Are you looking for a tried and true methodology for designing or updating your compensation plans? Join us for an exclusive presentation with global compensation consultant John Rubino who will present a successful approach for developing an effective and competitive base salary program.
In this webinar you will learn how leading global organizations are designing compensation plans to better utilize available budgets with a more strategic and streamlined approach. All of the necessary components will be discussed, including:
· Effective & compliant job descriptions that actually work;
· The best approaches and compensation metrics for analyzing pay & making decisions
· Quantitative tools for creating a competitive base salary structure;
· Incentive pay plan essentials - designing plans that drive productivity & retention
· Variable pay: how it works and are you ready for it.
Building a Compensation Plan Part 2: Develop a Market-Based Pay StructurePayScale, Inc.
HR leaders aiming to develop and maintain pay ranges within their organizations face a Goldilocks problem. If too narrow, the pay ranges won’t allow an organization to reward long-tenured staff or high performers. Too broad, and the pay ranges won’t provide practical support for your compensation philosophy. But, worst of all, having no ranges at all can lead to a failure to attract top talent, or dramatically overpaying employees.
So, how can you get pay ranges just right?
Join us as Stacey Carroll, CCP, SPHR, reveals how to develop ranges from a market-centered midpoint.
You’ll learn:
How to use market data to update or create competitive pay ranges.
How to select a competitive market set for benchmarking against.
How to choose benchmark positions and slot non-benchmark positions into your structure.
This practical webinar will give you the information necessary to update or create market ranges in your organization.
In this presentation, Mykkah Herner, a member of PayScale's compensation consulting team, will show you how to build ranges from a market-centered midpoint, and how to use market data to update or create market based pay ranges.
You’ll learn how to identify appropriate sources of market data, select an appropriate “market set” for utilizing market data, choose benchmark positions and slot non-benchmark positions into your pay structure, and create a strategy for dealing with “hot” jobs that fall outside of internal ranges.
A major piece of a company\'s operating budget is spent on compensation. Getting it right - designing an effective compensation strategy to attract, engage, and retain the right people - and leveraging that major investment are key to running a successful enterprise.
This interactive session will address the questions and topics below:
Where do we begin?
Define the basic building blocks for an effective compensation strategy
How do we build a fair compensation plan, using market analysis, salary ranges and pay administration guidelines?
How do we build and implement a compensation plan and integrate it with our business plan?
Learn from experts in the field who will identify how to develop and implement a compensation package to attract, retain and compensate your most valuable resource - human capital!
This will be an interactive, information packed seminar where you will learn techniques on how to develop and implement your total compensation plan.
How to Build Pay Grades and Set Salary RangesShelley Reece
In today’s changing workforce, having a clearly defined career path is becoming critical for attracting and retaining top talent. Setting pay ranges and grades can give you a competitive advantage in an ever-changing market by enabling clear job progression as well as competitive pay. So how can you set your pay ranges just right?
Join PayScale’s compensation experts as they show you how to build ranges from a market-centered midpoint, and how to use market data to update or create market-based pay ranges.
Recording: https://www.humanresourcestoday.com/webinar-series/how-to-build-pay-grades-and-set-salary-ranges/
This is a class long project to design and implement a compensation system based on a company profile, market data, and current pay data. Our goal was to redesign the compensation structure to better align with the business objectives of the company. All data and analysis was stored in an Access database.
Building a Compensation Plan Part 2: Develop a Market-Based Pay StructurePayScale, Inc.
HR leaders aiming to develop and maintain pay ranges within their organizations face a Goldilocks problem. If too narrow, the pay ranges won’t allow an organization to reward long-tenured staff or high performers. Too broad, and the pay ranges won’t provide practical support for your compensation philosophy. But, worst of all, having no ranges at all can lead to a failure to attract top talent, or dramatically overpaying employees.
So, how can you get pay ranges just right?
Join us as Stacey Carroll, CCP, SPHR, reveals how to develop ranges from a market-centered midpoint.
