thom Wilson





Pay for Knowledge

Pay for Skills

Pay for learning

Enhances team work




Action












Broadbanding





Henderson RI






Henderson RI




Group LLC 44

Comp-ratio








Group LLC 45

Competency Based


Problem solving

Knowledge

Decision making




Group LLC 46

Guidelines

Be consistent

Be transparent






Group LLC 47

Guidelines cont


Honor your past







Group LLC 48

Action steps










Group LLC 49







sources








5

Compensation



















Competitive

Slow to change

New (21st Century)

ServiceKnowledge





Rapid change





Profit











Henderson R I










Economic Factors






Ford Motor Co




FLSA- 1938

Requires

minimum wage

pay all hrs worked

pay overtime at 15


record keeping

Does not require

Vacsickholiday pay

premiums

pay raises

benefits











Overtime






















Document Compliance

Control cost


Equity

MotivateConsistency




Designing a Program


Pay for performance



Market driven




Quiz

Just kidding









cost vs investment






Market Position

Job Value


Administration





Base Pay Programs


Incentive Programs











Chance for growth


Good wages



Interesting work

Job Security




Recognition


Intrinsic rewards









Job Analysis


Pay grades




Job Analysis









Equal












Henderson RI






Work required


Pay provided


Henderson RI




Pay structure


Overlapping grades


Spread


Compression

Comp-ratio

Henderson RI






$1000(1+(05)2)

Minimum = $800


8(1+05)Maximum = $1200

MinMax Formula

example








75 of the time

Henderson RI









Pay Practices

Seniority

Rewards loyalty

Performance

Rewards results

Cost of living CPI

Rewards showing up

Across the Board







Thom Wilson





Pay for Knowledge

Pay for Skills

Pay for learning

Enhances team work




Action












Broadbanding





Henderson RI






Henderson RI




Group LLC 44

Comp-ratio








Group LLC 45

Competency Based


Problem solving

Knowledge

Decision making




Group LLC 46

Guidelines

Be consistent

Be transparent






Group LLC 47

Guidelines cont


Honor your past







Group LLC 48

Action steps










Group LLC 49







sources




















Competitive

Slow to change

New (21st Century)

ServiceKnowledge





Rapid change





Profit











Henderson R I










Economic Factors






Ford Motor Co




FLSA- 1938

Requires

minimum wage

pay all hrs worked

pay overtime at 15


record keeping

Does not require

Vacsickholiday pay

premiums

pay raises

benefits











Overtime






















Document Compliance

Control cost


Equity

MotivateConsistency




Designing a Program


Pay for performance



Market driven




Quiz

Just kidding









cost vs investment






Market Position

Job Value


Administration





Base Pay Programs


Incentive Programs











Chance for growth


Good wages



Interesting work

Job Security




Recognition


Intrinsic rewards









Job Analysis


Pay grades




Job Analysis









Equal












Henderson RI






Work required


Pay provided


Henderson RI




Pay structure


Overlapping grades


Spread


Compression

Comp-ratio

Henderson RI






$1000(1+(05)2)

Minimum = $800


8(1+05)Maximum = $1200

MinMax Formula

example








75 of the time

Henderson RI









Pay Practices

Seniority

Rewards loyalty

Performance

Rewards results

Cost of living CPI

Rewards showing up

Across the Board







Thom Wilson





Pay for Knowledge

Pay for Skills

Pay for learning

Enhances team work




Action












Broadbanding





Henderson RI






Henderson RI




Group LLC 44

Comp-ratio








Group LLC 45

Competency Based


Problem solving

Knowledge

Decision making




Group LLC 46

Guidelines

Be consistent

Be transparent






Group LLC 47

Guidelines cont


Honor your past







Group LLC 48

Action steps










Group LLC 49







sources









Profit











Henderson R I










Economic Factors






Ford Motor Co




FLSA- 1938

Requires

minimum wage

pay all hrs worked

pay overtime at 15


record keeping

Does not require

Vacsickholiday pay

premiums

pay raises

benefits











Overtime






















Document Compliance

Control cost


Equity

MotivateConsistency




Designing a Program


Pay for performance



Market driven




Quiz

Just kidding









cost vs investment






Market Position

Job Value


Administration





Base Pay Programs


Incentive Programs











Chance for growth


Good wages



Interesting work

Job Security




Recognition


Intrinsic rewards









Job Analysis


Pay grades




Job Analysis









Equal












Henderson RI






Work required


Pay provided


Henderson RI




Pay structure


Overlapping grades


Spread


Compression

Comp-ratio

Henderson RI






$1000(1+(05)2)

