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COMPETENCY-BASEDSALARY + REWARDSTRUCTURETraining Session and WorkshopKenny Ong            http://totallyunrelatedrandomand...
Intro• Day Care Center       http://totallyunrelatedrandomanddebatable.blogspot.com/
Part AHRM STRATEGY ANDREWARD STRATEGY         http://totallyunrelatedrandomanddebatable.blogspot.com/
The McPlaybook* Make it easy to eat                   Make it easy to prepare • 50% drive-thru                      • High...
Phases of Organisation                             Development        Growth            Current                     Next P...
The Changing Business Environment                 Pre-merdeka1945-              Post Merdeka1957-            Industrializa...
Budgeting vs. PrioritiesExample: Business Situation vs. R&D Priorities   Upturn                          Flat             ...
Business Situations vs. HRM   Upturn                              Flat                  DownturnFight Complacency         ...
Business Situations vs. HRM     Upturn •Projects                 Flat                          Downturn •Job Ads Fight Com...
Staff Attraction & RetentionTHE BATTLE FOR TALENT      http://totallyunrelatedrandomanddebatable.blogspot.com/
Intro:“Cow don’t drink water cannot    push cow head down”    http://totallyunrelatedrandomanddebatable.blogspot.com/
Question: TalentManagement for Who?                    Excellent                  Very Good                    Average    ...
Before we start…1. Who designs your Talent   Management programs?2. Are you in the Talent Pool?3. Do you qualify?4. “It ta...
Talent Segmentation• Who are your Talents?  : A Talent for others does not mean a Talent for you        http://totallyunre...
Talent Segment Targeting•   Unwanted by big MNCs•   Small companies•   Boring Environment•   No Growth/Learning•   No MBA•...
Talent Segmentation• Identify                          POTENTIAL                      2               3                   ...
Talent Segmentation• Identify                          POTENTIAL                      2               3                   ...
Selection and   Identification   1. Results                         PERFORMANCE                                        APP...
Selection and    Identification POTENTIAL              1. CapacityEVALUATION                       2. Competencies        ...
Selection and  Identification POTENTIALEVALUATION                          1. CapacityLearn                               ...
Selection and   Identification  POTENTIAL EVALUATION                         2. CompetenciesCompetent                     ...
Selection and   Identification  POTENTIAL EVALUATION                          3. CultureDemonstrate                       ...
ExerciseDefine ‘Performance’                  Define ‘Potential’         http://totallyunrelatedrandomanddebatable.blogspo...
Exercise• Exercise:1. Factors for Performance Appraisal2. Factors for Potential Appraisal        http://totallyunrelatedra...
Talent Scarcity and Brain-      Drain Problem1. Change your Business2. Change your Business Model3. Re-locate4. In-Source5...
SALARY & BENEFITS: HOW ITFITS INTO THE BIGGERSCHEME OF THINGS   http://totallyunrelatedrandomanddebatable.blogspot.com/
Brand Execution: Aligning       the 4-Wheels                                                                       Brand  ...
Brand Alignment: Talent  Segment PhilosophiesPrinciples                             HR Philosophy 1. Equal / Fair 2. Happy...
Brand Alignment: Demographics  Segment Philosophies?Principles                             HR Philosophy    http://totally...
Alignment: Framework               •   Org StructureStructure      •   Job Design               •   C&B               •   ...
Strategy: Framework          •   ToolsResources •   Physical facilities          •   Peer support          •   Information...
Strategy: FrameworkLeadership      •   Role modeling                •   Vision/Mission/Philosophy                •   Leade...
Strategy: Framework            •   RecognitionPerson      •   Recruitment            •   Training            •   Values   ...
Alignment: 4-Wheels Model                                                                       Brand                     ...
• Exercise: Use the 4-wheels to determine  corporate alignment needs        http://totallyunrelatedrandomanddebatable.blog...
Consulting Process and                    Deliverables                                                            Step 3: ...
Part BSALARY & BENEFITS         http://totallyunrelatedrandomanddebatable.blogspot.com/
OPTIMIZING COMPENSATION& BENEFITS   http://totallyunrelatedrandomanddebatable.blogspot.com/
Background: The Four  Desperates1. Desperate                        2. DesperateCompetition                          Consu...
• Exercise: Define your Talent issues, limited to  the most critical 4 aspects.        http://totallyunrelatedrandomanddeb...
Principles and Objectives   Principles                          Company’s Needs1. Succession Planning of Key Leaders –   F...
Principles and ObjectivesPrinciples                             HR Philosophy 1. Equal / Fair 2. Happy / Productive 3. Hir...
• Exercise: Define your Company-HRM Objectives  and HRM Philosophies.       http://totallyunrelatedrandomanddebatable.blog...
What drives our Reward?Strategy                              Values           Compensation &              Benefits http://...
Before we proceed…Reality #1                   Cash is King      http://totallyunrelatedrandomanddebatable.blogspot.com/
Before we proceed…Reality #2                 Tangible C&B                      Attraction      http://totallyunrelatedrand...
Before we proceed…Reality #3          In-Tangible C&B                     Retention     http://totallyunrelatedrandomandde...
Before we proceed…Reality #4          In-Tangible C&B            Tipping Point for           Attraction/Retention     http...
The 51.28% Theory• Resign = Push + Pull > 51.28%• If staff is Happy: => 0 + Pull > 51.28%     http://totallyunrelatedrando...
• Exercise: What “Values” drive your Talent  Management strategies?• How will these Values impact your HR and C&B  policie...
Branding and Positioning:“You don’t attract who you want.    You attract who you are”                                     ...
What to Pay?•   Pay for Service•   Pay for Job•   Pay for Competency•   Pay for Performance        http://totallyunrelated...
Performance and Incentives1. Internal Equity  1. Internal Job Rates  2. Performance differentials2. External Competitivene...
What’s the Difference?• Increment• Bonus• Promotion      Exercise: How does your company            define the difference?...
How to choose a durian   http://totallyunrelatedrandomanddebatable.blogspot.com/
How to choose a durian  Durian                            CompareEachOther          Other          stall   http://totallyu...
How do we compare? • Skills /                                   • ProblemsKnowledge              • Responsibility    http:...
Pay for Job• Competency                                • Problem solving -    Knowledge                                   ...
Equity     Job                            CompareOthers                                                •Job Size        Ou...
What to Pay?•   Pay for Service•   Pay for Job•   Pay for Competency•   Pay for Performance         Exercise: Which ones d...
Pay For SERVICEhttp://totallyunrelatedrandomanddebatable.blogspot.com/
“He has 20 years experience:  1 year of bad experience     repeated 20 times”    http://totallyunrelatedrandomanddebatable...
Pay for SERVICE• Loyalty (relevant years of service)  This consideration may be rewarded in the following manner :-       ...
Pay for SERVICE• Seniority (career level on the professional career level)  We do not recommend that years of service(Seni...
Pay For JOBhttp://totallyunrelatedrandomanddebatable.blogspot.com/
DocumentationJOB DESIGN    http://totallyunrelatedrandomanddebatable.blogspot.com/
District Engineer, TNB        Duties and              If stated as Accountabilities then the job      Responsibilities    ...
Results Driven     Activity vs.    Accountabilityhttp://totallyunrelatedrandomanddebatable.blogspot.com/
Exercise: Results      DescriptionKey    Key Activities                       KPIsResult       1.                         ...
General Manager, ManufacturingKey Results                 Major Supporting Actions                        Performance     ...
General Manager, ManufacturingKey Results                Major Supporting Actions                        Performance      ...
General Manager, ManufacturingKey Results                Major Supporting Actions                        Performance      ...
Salary Practice Analysis of                                               Executive Director Positions                    ...
What is Market Reference Job Grade?Market Reference Job Grade is an observed cluster of similar size jobs.    Why Market R...
Determination of Market Salary Practice                                                                                   ...
How Market Reference Job Grade is Determined ? Job Descriptions                               Organisation StructureCurren...
How job evaluation is conducted                 CompetencyResults                              Problem SolvingCreation    ...
The ranking method• Jobs are considered as a whole• Reporting relationships or nature of functions or some  discernible fa...
The job classification methodWhole jobs are grouped together on the basis that theyseem to be equivalent in size.         ...
The factor comparison methodWhat are relevant factors?         • Know-how                             • Problem solving   ...
The factor comparison method - continuedFactors are measured by comparing one against the other.        Knowledge         ...
The point factor method• For each factor a scale is developed.• The factors chosen are tested for reliability and validity...
Point Factor Method -                Job Evaluation• Job Evaluation is a system for rating jobs logically and  fairly• Web...
Job Factor : Competencies• Competency includes every kind of capability, skill andability that is necessary to produce the...
Levels of Competency2112   Level   Exceptional Mastery1840    11     Unique mastery in a scientific discipline or professi...
Job Factor : Problem Solving ExplanationProblem solving is the application of knowledge required to identify andresolve pr...
Levels of Problem Solving528                                                                    Strategic Direction460   L...
