| It's Spring - Time for a Compensation
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| | strategic need in the organization that
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| Program Tune Up
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| | will alter our market focus, either by
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| Now that winter has passed, the annual
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| | type of job or market definition? Is the
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| ritual of spring cleaning is in full
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| | organization in a position to remain
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| swing. Spring cleaning is more than
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| | competitive?
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| cleaning the windows and clearing the
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| | - What internal job equity challenges or
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| cobwebs that hid in the corners during
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| | pressures will be placed on the
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| the winter. "Spring is a time to take a
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| | compensation program in the coming year?o
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| serious look at your compensation program
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| | If a job evaluation system is used, are
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| and begin planning for the next budget
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| | the factors and factor weights applicable
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| cycle. Depending on your organization's
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| | based on current strategic direction? If
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| fiscal year, it may also be time to
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| | not, what modifications are required?
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| determine appropriate market adjustments
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| | - What employee equity challenges or
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| and pay increases for the coming year,"
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| | pressures will be placed on the
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| said Michael Maciekowich, National
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| | compensation program in the coming year?o
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| Director, Astron Solutions.
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| | Have recent market adjustments and system
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| Compensation program spring cleaning is
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| | modifications forgotten the employees?
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| more than looking at the market and
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| | Are we able to attract employees without
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| determining adjustments. It is a time to
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| | causing internal pay compression?
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| step back and determine if the system
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| | - What financial challenges will impede
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| remained in alignment with organizational
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| | the ability of the organization to
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| and employee needs. Most organizations
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| | successfully fund and implement needed
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| have long-term strategic plans with
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| | compensation program elements?o Can the
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| short-term objectives to determine
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| | organization sustain past financial
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| progress. A compensation program designed
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| | commitments to the compensation program?
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| at the beginning of a long-term strategic
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| | If not, how will spending priorities be
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| cycle also needs flexibility to address
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| | set?
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| yearly short-term organizational
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| | - What changes need to be made as to how
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| objectives. As new objectives come to the
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| | employees are recognized and rewarded for
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| forefront, or current ones are modified,
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| | their contributions to the organization?o
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| the compensation plan must also change.
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| | Do the current recognition and reward
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| This is a different way of thinking about
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| | mechanisms work to motivate employees to
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| compensation programs. There are a number
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| | contribute to the organization's
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| of tools and processes to help with this
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| | strategic direction?
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| matter. One is a survey of the
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| | With these questions answered, human
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| compensation program's effectiveness for
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| | resource next must develop a strategic
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| users, including executive management,
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| | response. Take the five questions above
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| department management, and employees. The
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| | and overlay the four question survey
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| focus of this annual survey is the
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| | responses. This helps to develop a
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| following:
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| | strategic response to each of the five
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| - What aspects of the current
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| | key compensation issues. Here are basic
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| compensation program were most effective
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| | examples of the thought process for
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| in the past year?o What aspects seem to
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| | auditing current compensation processes:
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| have had a positive impact on employees
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| | - External Equity Issues: Most effective.
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| in terms of retention and morale?
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| | Continue current process.
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| - What aspects of the current
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| | - Internal Equity Issues: Least
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| compensation program were least effective
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| | effective. Additional focus on internal
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| in the past year?o What issues did human
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| | job placement required.
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| resources seem to spend the most time
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| | - Employee Equity Issues: Least
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| discussing with employees and managers?
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| | effective. Serious compression issues
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| - What should be the focus of the
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| | developed that need further action.
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| compensation program in the coming year?o
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| | - Ability to pay issues: Most effective.
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| What are managers' and employees'
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| | Required funding of the program is
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| expectations in terms of compensation
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| | understood and available.
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| determination?
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| | - Reward and Recognition Issues: Most
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| - What will prevent this from happening?o
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| | effective. High level of satisfaction
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| To what extent do managers and employees
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| | with current performance assessment and
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| understand current financial issues
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| | rewards systems.
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| facing the organization?
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| | With this information in hand, the final
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| With this understanding, human resources
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| | step is to create a focused strategic
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| must answer the following five questions:
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| | response to present to senior management.
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| - What external market challenges or
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| | The result is a fresh look at your
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| pressures will be placed on the
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| | compensation program and a focused
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| compensation system in the coming year?o
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| | direction for the year ahead.
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| Has the market shifted? Is there a new
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