Minimum = $800


8(1+05)Maximum = $1200

MinMax Formula

example








75 of the time

Henderson RI









Pay Practices

Seniority

Rewards loyalty

Performance

Rewards results

Cost of living CPI

Rewards showing up

Across the Board







Thom Wilson





Pay for Knowledge

Pay for Skills

Pay for learning

Enhances team work




Action












Broadbanding





Henderson RI






Henderson RI




Group LLC 44

Comp-ratio








Group LLC 45

Competency Based


Problem solving

Knowledge

Decision making




Group LLC 46

Guidelines

Be consistent

Be transparent






Group LLC 47

Guidelines cont


Honor your past







Group LLC 48

Action steps










Group LLC 49







sources















Henderson R I










Economic Factors






Ford Motor Co




FLSA- 1938

Requires

minimum wage

pay all hrs worked

pay overtime at 15


record keeping

Does not require

Vacsickholiday pay

premiums

pay raises

benefits











Overtime






















Document Compliance

Control cost


Equity

MotivateConsistency




Designing a Program


Pay for performance



Market driven




Quiz

Just kidding









cost vs investment






Market Position

Job Value


Administration





Base Pay Programs


Incentive Programs











Chance for growth


Good wages



Interesting work

Job Security




Recognition


Intrinsic rewards









Job Analysis


Pay grades




Job Analysis









Equal












Henderson RI






Work required


Pay provided


Henderson RI




Pay structure


Overlapping grades


Spread


Compression

Comp-ratio

Henderson RI






$1000(1+(05)2)

Minimum = $800


8(1+05)Maximum = $1200

MinMax Formula

example








75 of the time

Henderson RI









Pay Practices

Seniority

Rewards loyalty

Performance

Rewards results

Cost of living CPI

Rewards showing up

Across the Board







Thom Wilson





Pay for Knowledge

Pay for Skills

Pay for learning

Enhances team work




Action












Broadbanding





Henderson RI






Henderson RI




Group LLC 44

Comp-ratio








Group LLC 45

Competency Based


Problem solving

Knowledge

Decision making




Group LLC 46

Guidelines

Be consistent

Be transparent






Group LLC 47

Guidelines cont


Honor your past







Group LLC 48

Action steps










Group LLC 49







sources














Economic Factors






Ford Motor Co




FLSA- 1938

Requires

minimum wage

pay all hrs worked

pay overtime at 15


record keeping

Does not require

Vacsickholiday pay

premiums

pay raises

benefits











Overtime






















Document Compliance

Control cost


Equity

MotivateConsistency




Designing a Program


Pay for performance



Market driven




Quiz

Just kidding









cost vs investment






Market Position

Job Value


Administration





Base Pay Programs


Incentive Programs











Chance for growth


Good wages



Interesting work

Job Security




Recognition


Intrinsic rewards









Job Analysis


Pay grades




Job Analysis









Equal












Henderson RI






Work required


Pay provided


Henderson RI




Pay structure


Overlapping grades


Spread


Compression

Comp-ratio

Henderson RI






$1000(1+(05)2)