Job Factor : Results              Creation ExplanationThis is the element of the job that can be best described as “theacc...
Levels of Results Creation1056                                                    Strategic Direction920    Level 9 Vision...
Job Evaluation ResultsThe positions of Executive Chairman and Executive Directors were evaluated basedon the Role and Acco...
Job Evaluation Results                                                                   Problem                          ...
Market Salary Scale Job      Mkt                                                                                          ...
Results Creation (Freedom to Act)Grade                                                                                    ...
Alternative to Job Evaluation1. Obtain Consultant’s report2. Match internal jobs (+salaries, between 2-5 yrs   in the job)...
Pay For PERFORMANCEhttp://totallyunrelatedrandomanddebatable.blogspot.com/
Which system should we      use?                     Trait-based                  Behavior-based                          ...
Compa Ratio TableUse this if your company:• Pays for Performance, and• Pays for Job ratesDef:Mid-Point = Mid Point of Pay ...
Compa Ratio Analysis – An                     Indicator of Salary PositionCompa Ratio (CR) =Actual Salary ÷ Mid-Point Sala...
Incumbents’ Salary AnalysisIncumbents’ monthly base salaries compared with mid-point salary of therecommended salary range...
Compa Ratio Table       < 0.7         ≥0.7 -         >0.9 -         ≥1.1 -      > 1.3                      ≤0.9           ...
Compa Ratio Table       < 0.7         ≥0.7 -         >0.9 -         ≥1.1 -      > 1.3                      ≤0.9           ...
Compa Ratio Table       < 0.7         ≥0.7 -         >0.9 -         ≥1.1 -      > 1.3                      ≤0.9           ...
Compa Ratio Table       < 0.7         ≥0.7 -         >0.9 -         ≥1.1 -      > 1.3                      ≤0.9           ...
• Exercise:• Determine your pay grades and salary points  (internal or external benchmark?)• Draw your Compa Ratio Table  ...
Employee Distinction?       < 0.7         ≥0.7 -         >0.9 -         ≥1.1 -      > 1.3                      ≤0.9       ...
Employee Distinction?       < 0.7         ≥0.7 -         >0.9 -         ≥1.1 -      > 1.3                      ≤0.9       ...
Employee Distinction Average            Rating           Multiply         Example           Example   Rating              ...
Job Holder’s Salary                 Determination Model Step 1                     Step 2                                 ...
Job Holder’s Salary                  DeterminationThe significant compensable elements of the three incumbents are linked ...
Employee Distinction• Identify                          POTENTIAL                      2               3                  ...
Curse of the Bell Curve ‘A’         ‘B’           ‘C’           ‘D’          ‘E’Staff       Staff         Staff         St...
Pay For COMPETENCIEShttp://totallyunrelatedrandomanddebatable.blogspot.com/
Position: Secretary Responsibilities +      Personal Competencies            Differentiating Tasks + Activities           ...
Competencieshttp://totallyunrelatedrandomanddebatable.blogspot.com/
The appointment of a Senior                     Manager - an illustrationSelection criteria of the                       P...
Job vs Person Match:                      District Engineer     Mr. A                                                     ...
Job vs Person Match:                    Room Sales person    Ms. A                                                        ...
Superstar Competency      Model• Exercise: Develop Your Own “Superstar”  Competency Model        http://totallyunrelatedra...
Competency Target Setting1.   Initiative2.   Teamwork3.   Problem Solving4.   Leadership5.   Integrity           What’s th...
Competency Target SettingInitiative1. Minimize problems quickly without needing to     be asked2. Seeks personal growth an...
• Exercise: Competency Dictionary• (Refer to Workbook for examples)        http://totallyunrelatedrandomanddebatable.blogs...
Competency Standards3      Meets behavioral standards consistently. Is a         good role model for others.2      Meets b...
Exercise: CompetencyStandards http://totallyunrelatedrandomanddebatable.blogspot.com/
• The Specialist Career Ladder        http://totallyunrelatedrandomanddebatable.blogspot.com/
Career ManagementA professional of the past                            The new career professional   Where is my job      ...
SCL: Specialist CareerLadder   Principal Consultant (1)              Consultant (4)               Specialist (4)     Assoc...
SCL: Specialist Career Ladder                                           •Telco,Principal Consultant (1)                   ...
SCL: Specialist Career        LadderGeneral incentives &                    General qualifying/re-privileges:             ...
Part B-2SALARY STRUCTURES ANDSALARY SURVEYS      http://totallyunrelatedrandomanddebatable.blogspot.com/
• Refer to Benchmarking and Surveys (Workbook)       http://totallyunrelatedrandomanddebatable.blogspot.com/
Options to Develop Salary      Structure1. Self – using JE System  1. -> match Job Points ranges to Consultant’s scale  2....
Salary Structures1. Narrow Band – 40%-60% between min/max2. Broad Band– 100%-200% between min/max3. Specialist Ladder     ...
Broad BandPros                                   Cons1. Streamlines Hierarchy               1. No Awareness of2. Facilitat...
Part B-3VARIABLE AND INCENTIVESCHEMES      http://totallyunrelatedrandomanddebatable.blogspot.com/
Incentive Scheme Design  Agenda  1. Objective  2. Situation Analysis  3. Target Areas to be improved  4. Current Incentive...
Objective?1. What are you trying to achieve?2. How to measure?3. What is the Gap?          http://totallyunrelatedrandoman...
Target group?The following positions are eligible to participate in thisscheme:            http://totallyunrelatedrandoman...
Situation Analysis?1. Retention?2. Working environment?3. The current basic pay?4. Teamwork?5. Supervision/Leadership styl...
Target areas to be improved?1. Increase/Decrease the basic pay?2. Fixed costs?3. Incentives tied to… ??4. Absenteeism?5. Q...
Current incentives?http://totallyunrelatedrandomanddebatable.blogspot.com/
Recommended KPIs to be         incentivisedOutput                   Skill (Proficiency) Behavioural                       ...
Proposed incentive scheme1. Fixed Salary Proportion (Fixed Personal   Income, Variable Team Bonus)Total Payout= Fixed Quan...
Proposed incentive scheme1. Fixed Salary Proportion (Fixed Personal Income, Variable   Team Bonus)Example:1. Budgeted ince...
Proposed incentive scheme 1. Fixed Salary Proportion (Fixed Personal Income, Variable    Team Bonus)Annual Bonus Incentive...
Proposed incentive scheme2. Two-tier Multiplier (Variable Personal Income,   Variable Team Bonus) Total Payout = Basic Pay...
Proposed incentive scheme  2. Two-tier Multiplier (Variable Personal Income,     Variable Team Bonus)Example: Production O...
Proposed incentive scheme 2. Two-tier Multiplier (Variable Personal Income,    Variable Team Bonus)Annual Bonus Incentive ...
Proposed incentive scheme2.                          Two-tier Multiplier (Variable Personal Income, Variable Team Bonus)  ...
Proposed incentive scheme   3.   Team Ratio Plan (Team-based Income, No Annual Bonus)   Total Payout =   Basic Pay + Month...
Proposed incentive scheme    3.   Team Ratio Plan (Team-based Income, No Annual Bonus)Example: Production Operator        ...
