Functional Area #4: Total Rewards
The following behaviors/results indicate what type of ranging method has been used and what is it pointing out? Provides wider ranges, reduces the number of job grades, supports de-layering, provides more autonomy to line manages, enhances employee mobility.
Broadbanding Advantages
This term defines other FINANCIAL returns, (beyond intangible), including salary and allowances.
Compensation
What is the process of Designing & implementing pay, benefits, and incentives; Performing accurate job analyses & evaluations; Designing compensation and benefits strategies that align to the organization's vision, mission and values?
Compensation System Design
With this system, the employee receives one piece rate up to the standard and THEN A higher rate once the standard has been exceeded. What type of productivity based pay system is this?
Differential piece-rate
Refers to obligated party (an individual or party entrusted with the care of money or property).
Fiduciary
The piece-rate system is an example of what type of incentive type?
Individual Incentive Pay
The CEO announces that the company beat it's projected sales numbers, so the employees are excited knowing that there will be some extra cash in their next paycheck!!! What type of incentive pay is the company using?
Organization Wide Pay
The HR mgr. has found several employees being paid ABOVE the range maximum. What is the term used for this?
Red Circle Rates.
What type of external Job Evaluation method collects information on prevailing market compensation and benefits practices?
Remuneration Surveys
A manager wants to implement a sales plan that will reward behaviors that support the company's strategy, the system needs to be able to handle readjustments, and the competitors use the same strategy. What would be the best sales plan to be on? Salary plus commission and/or bonus plan.
Salary plus commission and /or bonus plan.
Laverne is contemplating an offer from a company for a CEO position. She is reviewing the offer and it consists of not only her base pay, but also includes typical long term incentives that most executives receive. What are examples of long term incentives?
Stock option plans, Stock purchase plans, Restricted stock grants, phantom stock, restricted stock units, performance grants.
An employee is working at a manufacturing company. He is receiving a base wage rate of $10.00/hour, and gets $0.10 per item produced. What type of productivity based system is he on?
Straight piece rate (base plus).
Suzanne is working on her presentation for Benefits Open Enrollment. She will be designing what to reward continued employment and promote loyalty, protect financial and physical well-being of employees and their families, help to recruit and retain talent, provide cost-effective and affordable offerings that comply with laws and regulations. What is Suzanne working on?
The Company's Benefits Structure
Once an org finishes the Job Analysis, Job Documentation and Job Evaluation and other relevant information is collected, an organization uses this data to develop what important piece in a companies Total Rewards System?
The Pay Structure
The phrases: Total Rewards, Benefits, Compensation, Perqs, Incentive or Premiums relate to what type of terminology?
Total Rewards Key Terminology
Paid Time Off, Family oriented, Healthcare, Disability, Life Insurance, Workers Comp. are all what?
Types of Benefits
Suzanne has been laying awake at night with questions about her Open Enrollment presentation. Which benefits are required by law? Which benefits enable an employer to compete for employees? Which benefits are cost-effective to purchase and to administer? Which benefits do employees prefer? Which benefits provide creative choices? She is concerned about this because....
these are very important considerations when deciding which benefits to offer.
Joe is an employee in a manufacturing plant. He is paid $8/hour plus $.10 for each item up to 200, $.11 for each item from 201-500, and $.15 for each item over 500. If Joe worked a 40-hour week, and made 1,000 items, the base pay would be how much?
$448
These global policies are developed based on organizational impact and needs and are more likely to have strategies consistent with global policies, but too much consistency can lead to inappropriate local policies.
. Geocentric
Before David sits down with Suzanne, he takes time to review the orgs strategy, review the orgs total rewards philosophy, analyze workforce demographics, analyze benefits design and utilization data, conduct gap analysis, and present suggested actions. What is David conducting before the sits down with Suzanne to discuss benefits?
.Benefits Need Assessment
An HR manager realizes that her market data needs to be adjusted to account for movement in the market. What is she taking into consideration?
Aging uses movement in market rates to adjust outdated salary data.
Data that helps convert a metric into decision-supporting insight.
Analytics
Lutsa Lov, the HR manager, is about to present some information to the CEO to help make some business decisions about the organization. Before she presents the information to the CEO, what are some of the questions she needs to ask herself before she begins pulling her data?
Are these the right metrics and provide the information and insight needed to make informed decisions? Are you measuring activities & results? What are you doing with the data?