Minimum = $800


8(1+05)Maximum = $1200

MinMax Formula

example








75 of the time

Henderson RI









Pay Practices

Seniority

Rewards loyalty

Performance

Rewards results

Cost of living CPI

Rewards showing up

Across the Board







Thom Wilson





Pay for Knowledge

Pay for Skills

Pay for learning

Enhances team work




Action












Broadbanding





Henderson RI






Henderson RI




Group LLC 44

Comp-ratio








Group LLC 45

Competency Based


Problem solving

Knowledge

Decision making




Group LLC 46

Guidelines

Be consistent

Be transparent






Group LLC 47

Guidelines cont


Honor your past







Group LLC 48

Action steps










Group LLC 49







sources









Ford Motor Co




FLSA- 1938

Requires

minimum wage

pay all hrs worked

pay overtime at 15


record keeping

Does not require

Vacsickholiday pay

premiums

pay raises

benefits











Overtime






















Document Compliance

Control cost


Equity

MotivateConsistency




Designing a Program


Pay for performance



Market driven




Quiz

Just kidding









cost vs investment






Market Position

Job Value


Administration





Base Pay Programs


Incentive Programs











Chance for growth


Good wages



Interesting work

Job Security




Recognition


Intrinsic rewards









Job Analysis


Pay grades




Job Analysis









Equal












Henderson RI






Work required


Pay provided


Henderson RI




Pay structure


Overlapping grades


Spread


Compression

Comp-ratio

Henderson RI






$1000(1+(05)2)

Minimum = $800


8(1+05)Maximum = $1200

MinMax Formula

example








75 of the time

Henderson RI









Pay Practices

Seniority

Rewards loyalty

Performance

Rewards results

Cost of living CPI

Rewards showing up

Across the Board







Thom Wilson





Pay for Knowledge

Pay for Skills

Pay for learning

Enhances team work




Action












Broadbanding





Henderson RI






Henderson RI




Group LLC 44

Comp-ratio








Group LLC 45

Competency Based


Problem solving

Knowledge

Decision making




Group LLC 46

Guidelines

Be consistent

Be transparent






Group LLC 47

Guidelines cont


Honor your past







Group LLC 48

Action steps










Group LLC 49







sources








FLSA- 1938

Requires

minimum wage

pay all hrs worked

pay overtime at 15


record keeping

Does not require

Vacsickholiday pay

premiums

pay raises

benefits











Overtime






















Document Compliance

Control cost


Equity

MotivateConsistency




Designing a Program


Pay for performance



Market driven




Quiz

Just kidding









cost vs investment






Market Position

Job Value


Administration





Base Pay Programs


Incentive Programs











Chance for growth


Good wages



Interesting work

Job Security




Recognition


Intrinsic rewards









Job Analysis


Pay grades




Job Analysis









Equal












Henderson RI






Work required


Pay provided


Henderson RI




Pay structure


Overlapping grades


Spread


Compression

Comp-ratio

Henderson RI






$1000(1+(05)2)

Minimum = $800


8(1+05)Maximum = $1200

MinMax Formula

example








75 of the time

Henderson RI









Pay Practices

Seniority

Rewards loyalty

Performance

Rewards results

Cost of living CPI

Rewards showing up

Across the Board







Thom Wilson





Pay for Knowledge

Pay for Skills

Pay for learning

Enhances team work




Action












Broadbanding





Henderson RI






Henderson RI




Group LLC 44

Comp-ratio








Group LLC 45

Competency Based


Problem solving

Knowledge

Decision making




Group LLC 46

Guidelines

Be consistent

Be transparent






Group LLC 47

Guidelines cont


Honor your past







Group LLC 48

Action steps










Group LLC 49







sources















Overtime






















Document Compliance

Control cost


Equity

MotivateConsistency




Designing a Program


Pay for performance



Market driven




Quiz

Just kidding









cost vs investment






Market Position

Job Value


Administration





Base Pay Programs


Incentive Programs











Chance for growth


Good wages



Interesting work

Job Security




Recognition


Intrinsic rewards









Job Analysis


Pay grades




Job Analysis









Equal












Henderson RI






Work required


Pay provided


Henderson RI




Pay structure


Overlapping grades


Spread


Compression

Comp-ratio

Henderson RI






$1000(1+(05)2)