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
Bridge Knowle  - Salary and Reward Structures (Training and Workshop)
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Bridge Knowle - Salary and Reward Structures (Training and Workshop)

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Identify and select Salary Structures that meets and
contributes to organization objectives across various functions
 Know How to Benchmark & Match Roles in your
company’s salary structure
 Know how to choose a Suitable Variable Pay Scheme and
examine their linkage to performance management
 Identifying Challenges/Pitfalls in salary structures and
variable pay scheme

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Transcript of "Bridge Knowle - Salary and Reward Structures (Training and Workshop)"

  1. 1. COMPETENCY-BASEDSALARY + REWARDSTRUCTURETraining Session and WorkshopKenny Ong http://totallyunrelatedrandomanddebatable.blogspot.com/
  2. 2. Intro• Day Care Center http://totallyunrelatedrandomanddebatable.blogspot.com/
  3. 3. Part AHRM STRATEGY ANDREWARD STRATEGY http://totallyunrelatedrandomanddebatable.blogspot.com/
  4. 4. The McPlaybook* Make it easy to eat Make it easy to prepare • 50% drive-thru • High Turnover • Meals held in one • Tasks simple to learn hand & repeat Make it quick Make what customers want • “Fast Food” • Prowls market for new • Tests new products products for Cooking Times • Monitored field tests*Adapted from: Businessweek , Februrary 5th 2007 http://totallyunrelatedrandomanddebatable.blogspot.com/
  5. 5. Phases of Organisation Development Growth Current Next Phase Future Exploring and role Managing growth Managing Efficiency and Phase Reengineering definition Organisation Entrepreneurial Professional Organisation Efficiency features Phase Development Phase Phase • Results orientation • New relationship buildingPeople • Innovation • Teamwork & Cooperation • Enthusiastic • Open to changecharacteristics • Concern for order & quality • Efficiency & productivity oriented • High standardsOrganisation • Flexibility • Excellence • Responsibility • Quick decision making • Participatoryclimate • Commitment • Pace setting and • Systems thinking • Coaching & counselingManagement authoritative • Coaching & developmental • Authoritativestyle • Attract capable individuals • Reward results achieved • Cost efficiency • Flexibility • Retain & motivate • Consistency • Equity • Variable base salary & • High to medium base salaryObjectives of effectiveness related & longer term performance • Medium base salary and performance rewards related rewards efficiency performance rewardsHR policies http://totallyunrelatedrandomanddebatable.blogspot.com/
  6. 6. The Changing Business Environment Pre-merdeka1945- Post Merdeka1957- Industrialization Development of the knowledge 1956 1969 period1970-1995 based economy1996 and on goingEra • Post war • Post colonial • Industrial • Free market, customer • Reconstruction administration development centered organization • National developmentGovernment • Establishing control • Establishing • Leading economic • Recognizing global forcesobjectives over natural government control change • Preparing a resilient and just resources • Protecting free • Creation of society • Establishing enterprise conditions for • Searching for a new administration • Domestic economic regional and relationship model with systems in the development international industry interest of the British recognition empireCorporate • Production for the • Import substitution • Production capacity • Innovationculture colonial empire • Domestic market utilization • Global standards on needs • International efficiencyCorporate • BOD led by “home • Autocratic • market Authoritative • • Professional management ParticipativeLeadership office” • BOD led by • BOD led by • BOD of professionals, team representative individualistic style charismatic decision making directed at • Home office personalities achievement of targeted standards • Largely local results principles on BOD • International standards on conduct corporate governance.Pay • Pay practice • Pay for loyalty – • Flexible pay • Attract, retain and motivatePhilosophy “enough” years of service competent professionals http://totallyunrelatedrandomanddebatable.blogspot.com/
  7. 7. Budgeting vs. PrioritiesExample: Business Situation vs. R&D Priorities Upturn Flat DownturnFight Complacency Innovation SalesSharpen Edge Acquire Cash FlowKeep Momentum ProfitsConquer Build momentumNPD Cycle Time Focused on Improve Top 15% ‘Breakthrough’Improve Edge revenue-generating JV, In-source, Out- productsExtensions sourceCounter Competitor Eliminate bottom 20% ↓ R&D, ↑Sales http://totallyunrelatedrandomanddebatable.blogspot.com/
  8. 8. Business Situations vs. HRM Upturn Flat DownturnFight Complacency Innovation SalesSharpen Edge Acquire Cash FlowKeep Momentum ProfitsConquer Build momentum‘Change’ mgmt Talent Mgmt Top Talent focusReduce Fat Innovation/R&D Sales, Sales, SalesContinuity Early wins Increase attritionEveryone Happy Slow Down HR Costs Motivation http://totallyunrelatedrandomanddebatable.blogspot.com/
  9. 9. Business Situations vs. HRM Upturn •Projects Flat Downturn •Job Ads Fight Complacency Innovation Sales •Communication Sharpen Edge Acquire Cash Flow •F/L Manager Com. Keep Momentum Profits •Middle Management Conquer •Involvement (survey, momentum Build suggestions)‘Change’ mgmt Talent Mgmt Top Talent focus •Realistic GoalsReduce Fat Stack R&D Stack Sales •Controllable KPIs (customerContinuity Early wins Increase attrition satisfaction, production)Everyone Happy Slow Down HR Costs Motivation http://totallyunrelatedrandomanddebatable.blogspot.com/
  10. 10. Staff Attraction & RetentionTHE BATTLE FOR TALENT http://totallyunrelatedrandomanddebatable.blogspot.com/
  11. 11. Intro:“Cow don’t drink water cannot push cow head down” http://totallyunrelatedrandomanddebatable.blogspot.com/
  12. 12. Question: TalentManagement for Who? Excellent Very Good Average Not Good Commit Suicide http://totallyunrelatedrandomanddebatable.blogspot.com/
  13. 13. Before we start…1. Who designs your Talent Management programs?2. Are you in the Talent Pool?3. Do you qualify?4. “It takes a crook to catch a crook” http://totallyunrelatedrandomanddebatable.blogspot.com/
  14. 14. Talent Segmentation• Who are your Talents? : A Talent for others does not mean a Talent for you http://totallyunrelatedrandomanddebatable.blogspot.com/
  15. 15. Talent Segment Targeting• Unwanted by big MNCs• Small companies• Boring Environment• No Growth/Learning• No MBA• Passion, Values, IQ (streetsmart)• Appreciate Chaos• Multitask• Passion to Learn http://totallyunrelatedrandomanddebatable.blogspot.com/
  16. 16. Talent Segmentation• Identify POTENTIAL 2 3 4 5PERFORMANCE 5 Group I (Talent Pool) 4 3 2 http://totallyunrelatedrandomanddebatable.blogspot.com/
  17. 17. Talent Segmentation• Identify POTENTIAL 2 3 4 5PERFORMANCE Group II Group I 5 ( Potential) (Talent Pool) 4 Group IV Group III 3 (Counseling) ( Performance) 2 http://totallyunrelatedrandomanddebatable.blogspot.com/
  18. 18. Selection and Identification 1. Results PERFORMANCE APPRAISAL 2. Values 3. SpecialContributions http://totallyunrelatedrandomanddebatable.blogspot.com/
  19. 19. Selection and Identification POTENTIAL 1. CapacityEVALUATION 2. Competencies 3. Culture http://totallyunrelatedrandomanddebatable.blogspot.com/
  20. 20. Selection and Identification POTENTIALEVALUATION 1. CapacityLearn Ambition Next Level http://totallyunrelatedrandomanddebatable.blogspot.com/
  21. 21. Selection and Identification POTENTIAL EVALUATION 2. CompetenciesCompetent Pressure Reliable/Consistent http://totallyunrelatedrandomanddebatable.blogspot.com/
  22. 22. Selection and Identification POTENTIAL EVALUATION 3. CultureDemonstrate Influence Improve http://totallyunrelatedrandomanddebatable.blogspot.com/
  23. 23. ExerciseDefine ‘Performance’ Define ‘Potential’ http://totallyunrelatedrandomanddebatable.blogspot.com/
  24. 24. Exercise• Exercise:1. Factors for Performance Appraisal2. Factors for Potential Appraisal http://totallyunrelatedrandomanddebatable.blogspot.com/
  25. 25. Talent Scarcity and Brain- Drain Problem1. Change your Business2. Change your Business Model3. Re-locate4. In-Source5. JV or Partnership or Swap6. Create micro Business Units7. Over Promote8. Over Pay9. Contractual tie-up10.Hire Low, Train High http://totallyunrelatedrandomanddebatable.blogspot.com/
  26. 26. SALARY & BENEFITS: HOW ITFITS INTO THE BIGGERSCHEME OF THINGS http://totallyunrelatedrandomanddebatable.blogspot.com/
  27. 27. Brand Execution: Aligning the 4-Wheels Brand ResourcesStructure Position Segmentation & Targeting Philosophies Leadership Person http://totallyunrelatedrandomanddebatable.blogspot.com/
  28. 28. Brand Alignment: Talent Segment PhilosophiesPrinciples HR Philosophy 1. Equal / Fair 2. Happy / Productive 3. Hire Low, Train High 4. Performance vs Potential 5. SP drives TM 6. Talent Pool owned by the company 7. Retention / Engagement http://totallyunrelatedrandomanddebatable.blogspot.com/