You’ll learn:
How to use market data to update or create competitive pay ranges.
How to select a competitive market set for benchmarking against.
How to choose benchmark positions and slot non-benchmark positions into your structure.
This practical webinar will give you the information necessary to update or create market ranges in your organization.
In this presentation, Mykkah Herner, a member of PayScale's compensation consulting team, will show you how to build ranges from a market-centered midpoint, and how to use market data to update or create market based pay ranges.
You’ll learn how to identify appropriate sources of market data, select an appropriate “market set” for utilizing market data, choose benchmark positions and slot non-benchmark positions into your pay structure, and create a strategy for dealing with “hot” jobs that fall outside of internal ranges.
A major piece of a company\'s operating budget is spent on compensation. Getting it right - designing an effective compensation strategy to attract, engage, and retain the right people - and leveraging that major investment are key to running a successful enterprise.
This interactive session will address the questions and topics below:
Where do we begin?
Define the basic building blocks for an effective compensation strategy
How do we build a fair compensation plan, using market analysis, salary ranges and pay administration guidelines?
How do we build and implement a compensation plan and integrate it with our business plan?
Learn from experts in the field who will identify how to develop and implement a compensation package to attract, retain and compensate your most valuable resource - human capital!
This will be an interactive, information packed seminar where you will learn techniques on how to develop and implement your total compensation plan.
How to Build Pay Grades and Set Salary RangesShelley Reece
In today’s changing workforce, having a clearly defined career path is becoming critical for attracting and retaining top talent. Setting pay ranges and grades can give you a competitive advantage in an ever-changing market by enabling clear job progression as well as competitive pay. So how can you set your pay ranges just right?
Join PayScale’s compensation experts as they show you how to build ranges from a market-centered midpoint, and how to use market data to update or create market-based pay ranges.
Recording: https://www.humanresourcestoday.com/webinar-series/how-to-build-pay-grades-and-set-salary-ranges/
This is a class long project to design and implement a compensation system based on a company profile, market data, and current pay data. Our goal was to redesign the compensation structure to better align with the business objectives of the company. All data and analysis was stored in an Access database.
How to Build Pay Grades and Set Salary RangesPayScale, Inc.
In today’s changing workforce, having a clearly defined career path is becoming critical for attracting and retaining top talent. Setting pay ranges and grades can give you a competitive advantage in an ever-changing market by enabling clear job progression as well as competitive pay.
So how can you set your pay ranges just right?
In this webinar we show you how to build ranges from a market-centered midpoint, and how to use market data to update or create market-based pay ranges.
You’ll learn how to:
Build pay structures from the ground up
Choose benchmark positions and slot non-benchmark positions into your pay structure
Adjust and align your structure for special internal considerations
Create a strategy for dealing with “hot” jobs that fall outside of internal ranges
Presenting this set of slides with name - Compensation Management Powerpoint Presentation Slides. This complete deck is oriented to make sure you do not lag in your presentations. Our creatively crafted slides come with apt research and planning. This exclusive deck with thirtythree slides is here to help you to strategize, plan, analyse, or segment the topic with clear understanding and apprehension. Utilize ready to use presentation slides on Compensation Management Powerpoint Presentation Slides with all sorts of editable templates, charts and graphs, overviews, analysis templates. It is usable for marking important decisions and covering critical issues. Display and present all possible kinds of underlying nuances, progress factors for an all inclusive presentation for the teams. This presentation deck can be used by all professionals, managers, individuals, internal external teams involved in any company organization.
Building a Business Case to Support Your RPO DecisionHROAssoc
This webinar explores key RPO business case concepts and showcase an innovative recruiting cost modeler to help you overcome challenges associated with creating a holistic business case for recruitment process outsourcing (RPO).