Minimum = $800


8(1+05)Maximum = $1200

MinMax Formula

example








75 of the time

Henderson RI









Pay Practices

Seniority

Rewards loyalty

Performance

Rewards results

Cost of living CPI

Rewards showing up

Across the Board







Thom Wilson





Pay for Knowledge

Pay for Skills

Pay for learning

Enhances team work




Action












Broadbanding





Henderson RI






Henderson RI




Group LLC 44

Comp-ratio








Group LLC 45

Competency Based


Problem solving

Knowledge

Decision making




Group LLC 46

Guidelines

Be consistent

Be transparent






Group LLC 47

Guidelines cont


Honor your past







Group LLC 48

Action steps










Group LLC 49







sources























Document Compliance

Control cost


Equity

MotivateConsistency




Designing a Program


Pay for performance



Market driven




Quiz

Just kidding









cost vs investment






Market Position

Job Value


Administration





Base Pay Programs


Incentive Programs











Chance for growth


Good wages



Interesting work

Job Security




Recognition


Intrinsic rewards









Job Analysis


Pay grades




Job Analysis









Equal












Henderson RI






Work required


Pay provided


Henderson RI




Pay structure


Overlapping grades


Spread


Compression

Comp-ratio

Henderson RI






$1000(1+(05)2)

Minimum = $800


8(1+05)Maximum = $1200

MinMax Formula

example








75 of the time

Henderson RI









Pay Practices

Seniority

Rewards loyalty

Performance

Rewards results

Cost of living CPI

Rewards showing up

Across the Board







Thom Wilson





Pay for Knowledge

Pay for Skills

Pay for learning

Enhances team work




Action












Broadbanding





Henderson RI






Henderson RI




Group LLC 44

Comp-ratio








Group LLC 45

Competency Based


Problem solving

Knowledge

Decision making




Group LLC 46

Guidelines

Be consistent

Be transparent






Group LLC 47

Guidelines cont


Honor your past







Group LLC 48

Action steps










Group LLC 49







sources








Designing a Program


Pay for performance



Market driven




Quiz

Just kidding









cost vs investment






Market Position

Job Value


Administration





Base Pay Programs


Incentive Programs











Chance for growth


Good wages



Interesting work

Job Security




Recognition


Intrinsic rewards









Job Analysis


Pay grades




Job Analysis









Equal












Henderson RI






Work required


Pay provided


Henderson RI




Pay structure


Overlapping grades


Spread


Compression

Comp-ratio

Henderson RI






$1000(1+(05)2)

Minimum = $800


8(1+05)Maximum = $1200

MinMax Formula

example








75 of the time

Henderson RI









Pay Practices

Seniority

Rewards loyalty

Performance

Rewards results

Cost of living CPI

Rewards showing up

Across the Board







Thom Wilson





Pay for Knowledge

Pay for Skills

Pay for learning

Enhances team work




Action












Broadbanding





Henderson RI






Henderson RI




Group LLC 44

Comp-ratio








Group LLC 45

Competency Based


Problem solving

Knowledge

Decision making




Group LLC 46

Guidelines

Be consistent

Be transparent






Group LLC 47

Guidelines cont


Honor your past







Group LLC 48

Action steps










Group LLC 49







sources








Quiz

Just kidding









cost vs investment






Market Position

Job Value


Administration





Base Pay Programs


Incentive Programs











Chance for growth


Good wages



Interesting work

Job Security




Recognition


Intrinsic rewards









Job Analysis


Pay grades




Job Analysis









Equal












Henderson RI






Work required


Pay provided


Henderson RI




Pay structure


Overlapping grades


Spread


Compression

Comp-ratio

Henderson RI






$1000(1+(05)2)