  29. 29. Brand Alignment: Demographics Segment Philosophies?Principles HR Philosophy http://totallyunrelatedrandomanddebatable.blogspot.com/
  30. 30. Alignment: Framework • Org StructureStructure • Job Design • C&B • Policies & procedures • Decision making • Job fit • Management Systems • BSC and KPIs • Decentralized vs. Centralized • Control vs. Empower http://totallyunrelatedrandomanddebatable.blogspot.com/
  31. 31. Strategy: Framework • ToolsResources • Physical facilities • Peer support • Information • T&D Programs • Mentors • Guides • ICT • OJT http://totallyunrelatedrandomanddebatable.blogspot.com/
  32. 32. Strategy: FrameworkLeadership • Role modeling • Vision/Mission/Philosophy • Leadership Style • Delegation & Empowerment • C&B • Promotions • Transition development http://totallyunrelatedrandomanddebatable.blogspot.com/
  33. 33. Strategy: Framework • RecognitionPerson • Recruitment • Training • Values • Motivation • Self Efficacy • Awareness • Useful Competencies • Career aspirations • Attribution (control) http://totallyunrelatedrandomanddebatable.blogspot.com/
  34. 34. Alignment: 4-Wheels Model Brand ResourcesStructure Position Segmentation & Targeting Philosophies Leadership Person http://totallyunrelatedrandomanddebatable.blogspot.com/
  35. 35. • Exercise: Use the 4-wheels to determine corporate alignment needs http://totallyunrelatedrandomanddebatable.blogspot.com/
  36. 36. Consulting Process and Deliverables Step 3: Step 4: Step 1: Data Step 2: Analysis Recommendations Tools/Resources Turnover history & Exit Changes to HRM policies Interview Formats and Turnover Analysis Interviews (inc. C&B) Questions for Recruitment Work Culture Employee Satisfaction Training Program input Work Culture analysis enhancements Survey Employee Satisfaction Leadership and staff Q12 Staff Engagement Leadership analysis Survey relationship mgmt Tools Q12 Staff Engagement Compensation & Benefits Performance management Benefits Survey format Survey analysis system Stay Survey HRM policies analysis Staff MotivationCompensation & Benefits 39 http://totallyunrelatedrandomanddebatable.blogspot.com/
  37. 37. Part BSALARY & BENEFITS http://totallyunrelatedrandomanddebatable.blogspot.com/
  38. 38. OPTIMIZING COMPENSATION& BENEFITS http://totallyunrelatedrandomanddebatable.blogspot.com/
  39. 39. Background: The Four Desperates1. Desperate 2. DesperateCompetition Consumer3. Desperate 4. Desperate Achievers Changes Refer: Analysis of Retention – Example and Exercise http://totallyunrelatedrandomanddebatable.blogspot.com/
  40. 40. • Exercise: Define your Talent issues, limited to the most critical 4 aspects. http://totallyunrelatedrandomanddebatable.blogspot.com/
  41. 41. Principles and Objectives Principles Company’s Needs1. Succession Planning of Key Leaders – Founding Directors (perpetual business theory)2. Retention of Key Staff – especially younger ones3. Transform into a Performance-based organization http://totallyunrelatedrandomanddebatable.blogspot.com/
  42. 42. Principles and ObjectivesPrinciples HR Philosophy 1. Equal / Fair 2. Happy / Productive 3. Hire Low, Train High 4. Performance vs Potential 5. Retention / Engagement http://totallyunrelatedrandomanddebatable.blogspot.com/
  43. 43. • Exercise: Define your Company-HRM Objectives and HRM Philosophies. http://totallyunrelatedrandomanddebatable.blogspot.com/
  44. 44. What drives our Reward?Strategy Values Compensation & Benefits http://totallyunrelatedrandomanddebatable.blogspot.com/
  45. 45. Before we proceed…Reality #1 Cash is King http://totallyunrelatedrandomanddebatable.blogspot.com/
  46. 46. Before we proceed…Reality #2 Tangible C&B Attraction http://totallyunrelatedrandomanddebatable.blogspot.com/
  47. 47. Before we proceed…Reality #3 In-Tangible C&B Retention http://totallyunrelatedrandomanddebatable.blogspot.com/
  48. 48. Before we proceed…Reality #4 In-Tangible C&B Tipping Point for Attraction/Retention http://totallyunrelatedrandomanddebatable.blogspot.com/
  49. 49. The 51.28% Theory• Resign = Push + Pull > 51.28%• If staff is Happy: => 0 + Pull > 51.28% http://totallyunrelatedrandomanddebatable.blogspot.com/
  50. 50. • Exercise: What “Values” drive your Talent Management strategies?• How will these Values impact your HR and C&B policies? http://totallyunrelatedrandomanddebatable.blogspot.com/
  51. 51. Branding and Positioning:“You don’t attract who you want. You attract who you are” John Maxwell http://totallyunrelatedrandomanddebatable.blogspot.com/
  52. 52. What to Pay?• Pay for Service• Pay for Job• Pay for Competency• Pay for Performance http://totallyunrelatedrandomanddebatable.blogspot.com/
  53. 53. Performance and Incentives1. Internal Equity 1. Internal Job Rates 2. Performance differentials2. External Competitiveness 1. External Job Rates - Benchmarking 2. Demand & Supply http://totallyunrelatedrandomanddebatable.blogspot.com/
  54. 54. What’s the Difference?• Increment• Bonus• Promotion Exercise: How does your company define the difference? http://totallyunrelatedrandomanddebatable.blogspot.com/
  55. 55. How to choose a durian http://totallyunrelatedrandomanddebatable.blogspot.com/
  56. 56. How to choose a durian Durian CompareEachOther Other stall http://totallyunrelatedrandomanddebatable.blogspot.com/
  57. 57. How do we compare? • Skills / • ProblemsKnowledge • Responsibility http://totallyunrelatedrandomanddebatable.blogspot.com/
  58. 58. Pay for Job• Competency • Problem solving - Knowledge - Complex - Skills - Type of problems - Experience - Special Problems • Responsibility - Authority - Success/Failure - Freedom to act http://totallyunrelatedrandomanddebatable.blogspot.com/
  59. 59. Equity Job CompareOthers •Job Size Outside http://totallyunrelatedrandomanddebatable.blogspot.com/
  60. 60. What to Pay?• Pay for Service• Pay for Job• Pay for Competency• Pay for Performance Exercise: Which ones does your company use for Pay? http://totallyunrelatedrandomanddebatable.blogspot.com/
  61. 61. Pay For SERVICEhttp://totallyunrelatedrandomanddebatable.blogspot.com/
  62. 62. “He has 20 years experience: 1 year of bad experience repeated 20 times” http://totallyunrelatedrandomanddebatable.blogspot.com/
  63. 63. Pay for SERVICE• Loyalty (relevant years of service) This consideration may be rewarded in the following manner :- Descriptions of performance Years in Compa Ratio PositionConsistently 10 years of competent performance in the 10 1.43-1.50positionConsistently 9 years of competent performance in the 9 1.36-1.42positionConsistently 8 years of competent performance in the 8 1.29-1.35positionConsistently 7 years of competent performance in the 7 1.21-1.28positionConsistently 6 years of competent performance in the 6 1.13-1.20positionConsistently 5 years of competent performance in the 5 1.06-1.12positionConsistently 4 years of competent performance in the 4 1.00-1.05position http://totallyunrelatedrandomanddebatable.blogspot.com/
  64. 64. Pay for SERVICE• Seniority (career level on the professional career level) We do not recommend that years of service(Seniority) in the organization be rewarded directly. Years of service must contribute to performance improvement or must lead to structural and content change of the position. In both cases the recognition can be systematically rewarded as explained earlier. http://totallyunrelatedrandomanddebatable.blogspot.com/
  65. 65. Pay For JOBhttp://totallyunrelatedrandomanddebatable.blogspot.com/
  66. 66. DocumentationJOB DESIGN http://totallyunrelatedrandomanddebatable.blogspot.com/
  67. 67. District Engineer, TNB Duties and If stated as Accountabilities then the job Responsibilities must produce :Control, operate and Ensure uninterrupted supply tomaintain the District consumers in the district by operatingDistribution System the District Distribution System. Ensure availability of adequate supply forPlan and design the High future needs of industries in the district byvoltage system planning and designing the High voltage SystemManage major supply Ensure satisfaction of the major customersprojects to customers in in the district by managing supply andthe district. Distribution. Ensure high performance and ProductivitySupervise all technical of technical staff by adopting proper humanstaff in the district. resource management methods on selection, training, coaching, counselling and motivation. http://totallyunrelatedrandomanddebatable.blogspot.com/
  68. 68. Results Driven Activity vs. Accountabilityhttp://totallyunrelatedrandomanddebatable.blogspot.com/
  69. 69. Exercise: Results DescriptionKey Key Activities KPIsResult 1. 1.1. 2. 2. 3. 3. 4. 4. 1. 1.2. 2. 2. 3. 3. 4. 4. 1. 1.3. 2. 2. 3. 3. 4. 4. 1. 1.4. 2. 2. 3. 3. 4. 4. http://totallyunrelatedrandomanddebatable.blogspot.com/