Webinar highlights:
• Provides a holistic analysis of your current state recruiting program
• Contributes to the development of a solid Recruitment Process Outsourcing (RPO) business case
• Provides a step by step approach to streamlining your communication for your RPO business case to leaders within your organization
• Uses intellectual capital and solution architect expertise gained over numerous RPO solutions and implementations
Presenters:
• Dawn Pellar, Global RPO consultant currently a member of IBM’s Global Process Services Group for HRO
• Valerie Egan, Head of Resourcing-North America for Linde
How to Build Pay Grades and Set Salary RangesPayScale, Inc.
In today’s changing workforce, having a clearly defined career path is becoming critical for attracting and retaining top talent. Setting pay ranges and grades can give you a competitive advantage in an ever-changing market by enabling clear job progression as well as competitive pay.
So how can you set your pay ranges just right?
In this webinar we show you how to build ranges from a market-centered midpoint, and how to use market data to update or create market-based pay ranges.
You’ll learn how to:
Build pay structures from the ground up
Choose benchmark positions and slot non-benchmark positions into your pay structure
Adjust and align your structure for special internal considerations
Create a strategy for dealing with “hot” jobs that fall outside of internal ranges
Presenting this set of slides with name - Compensation Management Powerpoint Presentation Slides. This complete deck is oriented to make sure you do not lag in your presentations. Our creatively crafted slides come with apt research and planning. This exclusive deck with thirtythree slides is here to help you to strategize, plan, analyse, or segment the topic with clear understanding and apprehension. Utilize ready to use presentation slides on Compensation Management Powerpoint Presentation Slides with all sorts of editable templates, charts and graphs, overviews, analysis templates. It is usable for marking important decisions and covering critical issues. Display and present all possible kinds of underlying nuances, progress factors for an all inclusive presentation for the teams. This presentation deck can be used by all professionals, managers, individuals, internal external teams involved in any company organization.
Building a Business Case to Support Your RPO DecisionHROAssoc
This webinar explores key RPO business case concepts and showcase an innovative recruiting cost modeler to help you overcome challenges associated with creating a holistic business case for recruitment process outsourcing (RPO).
Webinar highlights:
• Provides a holistic analysis of your current state recruiting program
• Contributes to the development of a solid Recruitment Process Outsourcing (RPO) business case
• Provides a step by step approach to streamlining your communication for your RPO business case to leaders within your organization
• Uses intellectual capital and solution architect expertise gained over numerous RPO solutions and implementations
Presenters:
• Dawn Pellar, Global RPO consultant currently a member of IBM’s Global Process Services Group for HRO
• Valerie Egan, Head of Resourcing-North America for Linde
The 2016 Compensation Best Practices Report found that 73% of employers consider their employees fairly paid, yet only 36% of employees feel they are paid fairly.
As more states look into creating fair pay laws the notion of equal pay is beginning to expand beyond gender into other protected areas. So what is the link between equal pay and fair pay, and how can organizations best achieve fair pay?
Join PayScale as we discuss:
- What current protections exist for equal pay
- What is fair pay and why does it matter
- How do organizations really reward people fairly
Each month, join us as we highlight and discuss hot topics ranging from the future of higher education to wearable technology, best productivity hacks and secrets to hiring top talent. Upload your SlideShares, and share your expertise with the world!
Not sure what to share on SlideShare?
SlideShares that inform, inspire and educate attract the most views. Beyond that, ideas for what you can upload are limitless. We’ve selected a few popular examples to get your creative juices flowing.
Get Pay Right with PayScale Insight ExpertPayScale, Inc.
Watch this 30 minute webinar, as we demonstrate how to get pay right - the PayScale way.
-Be confident in your pay decisions with access to pay data that's updated daily.
-Price your job positions according to skills, experience, and local market trends.
-Save the aging for your wine – PayScale’s data is real-time and always at market.
If you're creating, maintaining, or revamping a comp strategy, you won't want to miss this presentation.
payscale.com/hr
We invite current PayScale customers to join us for a special 30-minute webinar tour of PayScale Insight Expert that will show you how much you can grow with Insight Expert professional services.