Minimum = $800


8(1+05)Maximum = $1200

MinMax Formula

example








75 of the time

Henderson RI









Pay Practices

Seniority

Rewards loyalty

Performance

Rewards results

Cost of living CPI

Rewards showing up

Across the Board







Thom Wilson





Pay for Knowledge

Pay for Skills

Pay for learning

Enhances team work




Action












Broadbanding





Henderson RI






Henderson RI




Group LLC 44

Comp-ratio








Group LLC 45

Competency Based


Problem solving

Knowledge

Decision making




Group LLC 46

Guidelines

Be consistent

Be transparent






Group LLC 47

Guidelines cont


Honor your past







Group LLC 48

Action steps










Group LLC 49







sources













cost vs investment






Market Position

Job Value


Administration





Base Pay Programs


Incentive Programs











Chance for growth


Good wages



Interesting work

Job Security




Recognition


Intrinsic rewards









Job Analysis


Pay grades




Job Analysis









Equal












Henderson RI






Work required


Pay provided


Henderson RI




Pay structure


Overlapping grades


Spread


Compression

Comp-ratio

Henderson RI






$1000(1+(05)2)

Minimum = $800


8(1+05)Maximum = $1200

MinMax Formula

example








75 of the time

Henderson RI









Pay Practices

Seniority

Rewards loyalty

Performance

Rewards results

Cost of living CPI

Rewards showing up

Across the Board







Thom Wilson





Pay for Knowledge

Pay for Skills

Pay for learning

Enhances team work




Action












Broadbanding





Henderson RI






Henderson RI




Group LLC 44

Comp-ratio








Group LLC 45

Competency Based


Problem solving

Knowledge

Decision making




Group LLC 46

Guidelines

Be consistent

Be transparent






Group LLC 47

Guidelines cont


Honor your past







Group LLC 48

Action steps










Group LLC 49







sources









Market Position

Job Value


Administration





Base Pay Programs


Incentive Programs











Chance for growth


Good wages



Interesting work

Job Security




Recognition


Intrinsic rewards









Job Analysis


Pay grades




Job Analysis









Equal












Henderson RI






Work required


Pay provided


Henderson RI




Pay structure


Overlapping grades


Spread


Compression

Comp-ratio

Henderson RI






$1000(1+(05)2)

Minimum = $800


8(1+05)Maximum = $1200

MinMax Formula

example








75 of the time

Henderson RI









Pay Practices

Seniority

Rewards loyalty

Performance

Rewards results

Cost of living CPI

Rewards showing up

Across the Board







Thom Wilson





Pay for Knowledge

Pay for Skills

Pay for learning

Enhances team work




Action












Broadbanding





Henderson RI






Henderson RI




Group LLC 44

Comp-ratio








Group LLC 45

Competency Based


Problem solving

Knowledge

Decision making




Group LLC 46

Guidelines

Be consistent

Be transparent






Group LLC 47

Guidelines cont


Honor your past







Group LLC 48

Action steps










Group LLC 49







sources









Base Pay Programs


Incentive Programs











Chance for growth


Good wages



Interesting work

Job Security




Recognition


Intrinsic rewards









Job Analysis


Pay grades




Job Analysis









Equal












Henderson RI






Work required


Pay provided


Henderson RI




Pay structure


Overlapping grades


Spread


Compression

Comp-ratio

Henderson RI






$1000(1+(05)2)

Minimum = $800


8(1+05)Maximum = $1200

MinMax Formula

example








75 of the time

Henderson RI









Pay Practices

Seniority

Rewards loyalty

Performance

Rewards results

Cost of living CPI

Rewards showing up

Across the Board







Thom Wilson





Pay for Knowledge

Pay for Skills

Pay for learning

Enhances team work




Action












Broadbanding





Henderson RI






Henderson RI




Group LLC 44

Comp-ratio








Group LLC 45

Competency Based


Problem solving

Knowledge

Decision making




Group LLC 46

Guidelines

Be consistent

Be transparent






Group LLC 47

Guidelines cont


Honor your past







Group LLC 48

Action steps










Group LLC 49







sources















Chance for growth


Good wages



Interesting work

Job Security




Recognition


Intrinsic rewards









Job Analysis


Pay grades




Job Analysis









Equal












Henderson RI






Work required


Pay provided


Henderson RI




Pay structure


Overlapping grades


Spread


Compression

Comp-ratio

Henderson RI






$1000(1+(05)2)