  70. 70. General Manager, ManufacturingKey Results Major Supporting Actions Performance Indicators1. Ensure •By monitoring production performance and •Timely productionachievement taking corrective actions targetsof targeted •By analysing production downtime and •Productivity ratiosproduction introducing improvements •Downtimevolume •By thorough preparation for introduction and •Implementation implementation of new models and variants schedule •2. Ensure •By reviewing quality performance results and •Quality indexachievement identifying non conformance and undertaking •Defect occurrenceof product corrective actions •Non-conformancequality targets •By analysing customer feedback and taking to established corrective actions standards •By undertaking on-line and off-line •Demerit points continuous quality improvement programs and activities •By undertaking education and re-education programs http://totallyunrelatedrandomanddebatable.blogspot.com/
  71. 71. General Manager, ManufacturingKey Results Major Supporting Actions Performance Indicators3. Ensure safe •By incorporating safety and health features •Accident rateand healthy into infrastructure design and development •Health standardsoperating •By creating awareness of safety and health •Operation audit among employees through programs and findingsenvironment campaigns •By constant monitoring of safety and health standards through working committees •By developing and implementing occupational health programs4. Ensure •By developing and implementing on-the-job •Productivity ratioscompetent, training •Turnover ratemotivated and •By developing and promoting effective •Employee moraleproductive communication with employees and union •Team activitiesmanufacturin •By ensuring continuous development and •Strikes /g workforce upgrading of skills disciplinary actions •By providing appropriate recognition and rewards for high performance •By promoting teamwork through QCC and 5s activities http://totallyunrelatedrandomanddebatable.blogspot.com/
  72. 72. General Manager, ManufacturingKey Results Major Supporting Actions Performance Indicators5. Enhance •By ensuring effective and efficient •Operating efficiencyoperating maintenance of plant, machinery and standardsefficiency and resources •Cost per unitproductivity •By reducing wastage and eliminating •Wastages and pilferage losses •By reducing and managing indirect overtime •By managing utilisation of consumables and materials6. Timely •By undertaking effective planning and •Timely completionexecution of provision of resources of projects withinprojects •By monitoring implementation and progress cost allocation of projects •By managing project costs •By developing effective project teams http://totallyunrelatedrandomanddebatable.blogspot.com/
  73. 73. Salary Practice Analysis of Executive Director Positions Market Base Salary Practice of Executive Directors 120,000 100,000 Q3Monthly Base Salary (RM) 80,000 Median 60,000 Q1 y = 7333.3x - 53742 40,000 20,000 0 8 9 10 11 12 13 14 15 16 17 Market Reference Job Grade http://totallyunrelatedrandomanddebatable.blogspot.com/
  74. 74. What is Market Reference Job Grade?Market Reference Job Grade is an observed cluster of similar size jobs. Why Market Reference Job Grade is Needed? Job comparison using job titles would be too rudimentary. Directors are rewarded for responsibilities and accountabilities,therefore remuneration system must be closely linked to job size which reflects the level of responsibilities and accountabilities. http://totallyunrelatedrandomanddebatable.blogspot.com/
  75. 75. Determination of Market Salary Practice Market Salary 14000 PracticeMonthly Base Salary(RM) Line 12000 10000 8000 6000 4000 2000 0 Market Reference Job GradeJob Point Range http://totallyunrelatedrandomanddebatable.blogspot.com/
  76. 76. How Market Reference Job Grade is Determined ? Job Descriptions Organisation StructureCurrent Company Job BusinessGrading Structure evaluation Complexity Revenue/Capital Financial Indicators Employed (Company Size) (Company Size) http://totallyunrelatedrandomanddebatable.blogspot.com/
  77. 77. How job evaluation is conducted CompetencyResults Problem SolvingCreation http://totallyunrelatedrandomanddebatable.blogspot.com/
  78. 78. The ranking method• Jobs are considered as a whole• Reporting relationships or nature of functions or some discernible factors are applied Chief Executive Sales Production Finance Manager Manager Manager Sales Production Accountants Executive Executive http://totallyunrelatedrandomanddebatable.blogspot.com/
  79. 79. The job classification methodWhole jobs are grouped together on the basis that theyseem to be equivalent in size. Chief Executive Sales Production Finance Manager Manager Manager North Production Mgr X Planning, budgeting and project finance South Production Mgr Y Centre Production Mgr Z Management accounting http://totallyunrelatedrandomanddebatable.blogspot.com/
  80. 80. The factor comparison methodWhat are relevant factors? • Know-how • Problem solving - Skills - Job complexity - Experience - Freedom to think - Managerial skills-expertise - Nature of problems - Qualification - Job challenges • Responsibility - Accountability - Freedom to act - Limits of authority - Size of operation http://totallyunrelatedrandomanddebatable.blogspot.com/
  81. 81. The factor comparison method - continuedFactors are measured by comparing one against the other. Knowledge Responsibility Complexity 10 A B 9 A 8 7 B A 6 5 B 4 3 C C 2 1 C A = 10 + 9 + 7 = 26 B = 7 + 5 + 10 = 22 C = 3+1+3 = 7 http://totallyunrelatedrandomanddebatable.blogspot.com/
  82. 82. The point factor method• For each factor a scale is developed.• The factors chosen are tested for reliability and validity. The fundamental job factors are :- –Know-how –Problem solving Competency –Accountability (for results Results creation) Creation Problem Solving http://totallyunrelatedrandomanddebatable.blogspot.com/
  83. 83. Point Factor Method - Job Evaluation• Job Evaluation is a system for rating jobs logically and fairly• Weber’s Law states that job measurement can be achieved up to an accuracy level of 15%• The number pattern used for measurement of jobs is a 15% gap scale, i.e. 57 66 76 87 100 115 132 152 175 200 Most Consultants use these universally accepted job measurement principles http://totallyunrelatedrandomanddebatable.blogspot.com/
  84. 84. Job Factor : Competencies• Competency includes every kind of capability, skill andability that is necessary to produce the key results of the jobat an acceptable level.• It does not matter whether the competency is acquired byformal training in an institute of higher learning or by workingon the job and becoming capable through experience• Competencies can be expressed either bydepth(specialization) or breadth(generalization) http://totallyunrelatedrandomanddebatable.blogspot.com/
  85. 85. Levels of Competency2112 Level Exceptional Mastery1840 11 Unique mastery in a scientific discipline or professional mastery of organisational and institutional systems.16001400 Level Recognised Authority1216 10 Professional Mastery1056 Recognised authority outside one’s organisation in a particular field or mastery of integrative mechanism in a broad area.920 Level Professional Mastery / Specialist800 9 Know-how at a high level700 An authoritative source of knowledge within the organisation. These jobs require accumulated know-how through extensive experience in a particular field of study. Alternatively, these jobs require broad practical knowledge of a variety of concepts and models necessary to engage in goal directed effort involving complex problem situations.608 Level Seasoned Professional level of know-how528 8 Jobs requiring specialist know-how that can be obtained only by years of experience in the relevant field of knowledge. These jobs460 require extensive experience in having used concepts covering a broad area of knowledge in order to resolve problems.400 Level Senior Professional level of know-how350 7 At this level jobs require extensive knowledge covering multiple levels of principles and theoretical models in a particular field or functional304 areas..264 Level Professional level of know-how230 6 This category of know-how ranges from knowledge of principles and concepts to operational knowledge of application of principles and200 concepts.175 Level Basic Principles and Theoretical Models (Junior Professional)152 5 Jobs at this level require knowledge of basic principles and theoretical model that is normally gained through formal study.132115 Level Sub-Professional know-how100 4 This is the know-how level of sub-professionals. Usually 2 - 3 years of study beyond basic schooling is necessary to acquire the 87 competencies involving the required concepts and theoretical principles. Alternatively this level is characterised by several years of working experience to resolve problems76 Level Vocational Skills66 3 This category of know-how is usually referred to as vocational skills. Jobs at this level require procedural knowledge which is provided by57 either job experience or through vocational training.50 Level Procedures43 2 Jobs at this level require knowledge of work routine and experience in using simple tools, equipment and machines.3833 Level http://totallyunrelatedrandomanddebatable.blogspot.com/ Basic Education29 1 The lowest level of know-how which is largely basic education and on the job instruction of work routines.25