Most of the small, emerging (SME's) organization 's CEO or Business heads have a challenge on "PEOPLE MANAGEMENT."
When the business head does not plan and execute the people management process effectively, the organization suffers from slipping deliveries, quality issues, increase in human resources cost, IR related problems and eventually all those failures affecting the business profitability and growth.
The solutions call for a holistic approach to all aspects of the people management process, and this presentation attempts to give some perspectives from my experience with SME's in different regions.
Recently I shared this presentation in one of the SME 's CEO forum and received a lot of interaction and appreciation.
Hope this helps for business heads / CEO's
Strategy Mapping PowerPoint Presentation Slides is a custom virtual solution for management teams from all domains. This graphically-rich balanced scorecard methodology PowerPoint template deck assists you in strategy mapping. Represent strategic management goals with the help of the cutting-edge design of this PPT theme. Insightful data visuals make bland info interesting. This presentation piques the attention of the viewer allowing him to develop a deeper understanding of the subject. Employ flowcharts, dashboards, and other diagrams to add a visual layer in your balanced strategy planning PowerPoint presentation. Elucidate the essentials of effective BSC strategic planning. Convey the need, perspectives, and implementation of the BSC management technique. Further, this PowerPoint deck features easy-to-understand balanced scorecard strategy map representation. Consolidate scorecards department-wise. Use our professionally crafted PPT templates to highlight the BSC execution framework. Smash the download button on this business performance management PowerPoint theme to build a methodical and informative presentation within moments. Our Strategy Mapping PowerPoint Presentation Slides are explicit and effective. They combine clarity and concise expression. https://bit.ly/3992qXK
Semi Standard Structured Report PowerPoint Presentation SlidesSlideTeam
It has PPT slides covering wide range of topics showcasing all the core areas of your business needs. This complete deck focuses on Semi Standard Structured Report PowerPoint Presentation Slides and consists of professionally designed templates with suitable graphics and appropriate content. This deck has total of twenty slides. Our designers have created customizable templates for your convenience. You can make the required changes in the templates like colour, text and font size. Other than this, content can be added or deleted from the slide as per the requirement. Get access to this professionally designed complete deck PPT presentation by clicking the download button below. https://bit.ly/3gfJIi5
HR Professional should be able to establish a Market – Competitive Pay structure. No doubt, SMEs and startups cannot compete with more giant corporations when it comes to offering glamorous salary packages and benefits. Make sure you provide a competitive salary and contribute as many benefits to your team as possible, such as health insurance, life insurance, retirement plans, extra.
How to Ensure that Rewards Drive Growth
If you run a business, it’s likely you see a future company that is bigger and better than the present enterprise. You also probably recognize that to fulfill that vision, pay will have to play a strategic role. Growth will not be achieved simply because you’re paying a competitive salary, have a group medical plan and/or allow your employees to contribute to a 401(k) plan. Rather, you recognize growth goals are achieved when an employee feels "invested" in the results the company seeks to fulfill. So how do you use pay to help accomplish that? What role should it play and what components should it include? To find out the answer to these and other related questions, you will not want to miss this presentation.
Build a strategic management tool for your business in the form of this exclusive balance scorecard PowerPoint presentation slides. Use this balance scorecard PPT design to describe different prospective of your organization which are described as financial perspective, customer or investors perspective, organizational growth perspective and the internal process perspective. This Balanced Scorecard PPT layout explains the essential uses of the maintaining the balance scorecard for strategically developments of your organization as it also helps in analyzing various functions of your business and explains other factors which may affect the growth rate of your organization. This Balanced Scorecard presentation template will work as an effective management strategic tool to manage as well as monitor the strategic targets for the company. Thus you are just a click away from owning this professional designed PowerPoint image for your business to explain your subject matter in a very ingenious way. Gaze into the crystal ball with our Balanced Scorecard PowerPoint Presentation Slides. They give you the gift of foresight.