Minimum = $800


8(1+05)Maximum = $1200

MinMax Formula

example








75 of the time

Henderson RI









Pay Practices

Seniority

Rewards loyalty

Performance

Rewards results

Cost of living CPI

Rewards showing up

Across the Board







Thom Wilson





Pay for Knowledge

Pay for Skills

Pay for learning

Enhances team work




Action












Broadbanding





Henderson RI






Henderson RI




Group LLC 44

Comp-ratio








Group LLC 45

Competency Based


Problem solving

Knowledge

Decision making




Group LLC 46

Guidelines

Be consistent

Be transparent






Group LLC 47

Guidelines cont


Honor your past







Group LLC 48

Action steps










Group LLC 49







sources








Recognition


Intrinsic rewards









Job Analysis


Pay grades




Job Analysis









Equal












Henderson RI






Work required


Pay provided


Henderson RI




Pay structure


Overlapping grades


Spread


Compression

Comp-ratio

Henderson RI






$1000(1+(05)2)

Minimum = $800


8(1+05)Maximum = $1200

MinMax Formula

example








75 of the time

Henderson RI









Pay Practices

Seniority

Rewards loyalty

Performance

Rewards results

Cost of living CPI

Rewards showing up

Across the Board







Thom Wilson





Pay for Knowledge

Pay for Skills

Pay for learning

Enhances team work




Action












Broadbanding





Henderson RI






Henderson RI




Group LLC 44

Comp-ratio








Group LLC 45

Competency Based


Problem solving

Knowledge

Decision making




Group LLC 46

Guidelines

Be consistent

Be transparent






Group LLC 47

Guidelines cont


Honor your past







Group LLC 48

Action steps










Group LLC 49







sources










Job Analysis


Pay grades




Job Analysis









Equal












Henderson RI






Work required


Pay provided


Henderson RI




Pay structure


Overlapping grades


Spread


Compression

Comp-ratio

Henderson RI






$1000(1+(05)2)

Minimum = $800


8(1+05)Maximum = $1200

MinMax Formula

example








75 of the time

Henderson RI









Pay Practices

Seniority

Rewards loyalty

Performance

Rewards results

Cost of living CPI

Rewards showing up

Across the Board







Thom Wilson





Pay for Knowledge

Pay for Skills

Pay for learning

Enhances team work




Action












Broadbanding





Henderson RI






Henderson RI




Group LLC 44

Comp-ratio








Group LLC 45

Competency Based


Problem solving

Knowledge

Decision making




Group LLC 46

Guidelines

Be consistent

Be transparent






Group LLC 47

Guidelines cont


Honor your past







Group LLC 48

Action steps










Group LLC 49







sources








Job Analysis









Equal












Henderson RI






Work required


Pay provided


Henderson RI




Pay structure


Overlapping grades


Spread


Compression

Comp-ratio

Henderson RI






$1000(1+(05)2)

Minimum = $800


8(1+05)Maximum = $1200

MinMax Formula

example








75 of the time

Henderson RI









Pay Practices

Seniority

Rewards loyalty

Performance

Rewards results

Cost of living CPI

Rewards showing up

Across the Board







Thom Wilson





Pay for Knowledge

Pay for Skills

Pay for learning

Enhances team work




Action












Broadbanding





Henderson RI






Henderson RI




Group LLC 44

Comp-ratio








Group LLC 45

Competency Based


Problem solving

Knowledge

Decision making




Group LLC 46

Guidelines

Be consistent

Be transparent






Group LLC 47

Guidelines cont


Honor your past







Group LLC 48

Action steps










Group LLC 49







sources









Equal












Henderson RI






Work required


Pay provided


Henderson RI




Pay structure


Overlapping grades


Spread


Compression

Comp-ratio

Henderson RI






$1000(1+(05)2)

