The Path to Pay for Performance Joe Brown Slope Resources Nonprofit HR Symposium San Diego, CA June 16, 2010
<ul><li>Founded in 1998 </li></ul><ul><li>Human resources and organization management consulting services for nonprofits <...
<ul><li>How many utilize… </li></ul><ul><ul><li>Formal pay for performance program </li></ul></ul><ul><ul><li>Formal, non-...
Barriers to pay for performance?
Building blocks Reward opportunity Compensation program Internal equity Market competitiveness Performance management prog...
<ul><li>What… </li></ul><ul><ul><li>Job responsibilities </li></ul></ul><ul><ul><li>Goals </li></ul></ul><ul><li>… how </l...
<ul><li>Focus on “management”… </li></ul><ul><ul><li>… not “evaluation” or “rating” </li></ul></ul><ul><li>Emphasize commu...
<ul><li>Communication and input </li></ul><ul><li>Job descriptions </li></ul><ul><ul><li>Employee ► manager ► HR </li></ul...
<ul><li>Identify markets </li></ul><ul><li>Assess market competitiveness </li></ul><ul><ul><li>Published surveys </li></ul...
<ul><li>Articulate compensation philosophy </li></ul><ul><ul><li>What does the organization pay for? </li></ul></ul><ul><u...
<ul><li>Develop salary policy </li></ul><ul><ul><li>E.g.: median of metro area organizations with operating budgets of $5 ...
<ul><li>Construct salary ranges </li></ul>Compensation program development Minimum (80%) Maximum (120%) Midpoint (100%) Pe...
<ul><li>Salary administration guidelines </li></ul><ul><ul><li>New/changed jobs </li></ul></ul><ul><ul><li>Promotions </li...
Merit increases Performance evaluation Position in salary range Merit increase
<ul><li>Periodically… </li></ul><ul><ul><li>Review internal equity and market competitiveness </li></ul></ul><ul><ul><li>A...
Continue building Strategic planning Non-cash rewards Professional development Career development Succession planning
Joe Brown Slope Resources [email_address] 908 241-8592 sloperesources.com twitter.com/joe_brown Thank you!
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Path to pay for performance

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Breakout Seminar at the Nonprofit Human Resources Management Symposium in San Diego, June 16, 2010.

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Path to pay for performance

  1. 1. The Path to Pay for Performance Joe Brown Slope Resources Nonprofit HR Symposium San Diego, CA June 16, 2010
  2. 2. <ul><li>Founded in 1998 </li></ul><ul><li>Human resources and organization management consulting services for nonprofits </li></ul><ul><li>Compensation and performance management </li></ul><ul><li>“ Big firm” background </li></ul><ul><li>Blog: Done by People </li></ul>
  3. 3. <ul><li>How many utilize… </li></ul><ul><ul><li>Formal pay for performance program </li></ul></ul><ul><ul><li>Formal, non-performance-based compensation program </li></ul></ul><ul><ul><li>Informal/ad hoc compensation practices </li></ul></ul>Where are you? ?
  4. 4. Barriers to pay for performance?
  5. 5. Building blocks Reward opportunity Compensation program Internal equity Market competitiveness Performance management program Individual/team contribution Actual rewards Performance Base salary Incentive compensation $
  6. 6. <ul><li>What… </li></ul><ul><ul><li>Job responsibilities </li></ul></ul><ul><ul><li>Goals </li></ul></ul><ul><li>… how </li></ul><ul><ul><li>Competencies </li></ul></ul><ul><ul><li>Expectations </li></ul></ul>Performance management program essentials
  7. 7. <ul><li>Focus on “management”… </li></ul><ul><ul><li>… not “evaluation” or “rating” </li></ul></ul><ul><li>Emphasize communication… </li></ul><ul><ul><li>… not the form </li></ul></ul><ul><li>Keep it simple… </li></ul><ul><ul><li>… and make it fit </li></ul></ul>Performance management program essentials
  8. 8. <ul><li>Communication and input </li></ul><ul><li>Job descriptions </li></ul><ul><ul><li>Employee ► manager ► HR </li></ul></ul><ul><li>Grouping/grades </li></ul><ul><li>Assess internal equity </li></ul>Compensation program development
  9. 9. <ul><li>Identify markets </li></ul><ul><li>Assess market competitiveness </li></ul><ul><ul><li>Published surveys </li></ul></ul><ul><ul><li>Custom surveys </li></ul></ul><ul><ul><li>Informal data collection </li></ul></ul><ul><ul><li>… caveat emptor </li></ul></ul>Compensation program development
  10. 10. <ul><li>Articulate compensation philosophy </li></ul><ul><ul><li>What does the organization pay for? </li></ul></ul><ul><ul><li>What values should be communicated and reinforced? </li></ul></ul><ul><ul><li>In what forms is compensation delivered? </li></ul></ul><ul><ul><li>What budgetary constraints are reflected? </li></ul></ul><ul><ul><li>How competitive should compensation be? </li></ul></ul><ul><ul><li>With what market(s)? </li></ul></ul>Compensation program development
  11. 11. <ul><li>Develop salary policy </li></ul><ul><ul><li>E.g.: median of metro area organizations with operating budgets of $5 million to $10 million </li></ul></ul><ul><ul><li>Costs </li></ul></ul><ul><ul><ul><li>Under minimum </li></ul></ul></ul><ul><ul><ul><li>Equity increases </li></ul></ul></ul><ul><ul><li>Short-term/long-term targets? </li></ul></ul>Compensation program development
  12. 12. <ul><li>Construct salary ranges </li></ul>Compensation program development Minimum (80%) Maximum (120%) Midpoint (100%) Performance over time Low High Average Hiring range
  13. 13. <ul><li>Salary administration guidelines </li></ul><ul><ul><li>New/changed jobs </li></ul></ul><ul><ul><li>Promotions </li></ul></ul><ul><ul><li>Hiring </li></ul></ul><ul><ul><li>Over maximum </li></ul></ul><ul><li>Implementation </li></ul><ul><li>Communication and feedback </li></ul>Compensation program development
  14. 14. Merit increases Performance evaluation Position in salary range Merit increase
  15. 15. <ul><li>Periodically… </li></ul><ul><ul><li>Review internal equity and market competitiveness </li></ul></ul><ul><ul><li>Adjust salary ranges </li></ul></ul><ul><ul><li>Ensure alignment with compensation philosophy </li></ul></ul>Compensation program management
  16. 16. Continue building Strategic planning Non-cash rewards Professional development Career development Succession planning
  17. 17. Joe Brown Slope Resources [email_address] 908 241-8592 sloperesources.com twitter.com/joe_brown Thank you!

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