There are a number of complicated laws and regulations that organizations must adhere to relating to comparable worth and equal pay. While compliance is important, most organizations do not have an effective way to administer these rules on an ongoing basis.
Workforce volatility can profoundly impact productivity for individuals, departments or across entire organizations. From competitive job markets to rising employee turnover, there’s a common way employers of any size, in any industry, can overcome these workforces challenges – strategic compensation.
When you pay your employees right, you remove barriers to organizational success by attracting and retaining the best talent for your organization. The challenge is that most organizations are faced with a volatile regulatory environment, decreasing salary budgets, increasing turnover, ineffective performance-based pay programs and a challenging labor market.
The next five years are poised to bring more changes to the design and implementation of Total Rewards systems than we’ve seen in the last 20 years. Conventional approaches of organizations developing their own talent have been replaced with a “free agency” model of buying experience from competitors, which in turn ratchets up labor costs. This also creates more pressure to retain and engage existing employees and attract new employees through an improved employee value proposition.
Pay transparency is becoming an increasingly important and challenging issue for organizations to address. There is growing pressure to disclose compensation information, not only at the executive-level, but at the employee-level as well. Regulators and those with vested interests are placing new demands on organizations to reveal data that has typically been kept confidential.
HR technology expert Jacqueline Kuhn shares tips on how the various types of HR technology systems can be leveraged for planning and monitoring your total rewards strategy. Get insider tips on how to select the best total rewards technology for your organization along with best practices for implementation and adoption to ensure your system successfully increases engagement and lowers turnover costs for your organization.
Practical Tips for Reducing Compensation Cycle Time & Stress. The presentation provides practical, executable advice and techniques that have been proven to work regardless of company size, location. The types of compensation plans you use are also unimportant when learning these new skills. Learn how to plan for nearly everything and see why you may have had problems in the past, and what you can do about them in the future.
Retaining top talent is an art and at times can be costly. Check out these top pre & post hiring strategies to ensure you are doing all you can to be efficient & retain your top employees.
With all of the applications and technology out there in the HR space, presenter Rick Barfoot shows you how to Effectively Connect HR Cloud Applications To Save Time & Money.
The DOL has published its final rules on Exemption and New Overtime Rules which President Obama predicts 4 to 5 million additional workers will be eligible for overtime pay. The effective date for the new rules is December 1, 2016 and healthcare employers need to start now to assess their current position classification levels and understand the various options to ensure compliance of the new rules by the effective date. This webinar will provide insight to the current and new rules and steps a healthcare employer will need to take to meet the new rules.
Total compensation statements are a great tool to drive employee engagement and retention - the problem is that traditional printed annual statements are not only outdated from the time they are printed but are expensive and time consuming to produce for HR teams with limited resources.
In these slides, former Director of HRIS & HR Operations for Silicon Valley Bank Christopher Ford will share how leading HR departments are transforming an outdated compensation statement process into a value-driven total rewards system that generates measurable improvement in engagement at a lower cost.
The DOL has published its final rules on Exemption and New Overtime Rules which President Obama predicts 4 to 5 million additional workers will be eligible for overtime pay. The effective date for the new rules is December 1, 2016 and employers need to start now to assess their current position classification levels and understand the various options to ensure compliance of the new rules by the effective date. This webinar will provide insight to the current and new rules and steps an employer will need to take to meet the new rules.
Total Rewards encompasses a broad range of offerings from tangible (pay and benefits) to less quantifiable (policies, practices, flexibility) benefits, all of which are designed to attract and retain top talent. The challenge Compensation and Rewards professionals face today is finding a way to communicate the value of employment to an expanding number of employment roles in extremely competitive job markets coupled with rising turnover costs and decreasing engagement.
In this exclusive training webinar, special guest Tony Kerekes will share inside strategies from his 20+ years of designing and implementing total rewards programs for leading organizations. Get insights and ideas on how to adapt to the changing workforce and job market (contractors and freelancers will be 40% of the workforce) with a more effective total rewards program that gets results.