Minimum = $800


8(1+05)Maximum = $1200

MinMax Formula

example








75 of the time

Henderson RI









Pay Practices

Seniority

Rewards loyalty

Performance

Rewards results

Cost of living CPI

Rewards showing up

Across the Board







Thom Wilson





Pay for Knowledge

Pay for Skills

Pay for learning

Enhances team work




Action












Broadbanding





Henderson RI






Henderson RI




Group LLC 44

Comp-ratio








Group LLC 45

Competency Based


Problem solving

Knowledge

Decision making




Group LLC 46

Guidelines

Be consistent

Be transparent






Group LLC 47

Guidelines cont


Honor your past







Group LLC 48

Action steps










Group LLC 49







sources
















Henderson RI






Work required


Pay provided


Henderson RI




Pay structure


Overlapping grades


Spread


Compression

Comp-ratio

Henderson RI






$1000(1+(05)2)

Minimum = $800


8(1+05)Maximum = $1200

MinMax Formula

example








75 of the time

Henderson RI









Pay Practices

Seniority

Rewards loyalty

Performance

Rewards results

Cost of living CPI

Rewards showing up

Across the Board







Thom Wilson





Pay for Knowledge

Pay for Skills

Pay for learning

Enhances team work




Action












Broadbanding





Henderson RI






Henderson RI




Group LLC 44

Comp-ratio








Group LLC 45

Competency Based


Problem solving

Knowledge

Decision making




Group LLC 46

Guidelines

Be consistent

Be transparent






Group LLC 47

Guidelines cont


Honor your past







Group LLC 48

Action steps










Group LLC 49







sources










Work required


Pay provided


Henderson RI




Pay structure


Overlapping grades


Spread


Compression

Comp-ratio

Henderson RI






$1000(1+(05)2)

Minimum = $800


8(1+05)Maximum = $1200

MinMax Formula

example








75 of the time

Henderson RI









Pay Practices

Seniority

Rewards loyalty

Performance

Rewards results

Cost of living CPI

Rewards showing up

Across the Board







Thom Wilson





Pay for Knowledge

Pay for Skills

Pay for learning

Enhances team work




Action












Broadbanding





Henderson RI






Henderson RI




Group LLC 44

Comp-ratio








Group LLC 45

Competency Based


Problem solving

Knowledge

Decision making




Group LLC 46

Guidelines

Be consistent

Be transparent






Group LLC 47

Guidelines cont


Honor your past







Group LLC 48

Action steps










Group LLC 49







sources








Pay structure


Overlapping grades


Spread


Compression

Comp-ratio

Henderson RI






$1000(1+(05)2)

Minimum = $800


8(1+05)Maximum = $1200

MinMax Formula

example








75 of the time

Henderson RI









Pay Practices

Seniority

Rewards loyalty

Performance

Rewards results

Cost of living CPI

Rewards showing up

Across the Board







Thom Wilson





Pay for Knowledge

Pay for Skills

Pay for learning

Enhances team work




Action












Broadbanding





Henderson RI






Henderson RI




Group LLC 44

Comp-ratio








Group LLC 45

Competency Based


Problem solving

Knowledge

Decision making




Group LLC 46

Guidelines

Be consistent

Be transparent






Group LLC 47

Guidelines cont


Honor your past







Group LLC 48

Action steps










Group LLC 49







sources










$1000(1+(05)2)