  86. 86. Job Factor : Problem Solving ExplanationProblem solving is the application of knowledge required to identify andresolve problems.There are essentially two dimensions to problem situations :-1. the extent to which the problem situation is covered by setprocedures, established standards, company policies and principles andmore generally by guidelines and goals orientation.2. the extent to which the job encounters similar problem situation,differing situations or situations requiring constructive thinking,evaluative judgement or situations requiring the development of newconcepts and generalisation. http://totallyunrelatedrandomanddebatable.blogspot.com/
  87. 87. Levels of Problem Solving528 Strategic Direction460 Level 9 This is the highest level where the job holder is free to engage in any form of problem solving constrained only by the rules of general400 conduct, cultural norms and business philosophy . Jobs of this nature are usually engaged in adaptive thinking of a very high leve and in applyingnew and imaginative approaches .350 Broad Policy Development304 Level 8 This level of jobs engage in problem solving situations with the aim of achieving ultimate goals. The holders are concerned about job264 achieving goal direction, and they areguided by the operating philosophy . A large part of these jobs involve adaptive thinking of a high order.230 Broad Policy Implementation200 Level 7 These jobs are guided by broad policies . However, the problem solving is directed at achieving specific objectives by adaptive thinkin175 The “What” and “ How” i.e. problem definition has to be worked out.152 Defined Policy132 Level 6 This level of jobs are guided in problem solving by clearly defined principles and available policies . The nature of problems115 encountered are such that the “what is” is clear, and a certain degree of adaptive thinking is required to determine solutions.100 Principles87 Level 5 These jobs engage in problem solving based largely onstandards available or principles set . Where procedures are available, they are76 usually unspecified allowing discretion. The nature of the problems encountered are usually resolved by applying learned solutions re very little deductive and extrapolate thinking is required.66 Process / Standards57 procedures and precedents . The nature of the problem presents issues that require on Level 4 These jobs solve problems by the application of50 to search for the answer from among several known alternatives.43 Strict Standards33 procedures and precedents . The nature of the problem is specific and one has to choo Level 3 These jobs solve problems by the application of29 between defined solution alternatives.25 Procedures22 Level 2 This level of jobs are usually “ how to solve their problems and they resolve problem situations working with standard instruction told”1916 Routines14 Level 1 These jobs followdetailed instructions and strict rules of conduct . The job holder is likely to be resolving problems engaged in12 repetitive reaction to problem situations where one has to choose from a given set of solutions. http://totallyunrelatedrandomanddebatable.blogspot.com/
  88. 88. Job Factor : Results Creation ExplanationThis is the element of the job that can be best described as “theaccountability for actions and for the consequence of actions taken”.The more freedom there is in the job to take actions and the more impactthe job has on end results the greater the Results creation element.For example, the job of a General Manager of a business unit can beconsidered as having more impact on end results than the job of aDepartment Manager of the business unit. http://totallyunrelatedrandomanddebatable.blogspot.com/
  89. 89. Levels of Results Creation1056 Strategic Direction920 Level 9 Visionary.800700 Broad Policy Development608 Level 8 Very general guidance from the highest level of the enterprise or organisation. These jobs have a hig528 impact on end results.460 Broad Policy Implementation400 Level 7 These jobs are subjectbroad policies and there are to general guidelines from the highest vel of the le350 enterprise or organisation304 Defined Policy264 functional policies and goals. Level 6 At this level of Freedom to act, the jobs are subject to230200 Principles175 Level 5 specific policies and theyare also subject to general practice of the This level of jobs are subject to152 functional area.132 Process / Standards115 Level 4 These jobs are subject to well defined policies and procedures . Results produced are subject to100 review by Superior. 87 Strict Standards 76 Level 3 These jobs are subject standardised work practices and procedures . Generally supervision over to 66 performance is by close review of progress and results. 57 Procedures 50 Level 2 instruction and prescription of work routine. These jobs are supervised closely by 43 38 Routines 33 detailed work routines and there is little or no room for change. Level 1 This level of jobs are subject to 29 http://totallyunrelatedrandomanddebatable.blogspot.com/
  90. 90. Job Evaluation ResultsThe positions of Executive Chairman and Executive Directors were evaluated basedon the Role and Accountabilities as designed by ConsultantsNo Job Title Results Problem Competency Total Job Creation Solving Job Grade Points Level Points Level Points Level Points 1 Executive 9+ 920 10 700 9 920 2540 14 Chairman 2 Executive 8 608 8+ 350 8 528 1486 12 Directors http://totallyunrelatedrandomanddebatable.blogspot.com/
  91. 91. Job Evaluation Results Problem Competency Result Creation Solving Total Mkt. RefNo. Positions/Company Grade Leve Points Grade Points Level Points Level Points l1. Executive Chairman 9+ 920 10 700 9 920 2540 142. Executive Director 8 528 8+ 350 8 608 1486 123 Executive Director 8 528 8+ 350 8 608 1486 124 Non Executive Directors 8 528 8 304 7+ 460 1292 115 GM, Asia Pacific Centre Sdn Bhd 7 350 7+ 230 6 264 844 96 GM, Marketing 7 350 7+ 230 6 264 844 97 GM, Technical & Quality Assurance 7 350 7+ 230 6 264 844 98 GM, (Sepang) Sdn Bhd 7 350 7+ 230 6 264 844 99 GM, (Niaga) Sdn Bhd 7 350 7+ 230 6 264 844 910 GM, Security Services 7- 304 7 200 6 264 768 811 GM, General Ops 7- 304 7 200 6 264 768 812 GM, Corporate Communications 7- 304 7 200 6 264 768 813 GM, (Technologies) Sdn Bhd 7- 304 7 200 6 264 768 8 GM, Agriculture-Horticulture Sdn14 7- 304 7 200 6 264 768 8 Bhd15 GM, Human Resource 7- 304 7 200 6 264 768 8 GM, Sports UnitSdn16 7- 304 7 200 6 264 768 8 Bhd GM, Mgmt & Technical17 7- 304 7 200 6 264 768 8 Services Sdn Bhd http://totallyunrelatedrandomanddebatable.blogspot.com/18 GM, Public Relations 7- 304 7 200 6 264 768 8
  92. 92. Market Salary Scale Job Mkt General MarketPoints Ref General Problem Freedom to Grade Competencies Solving Act for Q1 Med Q3 Results o Ultimate integration Philosophical and Achievement of 62,100 69,200 88,6004201- through the provision of strategic integration of enterprise philosophy 16above enterprise philosophies very large multibusiness objectives global enterprise3301- o Business integration of Guiding strategic Achievement of 50,600 56,600 71,9004200 15 global enterprise integration of very large enterprise goals and multibusiness global philosophy objectives enterprise 14 o Business integration of Guiding strategic Achievement of 41,300 46,200 58,4002501- very large multibusiness integration of complex enterprise objectives3300 enterprise very large multibusiness and goals group1801- 13 o Enterprise integration Guiding strategic Achievement of 33,600 37,800 47,4002500 and multibusiness sector integration of complex enterprise business leadership issues large objectives and multibusiness unit(s) business goals1481- 12 o Strategic integration of Managing strategic Achievement of 27,400 30,900 38,5001800 the enterprise integration issues of large longer term enterprise business unit(s) goals 11 o Strategic integration of Resolving strategic Achievement of 22,400 25,200 31,3001181- the operations of large integration issues and business objectives1480 business unit of several units creating conditions for cross and strategies functional cooperation. JJob subject to broad goals & 10 broad policies Involved in Strategic business Management of 18,200 20,600 25,400941 determining key results to be management capability or conceptual direction and - achieved by the organization comprehensive integration achievement of goals and1180 both long term and strategic of large but relatively business objectives within results homogenous business units very broad guidelines and resource constraints http://totallyunrelatedrandomanddebatable.blogspot.com/