In this practical, “how to” webinar you’ll learn:
· Keys to building an effective total rewards engagement strategy (for employees, contractors and freelancers)
· How to develop a calendar of just-in-time communication (that you can keep up with)
· Tips and strategies for communicating total rewards to today’s workforce
· How to leverage varied communication styles and approaches
· How to turn total rewards into retention
Everyone knows that sending an employee off on an international assignment is an expensive proposition, but those big bucks are only the tip of the iceberg as to what can go wrong. And when things do go wrong you're still find yourself paying out the same dollars. In our session we'll be exploring how to go about creating a win-win scenario for both the company and the assignee - and where the problems are laying in wait to mess things up. If you follow a few basic guidelines, what we call rules of the road, your organization can avoid a great many of the failures that so often plague this experience.
A few key points to be discussed:
- Why the experience is so complex and costly
- Determining the business case for the assignment
- How the candidate selection process can doom you from the start
- Having a policy and following it
- The devil is in the details
- The assignee's perspective
More from HRsoft - Talent Management Software (20)
4. Comp Planning Pros: How To
Design A Cash Compensation
Program For Global & Growing
Organizations
John A. Rubino
President, Rubino Consulting Services
rubinoconsulting.com
rubinoconsulting@aol.com
5. Internally equitable
Externally competitive
Affordable
Understandable
Legal/defensible
Efficient to administer
Capable of being
reshaped for the future
Appropriate for the
organization
Attract, retain and
motivate employees
Create alignment of
employee efforts and
business objectives
6. Job Content
Evaluation
Data Collection
and Analysis
Job Content
Evaluation
Base Pay Structure
Job Worth Hierarchy
Data Collection
and Analysis
Reconciliation of Internal
and External Considerations
Market Data Emphasis Job Content Emphasis
Job Documentation
Job Evaluation
Job Analysis
8. Job
Descriptions
• Developing a job worth hierarchy
• Identification of performance
standards
• Organizational design uses
• Salary survey exchanges
• Legal defenses
• Job assignments
• Selection/recruitment
• Establishment of career paths
and succession planning
9. *These are components which should be included or implied
in all job descriptions used for job evaluation and market pricing.
Job titles
Job group category
Reporting relationships
General summary*
Principal duties and
responsibilities*
Job specifications*
Working conditions*
Disclaimer statement
Dates and approvals
11. Why are salary surveys used?
• Price jobs and determine market positions
• Diagnose compensation problems
• Analyze pay trends
• Establish job worth hierarchies
12. Individual company data should not be identified
- aggregate data is the norm
Includes an executive summary
Match your organization’s benchmark jobs
One benchmark job is not matched to two
different job titles
13. Factors
Sample size, participant base, statistical analyses,
survey methodology, job-matching procedures
Acquiring data
Published surveys, utilize third parties, design and
conduct custom surveys, acquire web-based data
14. Commonly found and defined
A benchmark job is a job that is commonly found in
many organizations and used to make pay
comparisons
Data available in surveys
Pay data for these jobs are readily available in
published surveys
15. Internal jobs that serve as anchor points
At least 70% match of duties to the market
Characteristics
◦ Easily defined
◦ Representative of all levels
◦ Important to internal hierarchy
◦ At least 50% of jobs in an organization should be
identified as benchmark jobs
16. Data Collection
Method Cost Time Reliability Confidentiality
Published Low Fast
High/
Medium
High
Third-party
custom
High
Slow to
Medium
High High
Conducting
your own
Low Slow
High/
Medium
Low
Free None Fast Low ?