Minimum = $800


8(1+05)Maximum = $1200

MinMax Formula

example








75 of the time

Henderson RI









Pay Practices

Seniority

Rewards loyalty

Performance

Rewards results

Cost of living CPI

Rewards showing up

Across the Board







Thom Wilson





Pay for Knowledge

Pay for Skills

Pay for learning

Enhances team work




Action












Broadbanding





Henderson RI






Henderson RI




Group LLC 44

Comp-ratio








Group LLC 45

Competency Based


Problem solving

Knowledge

Decision making




Group LLC 46

Guidelines

Be consistent

Be transparent






Group LLC 47

Guidelines cont


Honor your past







Group LLC 48

Action steps










Group LLC 49







sources












75 of the time

Henderson RI









Pay Practices

Seniority

Rewards loyalty

Performance

Rewards results

Cost of living CPI

Rewards showing up

Across the Board







Thom Wilson





Pay for Knowledge

Pay for Skills

Pay for learning

Enhances team work




Action












Broadbanding





Henderson RI






Henderson RI




Group LLC 44

Comp-ratio








Group LLC 45

Competency Based


Problem solving

Knowledge

Decision making




Group LLC 46

Guidelines

Be consistent

Be transparent






Group LLC 47

Guidelines cont


Honor your past







Group LLC 48

Action steps










Group LLC 49







sources













Pay Practices

Seniority

Rewards loyalty

Performance

Rewards results

Cost of living CPI

Rewards showing up

Across the Board







Thom Wilson





Pay for Knowledge

Pay for Skills

Pay for learning

Enhances team work




Action












Broadbanding





Henderson RI






Henderson RI




Group LLC 44

Comp-ratio








Group LLC 45

Competency Based


Problem solving

Knowledge

Decision making




Group LLC 46

Guidelines

Be consistent

Be transparent






Group LLC 47

Guidelines cont


Honor your past







Group LLC 48

Action steps










Group LLC 49







sources










Thom Wilson





Pay for Knowledge

Pay for Skills

Pay for learning

Enhances team work




Action












Broadbanding





Henderson RI






Henderson RI




Group LLC 44

Comp-ratio








Group LLC 45

Competency Based


Problem solving

Knowledge

Decision making




Group LLC 46

Guidelines

Be consistent

Be transparent






Group LLC 47

Guidelines cont


Honor your past







Group LLC 48

Action steps










Group LLC 49







sources









Pay for Knowledge

Pay for Skills

Pay for learning

Enhances team work




Action












Broadbanding





Henderson RI






Henderson RI




Group LLC 44

Comp-ratio








Group LLC 45

Competency Based


Problem solving

Knowledge

Decision making




Group LLC 46

Guidelines

Be consistent

Be transparent






Group LLC 47

Guidelines cont


Honor your past







Group LLC 48

Action steps










Group LLC 49







sources








Action












Broadbanding





Henderson RI






Henderson RI




Group LLC 44

Comp-ratio








Group LLC 45

Competency Based


Problem solving

Knowledge

Decision making




Group LLC 46

Guidelines

Be consistent

Be transparent






Group LLC 47

Guidelines cont


Honor your past







Group LLC 48

Action steps










Group LLC 49







sources















Broadbanding





Henderson RI






Henderson RI




Group LLC 44

Comp-ratio








Group LLC 45

Competency Based


Problem solving

Knowledge

Decision making




Group LLC 46

Guidelines

Be consistent

Be transparent






Group LLC 47

Guidelines cont


Honor your past







Group LLC 48

Action steps










Group LLC 49







sources










Henderson RI




Group LLC 44

Comp-ratio








Group LLC 45

Competency Based


Problem solving

Knowledge

Decision making




Group LLC 46

Guidelines

Be consistent

Be transparent






Group LLC 47

Guidelines cont


Honor your past







Group LLC 48

Action steps










Group LLC 49







sources








Group LLC 44

Comp-ratio








Group LLC 45

Competency Based


Problem solving

Knowledge

Decision making




Group LLC 46

Guidelines

Be consistent

Be transparent






Group LLC 47

Guidelines cont


Honor your past







Group LLC 48

Action steps










Group LLC 49







sources








Group LLC 45

Competency Based


Problem solving

Knowledge

Decision making




Group LLC 46

Guidelines

Be consistent

Be transparent






Group LLC 47

Guidelines cont


Honor your past







Group LLC 48

Action steps










Group LLC 49







sources








Group LLC 46

Guidelines

Be consistent

Be transparent






Group LLC 47

Guidelines cont


Honor your past







Group LLC 48

Action steps










Group LLC 49







sources








Group LLC 47

Guidelines cont


Honor your past







Group LLC 48

Action steps










Group LLC 49







sources








Group LLC 48

Action steps










Group LLC 49







sources








Group LLC 49







sources








sources





Compensation Current Trends Andmethodologies

Documents

Transcript of Compensation Current Trends Andmethodologies