  93. 93. Results Creation (Freedom to Act)Grade Problem Solving Competency Head of Business Area 22 528 350 608 21 460 304 528 400 264 460 20 350 230 400 19 304 200 350 Sr. Mgr. 264 175 304 Sr. Mgr. Customer 18 Sales Serv. & Quality Sr. Mgr. Sr. Mgr. HR & Sr. Mgr. 230 152 264 17 Service Product Admin A Snr. Mgr. 200 132 230 Sr. Mgr, 16 Training Dist. Job grade as it should be Evaluated new grade
  94. 94. Alternative to Job Evaluation1. Obtain Consultant’s report2. Match internal jobs (+salaries, between 2-5 yrs in the job) to Consultant Report’s Grades and Points System using Mid-Point salary as the reference point 1. E.g.: Admin Executive, RM2,300 -> Grade 3, Mid- Point (450 points); assign 450 points 2. Benchmark about 20%-30% of the jobs3. Cluster or Slot remaining 70% of jobs according to Grading Scale based roughly on 3 factors: 1. Competency, Problem Solving, Results Creation http://totallyunrelatedrandomanddebatable.blogspot.com/
  95. 95. Pay For PERFORMANCEhttp://totallyunrelatedrandomanddebatable.blogspot.com/
  96. 96. Which system should we use? Trait-based Behavior-based Refer: Which Performance Management System Knowledge/Skill based should we use? Activity based Results-basedManaging Performance = Managing Expectations What’s YOUR expectation? http://totallyunrelatedrandomanddebatable.blogspot.com/
  97. 97. Compa Ratio TableUse this if your company:• Pays for Performance, and• Pays for Job ratesDef:Mid-Point = Mid Point of Pay GradeGrade E2 Min MID Max RM2,000 RM2,500 RM3,000 http://totallyunrelatedrandomanddebatable.blogspot.com/
  98. 98. Compa Ratio Analysis – An Indicator of Salary PositionCompa Ratio (CR) =Actual Salary ÷ Mid-Point Salary of the Salary Range 75th Percentile Salary (RM) CR = 1.30 CR = 1.00 CR = 0.70 Job Points http://totallyunrelatedrandomanddebatable.blogspot.com/
  99. 99. Incumbents’ Salary AnalysisIncumbents’ monthly base salaries compared with mid-point salary of therecommended salary range :- Incumbent Mkt Reference Mid Point Salary Current Compa Job Grade for the Market Job Monthly Ratio Grade Base SalaryABC 2 RM RM 1.00 2,6000 2,600Hj XYZ 2 RM RM 1.05 2,600 2,750GHI 2 RM RM 0.75 2,600 2,400 This job grade represents the measured “job size” based on current job accountabilities http://totallyunrelatedrandomanddebatable.blogspot.com/
  100. 100. Compa Ratio Table < 0.7 ≥0.7 - >0.9 - ≥1.1 - > 1.3 ≤0.9 <1.1 ≤1.354321 http://totallyunrelatedrandomanddebatable.blogspot.com/
  101. 101. Compa Ratio Table < 0.7 ≥0.7 - >0.9 - ≥1.1 - > 1.3 ≤0.9 <1.1 ≤1.3543 5%21 http://totallyunrelatedrandomanddebatable.blogspot.com/
  102. 102. Compa Ratio Table < 0.7 ≥0.7 - >0.9 - ≥1.1 - > 1.3 ≤0.9 <1.1 ≤1.35 94 73 9 7 5% 4 32 21 0 http://totallyunrelatedrandomanddebatable.blogspot.com/
  103. 103. Compa Ratio Table < 0.7 ≥0.7 - >0.9 - ≥1.1 - > 1.3 ≤0.9 <1.1 ≤1.35 15 12 9 8 74 12 9 7 5 33 9 7 5% 4 32 6 4 2 1 01 4 2 0 0 0 http://totallyunrelatedrandomanddebatable.blogspot.com/
  104. 104. • Exercise:• Determine your pay grades and salary points (internal or external benchmark?)• Draw your Compa Ratio Table http://totallyunrelatedrandomanddebatable.blogspot.com/
  105. 105. Employee Distinction? < 0.7 ≥0.7 - >0.9 - ≥1.1 - > 1.3 ≤0.9 <1.1 ≤1.35 9 8 7 6 54 8 7 6 5 43 7 6 5% 4 32 6 5 4 3 21 5 4 3 2 1 http://totallyunrelatedrandomanddebatable.blogspot.com/
  106. 106. Employee Distinction? < 0.7 ≥0.7 - >0.9 - ≥1.1 - > 1.3 ≤0.9 <1.1 ≤1.35 20 15 12 8 54 18 12 9 5 33 9 7 5% 4 32 1 1 1 0 01 0 0 0 0 0 http://totallyunrelatedrandomanddebatable.blogspot.com/
  107. 107. Employee Distinction Average Rating Multiply Example Example Rating Factor Rating Increme nt > 4.1 5 2 4.2 8.4%> 3.3 – 4.1 4 1.2 3.5 4.2%> 2.3 – 3.3 3 0.75 2.8 2.1%> 1.3 – 2.3 2 0.5 1.8 0.9% ≤ 1.3 1 0 1.0 0% http://totallyunrelatedrandomanddebatable.blogspot.com/
  108. 108. Job Holder’s Salary Determination Model Step 1 Step 2 Step 3 Performance Rating Descriptions of Years in Salary Personal Rating Recognit Rating performance Position Range Contribution ion (% Descriptions Consistently 8 years of 8 32,756 – Level increme competent performance 33,740 nt)Distinguished 5 in the position Unique 3 10%Commendable 4 Authority Consistently 7 years of 7 31,801 – competent performance 32,755 The individual isCompetent 3 in the position a recognised industry leaderAdequate 2 Consistently 6 years of 6 30,876 – in the field.Entry zone / 1 competent performance 31,800unsatisfactory in the position Significant 2 5% Consistently 5 years of 5 29,976 – The individual competent performance 30,875 brings market- in the position recognised Consistently 4 years of 4 29,101 – characteristics competent performance 29,975 to the job. in the position Consistently 3 years of 3 26,000 – Insignificant 1 0% competent performance 29,100 in the position http://totallyunrelatedrandomanddebatable.blogspot.com/
  109. 109. Job Holder’s Salary DeterminationThe significant compensable elements of the three incumbents are linked belowshowing the related salary decision :- Step 1 Step 2 Step 3Incumbent Mkt Current Mid Incumbent’s Loyalty Personal New New Ref. Monthly Point Performance Characteristics Job Base Salary Salary Compa Current Yrs in Min Sal. % Grade Salary Rating Sal. CR Level Increase Ratio Pst’n Level (RM)ABC 11 RM RM 3 1.05 3 26,000 – 1 0% 27,500 1.05 27,500 26,000 29,100 (current salary already within the range)XYZ 11 RM RM 3 1.05 3 26,000 – 2 5% 28,875 1.11 27,500 26,000 29,100 (current salary already within the range)DEF 11 RM RM 3 1.05 3 1 0% 27,500 1.05 27,500 26,000 26,000 – 29,100 (current salary already within the range) http://totallyunrelatedrandomanddebatable.blogspot.com/
  110. 110. Employee Distinction• Identify POTENTIAL 2 3 4 5PERFORMANCE Group II Group I 5 ( Potential) (Talent Pool) 4 Group IV Group III 3 (Counseling) ( Performance) 2 http://totallyunrelatedrandomanddebatable.blogspot.com/
  111. 111. Curse of the Bell Curve ‘A’ ‘B’ ‘C’ ‘D’ ‘E’Staff Staff Staff Staff Staff http://totallyunrelatedrandomanddebatable.blogspot.com/
  112. 112. Pay For COMPETENCIEShttp://totallyunrelatedrandomanddebatable.blogspot.com/
  113. 113. Position: Secretary Responsibilities + Personal Competencies Differentiating Tasks + Activities Competencies•Typing •Pleasant •Proactive•Manages •Accurate •Initiativecommunications •Is able to take notes •Independent•Keeps short-hand on shorthand and •Integrity (trust)notes typing memo effectively •Creative•Makes •Presentable •Resourcefulness •Appearance •Always excelappointments •Behaviours •Unwavering•Uses the computer •Good manners dedication and•Filing •Courteous commitment•Takes minutes •Diligent •Ability to make simple•Follow-up decisions•Makes coffee •Sensitive to people•Keeps secrets •Positive attitude•Drafts letter•Screens calls The Job Person Characteristics The Superior Performer http://totallyunrelatedrandomanddebatable.blogspot.com/
  114. 114. Competencieshttp://totallyunrelatedrandomanddebatable.blogspot.com/
  115. 115. The appointment of a Senior Manager - an illustrationSelection criteria of the Present Selection Selection Criteria for thepast Criteria FutureMBA Knowledge MBA MBA10 yrs work experience 10 yrs work experience Less than10 yrs work Skills experience I am able to help others I can get others to agree I am an expert Self Concept in doing things right on what is right I have to gain I enjoy contributing as a I enjoy having to get Social Role team player to what is respect of others others to determine right what is right Aggressive or Positive and Positive, enthusiastic submissive Traits proactive and proactive •Achievement & Resourceful power• Personal social powerAggrandizement (persuasion, Motive •Use of technical influencing,• Excessive use of knowledge & reasoning, concernposition power power of for personal(status & authority) persuasion impact) This model provides clarity on job related competencies. http://totallyunrelatedrandomanddebatable.blogspot.com/
  116. 116. Job vs Person Match: District Engineer Mr. A Ms. B M.Eng.10 years as M.Eng.10 years as an an engineer in engineer in Tech.jobs Tech.Jobs. Skills & KnowledgeI like to help my I’ll help if I amteam achieve. Social Role askedI like to learn new I am an Self Conceptthings expert Proactive Traits Aggressive I told them what isI want to do better Motive right http://totallyunrelatedrandomanddebatable.blogspot.com/
  117. 117. Job vs Person Match: Room Sales person Ms. A Ms. B Diploma in Social Diploma in Social Sc. Sc. 5 years as an 5 years as as waitress Admin.clerk Skills & in a hotel KnowledgeI like to meet Social Role I don’t likenew people injusticeI like to learn new Self Concept I am alwaysthings unluckyAssertive Traits AggressiveI want to do better Motive I told them what is - right http://totallyunrelatedrandomanddebatable.blogspot.com/
  118. 118. Superstar Competency Model• Exercise: Develop Your Own “Superstar” Competency Model http://totallyunrelatedrandomanddebatable.blogspot.com/
  119. 119. Competency Target Setting1. Initiative2. Teamwork3. Problem Solving4. Leadership5. Integrity What’s the problem here? http://totallyunrelatedrandomanddebatable.blogspot.com/