17. Pay range
◦ Maximum
Most paid for the job
◦ Midpoint
Competitive rate
◦ Minimum
Least paid for the job
Max
Mid
Min
23. A tool to help visualize
the distribution of data
Based upon P10, P25, P50,
P75, P90 and the mean (x)
Can indicate the shape
of the distribution
57.20 (P90)
45.50 (P75)
33.35
30.00 (P50)
65
60
55
50
45
40
35
30
25
20
15
10
5
0
21.50 (P25)
16.80 (P10)
28. Discussion Exercise Example
Example
Benchmark Job Internal Value Current Pay Market Wage
Receptionist 140 21,900 23,000
Admin. Asst. 194 30,400 27,300
Staff Accountant 217 34,100 34,900
HR Generalist 281 44,100 49,000
Payroll Supervisor 310 48,700 43,000
Marketing Mgr. 432 67,900 62,100
Employment Mgr. 480 75,300 73,200
Dir. Of Operations 627 98,400 102,700
Dir. of Finance 925 145,200 138,000
Sr. VP of Sales 980 153,800 152,000
29. Wage Survey Trend Line
Current Company Trend Line
Internal Job Value
Average company rate for job
Average market rate for job
MonetaryValue
30. y = pay
x 1 = experience
x 2 = performance level
x 3 = education
etc.
a intercept
x 1,x 2,x 3 critical factors
b 1,b 2,b 3 slopes (i.e., regression weights)
of critical factors
kk332211 xbxbxbxbay ++++=
32. Percent Pay Increase
as a Function of Both Performance and Compa-Ratio
(3-Dimensional Scatterplot)
PayIncrease
10
9
8
7
6
5
4
3
2
1
Performance
6.0
5.0
4.0
3.0
2.0
1.0
Compa-Ratio
1.2
1.1
1.0
0.9
33. Can this be accomplished by
using a Base Salary “Merit”
Increase Program?
34. It’s a zero-sum game - and the budget is small
Performance evaluation scores are all relative
All employees exceeded their performance objectives
- now what?
Base salary increases are now and forever!
Is Old Joe motivated?
36. Organizational culture and values must support a
performance/reward framework: instilling a ‘sales mentality’
Compensation policies and programs must be aligned with
the organization’s strategic objectives
Senior management must allow the variable pay program to
work
Should have ‘pay by example’ at the top of the organization
Must be internally equitable and externally competitive
Variable pay program must deliver what is promised on time
and fairly
37. Plan design should guard against ‘windfall’ payments
Performance criteria must be discernible, valid and
understandable
Variable payouts must be aligned with performance criteria
achievement
Variable opportunities must be perceived as ‘valuable
enough’ to motivate performance.
Timing of payout allocations should be as close as possible
to the qualifying event
If designed and implemented properly, variable payouts to
employees will yield ‘slices from an expanding financial pie’
38. Middle managers will make or break the variable pay
program.
Should involve managers in variable pay program design and
performance criteria identification
Must build trust and get buy-in from managers and
employees through effective training and communication
A well-designed and executed variable pay program can
improve the organization’s bottom line
Measurable benefits can include improved: morale,
productivity, quality, customer service, on-time performance,
work methods, etc., etc., etc.
39. Remove performance considerations from base salary increase
decisions – pay for performance within the variable pay
framework.
Re-define base salary increases as across-the-board market
adjustments only, determined by competitive position analyses.
The difference between the base salary “merit” budget and the
market adjustment factor can be used to partially fund the
incentive program. (Will not be fully-funded the first year;
requires an “investment” on the part of the organization)
On-going “fixed” expenses can be considerably reduced due to
the compounding effect of base salary increases.
Variable compensation is paid in lump sum only when
performance warrants: “pay at risk”.
41. Without question, comprehensive variable pay
programs will continue to be the U.S. and global
trend (for those organizations that are culturally
ready).
An increasing number of organizations will adopt a
simplified market-based salary approach to
determine base salary control points and pay
increases.
Employee performance objectives will be removed
from base salary determination, and placed
entirely within the comprehensive variable pay
program, paid in lump sum.
42. Comp Planning Pros: How To
Design A Cash Compensation
Program For Global & Growing
Organizations
John A. Rubino
President, Rubino Consulting Services
rubinoconsulting.com
rubinoconsulting@aol.com