  120. 120. Competency Target SettingInitiative1. Minimize problems quickly without needing to be asked2. Seeks personal growth and professional self- development3. Doing more than is required/expected in a job4. Seeks new and improved solutions and approaches to completing assignments5. Looks for opportunities to help others and team http://totallyunrelatedrandomanddebatable.blogspot.com/
  121. 121. • Exercise: Competency Dictionary• (Refer to Workbook for examples) http://totallyunrelatedrandomanddebatable.blogspot.com/
  122. 122. Competency Standards3 Meets behavioral standards consistently. Is a good role model for others.2 Meets behavioral standards some of the time. Needs improvement.1 Does not meet behavioral standards. Require counseling or disciplinary actions. http://totallyunrelatedrandomanddebatable.blogspot.com/
  123. 123. Exercise: CompetencyStandards http://totallyunrelatedrandomanddebatable.blogspot.com/
  124. 124. • The Specialist Career Ladder http://totallyunrelatedrandomanddebatable.blogspot.com/
  125. 125. Career ManagementA professional of the past The new career professional Where is my job I need an GM interesting career Seasoned Manager Manager Professional Senior Professional Asst Mgr Asst Mgr Developing Professional Executiv Developmental e Executive http://totallyunrelatedrandomanddebatable.blogspot.com/
  126. 126. SCL: Specialist CareerLadder Principal Consultant (1) Consultant (4) Specialist (4) Associate Specialist (2) http://totallyunrelatedrandomanddebatable.blogspot.com/
  127. 127. SCL: Specialist Career Ladder •Telco,Principal Consultant (1) •Outsourcing, •Aerospace, Consultant (4) •Biotech, Specialist (4) •Digital media, •Animation, •M&AAssociate Specialist (2) •Financial forensics http://totallyunrelatedrandomanddebatable.blogspot.com/
  128. 128. SCL: Specialist Career LadderGeneral incentives & General qualifying/re-privileges: qualifying criteria:a. Extra monetary incentive a. Meet the competency criteriab. Official Specialist / b. Performance min B, PEDConsultant job title. c. Min. 40 training hr/yearc. Higher external training d. Physical contribution:subsidy limit by company. i Mentoringd. Tie-pin or pin ii Write-upe. Certificate iii Speakingf. Additional benefits iv Multimedia recording v R&D publication / Thesis http://totallyunrelatedrandomanddebatable.blogspot.com/
  129. 129. Part B-2SALARY STRUCTURES ANDSALARY SURVEYS http://totallyunrelatedrandomanddebatable.blogspot.com/
  130. 130. • Refer to Benchmarking and Surveys (Workbook) http://totallyunrelatedrandomanddebatable.blogspot.com/
  131. 131. Options to Develop Salary Structure1. Self – using JE System 1. -> match Job Points ranges to Consultant’s scale 2. Better internal equity, not externally competitive2. Adopt Consultant’s structure 1. -> match internal jobs to new structure 2. Bad internal equity, externally competitive http://totallyunrelatedrandomanddebatable.blogspot.com/
  132. 132. Salary Structures1. Narrow Band – 40%-60% between min/max2. Broad Band– 100%-200% between min/max3. Specialist Ladder http://totallyunrelatedrandomanddebatable.blogspot.com/
  133. 133. Broad BandPros Cons1. Streamlines Hierarchy 1. No Awareness of2. Facilitates Internal External Market Rates Movement 2. May Lead to Inequities3. Managers have greater 3. Lack of Cost Controls latitude to pay what they 4. Severe reduction in want to an employee opportunities for promotions http://totallyunrelatedrandomanddebatable.blogspot.com/
  134. 134. Part B-3VARIABLE AND INCENTIVESCHEMES http://totallyunrelatedrandomanddebatable.blogspot.com/
  135. 135. Incentive Scheme Design Agenda 1. Objective 2. Situation Analysis 3. Target Areas to be improved 4. Current Incentive 5. Recommended KPIs 6. Proposed Incentive Scheme 7. Improving Performancehttp://totallyunrelatedrandomanddebatable.blogspot.com/
  136. 136. Objective?1. What are you trying to achieve?2. How to measure?3. What is the Gap? http://totallyunrelatedrandomanddebatable.blogspot.com/
  137. 137. Target group?The following positions are eligible to participate in thisscheme: http://totallyunrelatedrandomanddebatable.blogspot.com/
  138. 138. Situation Analysis?1. Retention?2. Working environment?3. The current basic pay?4. Teamwork?5. Supervision/Leadership style?6. Attitude?7. Turnover issues?8. Absenteeism? http://totallyunrelatedrandomanddebatable.blogspot.com/
  139. 139. Target areas to be improved?1. Increase/Decrease the basic pay?2. Fixed costs?3. Incentives tied to… ??4. Absenteeism?5. Quality improvement?6. Easily understood by employee? http://totallyunrelatedrandomanddebatable.blogspot.com/
  140. 140. Current incentives?http://totallyunrelatedrandomanddebatable.blogspot.com/
  141. 141. Recommended KPIs to be incentivisedOutput Skill (Proficiency) Behavioural (Attitude)•Manpower productivity •Job Specific Skills •Punctuality•Operational Cost •Absenteeism/Attenda•Safety and nceEnvironment •Teamwork•Quality (e.g. •TurnoverDefect/unit)•Volume http://totallyunrelatedrandomanddebatable.blogspot.com/
  142. 142. Proposed incentive scheme1. Fixed Salary Proportion (Fixed Personal Income, Variable Team Bonus)Total Payout= Fixed Quantum + Team Based Bonus http://totallyunrelatedrandomanddebatable.blogspot.com/
  143. 143. Proposed incentive scheme1. Fixed Salary Proportion (Fixed Personal Income, Variable Team Bonus)Example:1. Budgeted incentive = 5.8 months of basic payroll2. Fixed Quantum = 0.4 months (for example) [4.8 mths ÷12]3. Monthly Total Payout = Basic Pay + Fixed Quantum = RM500 + 0.4 months = RM500 + RM200 = RM7004. Amount available for bonus = 5.8 months - 4.8 months = 1.0 month http://totallyunrelatedrandomanddebatable.blogspot.com/
  144. 144. Proposed incentive scheme 1. Fixed Salary Proportion (Fixed Personal Income, Variable Team Bonus)Annual Bonus Incentive Matrix Production Operator Team Leader Group Leader TeamPerformance Rating Annual Bonus Annual Bonus Annual Bonus 5 1.50 months 2.00 months 2.50 months 4 1.25 months 1.75 months 2.25 months 3 1.00 months 1.50 months 2.00 months 2 0.75 months 1.25 months 1.75 months 1 0.00 months 0.00 months 0.00 months http://totallyunrelatedrandomanddebatable.blogspot.com/
  145. 145. Proposed incentive scheme2. Two-tier Multiplier (Variable Personal Income, Variable Team Bonus) Total Payout = Basic Pay + Monthly Personal Target Achievement + (Personal Target Achievement x Team Performance Multiplier) Monthly Incentive Payout Matrix Personal Rating Monthly Incentive 5 1.2 months 4 1.0 months 3 0.8 months 2 0.5 months 1 0.0 months http://totallyunrelatedrandomanddebatable.blogspot.com/
  146. 146. Proposed incentive scheme 2. Two-tier Multiplier (Variable Personal Income, Variable Team Bonus)Example: Production Operator Monthly Basic Pay (RM) PersonalPerformance Rating 500 550 600 650 700 750 800 5 1,100 1,210 1,320 1,430 1,540 1,650 1,760 4 1,000 1,100 1,200 1,300 1,400 1,500 1,600 3 900 990 1,080 1,170 1,260 1,350 1,440 2 750 825 900 975 1,050 1,125 1,200 1 500 550 600 650 700 750 800 http://totallyunrelatedrandomanddebatable.blogspot.com/
  147. 147. Proposed incentive scheme 2. Two-tier Multiplier (Variable Personal Income, Variable Team Bonus)Annual Bonus Incentive Matrix Production Operator Team Leader Group LeaderPersonal Rating Monthly Incentive Monthly Incentive Monthly Incentive 5 1.2 months 1.70 months 2.20 months 4 1.0 months 1.50 months 2.00 months 3 0.8 months 1.30 months 1.80 months 2 0.5 months 1.00 months 1.50 months 1 0.0 months 0.00 months 0.00 months http://totallyunrelatedrandomanddebatable.blogspot.com/
  148. 148. Proposed incentive scheme2. Two-tier Multiplier (Variable Personal Income, Variable Team Bonus) Annual Bonus Incentive Matrix (in months) Team Performance 5 4 3 2 1 Personal Performance 5 2.4 1.8 1.2 0.6 0 4 2 1.5 1 0.5 0 3 1.6 1.2 0.8 0.4 0 2 1 0.75 0.5 0.25 0 1 0 0 0 0 0 http://totallyunrelatedrandomanddebatable.blogspot.com/
  149. 149. Proposed incentive scheme 3. Team Ratio Plan (Team-based Income, No Annual Bonus) Total Payout = Basic Pay + Monthly Incentive Payout (No Annual Bonus)Monthly Incentive Payout Matrix Production Staff Team Leader Group Leader Team Rating Monthly Incentive Monthly Incentive Monthly Incentive 5 2.00 months 2.25 months 2.50 months 4 1.50 months 1.75 months 2.00 months 3 1.20 months 1.45 months 1.70 months 2 0.75 months 1.00 months 1.25 months 1 0.00 months 0.00 months 0.00 months http://totallyunrelatedrandomanddebatable.blogspot.com/
  150. 150. Proposed incentive scheme 3. Team Ratio Plan (Team-based Income, No Annual Bonus)Example: Production Operator Monthly Basic Pay (RM) TeamPerformance Rating 500 550 600 650 700 750 800 5 1,500 1,650 1,800 1,950 2,100 2,250 2,400 4 1,250 1,375 1,500 1,625 1,750 1,875 2,000 3 1,100 1,210 1,320 1,430 1,540 1,650 1,760 2 875 963 1,050 1,138 1,225 1,313 1,400 1 500 550 600 650 700 750 800 http://totallyunrelatedrandomanddebatable.blogspot.com/
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