In this type of Step Rate Pay Structure, the pay scale is usually divided into a number of steps that are 3%-7% apart. At set time periods, each employee with the required seniority receives a one-step increase with the matching pay increase. . Step 1 has a certain $ amount, Step 2 has a higher dollar amount, Step 3, Step 4, etc.
Automatic Step- Rate Pay Structure
Once an organization has analyzed, evaluated, and priced its job, and designed its pay structure, the next step is to develop a system to help attract, motivate and retain employees. It will be made up of both hourly and salary pay. What is this system called?
Base Pay Systems
Reflects the total costs of benefits divided by the total payroll costs for the organization. Formula: total benefits cost/total payroll costs. STRATEGIC VALUE: Pay and benefits together make up organizational wage costs. This metric identifies the proportion of benefit costs.
Benefit Metric: Benefit Costs as % of total p/r costs
Measures the health-care expense per employee for a given fiscal year. Total expenses include employee- and company-paid premiums, stop-loss insurance and administrative fees. Formula: Total healthcare expenses/ number of employees enrolled in a healthcare plan. STRATEGIC VALUE: This measurement can show per-capita cost of employee benefits (the average person).
Benefit Metric: Health-care expense per employee
When you present benefit costs as a percentage of total payroll costs, and health-care expense per employee what are these numbers reflecting?
Benefit Metrics
What are tangible payments or services provided to employees (retirement and PTO) in addition to those required by law?
Benefits
A company wants to allow people to move within their job without outgrowing the pay scale. They also want to avoid having too many grades with small midpoint differences between them, and they want to combine salary grades to create larger ranges. What activity is this referred to?
Broadbanding
The following behaviors/results indicate what type of ranging method has been used and what is it pointing out? Reduces the value of the ranges, affords less control, creates overly broad ranges, difficult to maintain perception of equity, reduces the opportunity for promotion, can lead to divergence from the market.
Broadbanding Disadvantages
This is a combination of 2 base pay systems. Employees receive increases up to the job rate. Above the job rate, increases are granted only for above-standard performance.
Combination Step-Rate and Performance Structure
Base pay or retainer, fees paid for various events/services, benefits, perqs, nonqualified stock options/grant plans, nonqualified deferred compensation programs.
Compensation for Outside Directors
Dual Career Ladder allows senior technical personnel to earn as much as management personnel; Maturity curves correlate pay with time spent in the field; used for teachers, research scientists, engineers and technical personnel.
Compensation for professionals.
Marcia works at a company with primarily professional groups and their pay is set at the level at which an employee can operate in a defined competency. What type of person based system are they using?
Competency -based System
The main goal for this compensation is to provide retirement income to employees with some type of income payable periodically.
Deferred Benefits Plan, Defined Contribution Plan, Retirement plans.
This is a HOME country policy that is replicated in host countries. However, it provides inadequate attention to local differences What is this type of org behavior defined as?
Ethnocentric
The new VP of HR is updating the company's offerings of benefits and compensation in order to maintain a competitive advantage in the market. She pulls all the data on what the company has in place, reviews whether or not it is in current legal compliance, if it is compatible with org mission & strategy, a fit with the orgs culture and appropriate to the workforce, internally equitable and externally competitive. What is the purpose of going through all of this data?
Evaluating a Total Rewards Strategy
If an organization prefers to use professional groups or consulting firms to gather data, what type of survey are they interested in ?
External Surveys
When an HR managers is reaching out to Government sources, international organization, membership-based business organizations, professional /trade/industry associations for data/information, what type of survey is she using?
External Surveys
These are factors most used in what type of internal job evaluation method? Skills, responsibilities, effort and physical demand, working conditions, supervision of others
Factors most commonly used in point-factor method
Implies a legal obligation of one party (the employer) to act in the best interest of another (employee).
Fiduciary Duty
A newly hired employee earns $12.00/hour and in six months he will get a $0.50 raise. All other workers earn $12.50/hr. What type of base pay system is this?
Flat rate
Ethnocentric, Polycentric, Regiocentric, Geocentric all represent challenges facing companies that need to be taken into consideration. What are the challenges related to?
Global Issues & Challenges that orgs must take into consideration when creating company-wide strategies; compensation, staffing, training, etc.
When a company is expecting to grow it's operations overseas, and the leadership team considers the following questions: What are the best sources of salary data; how much info is available; how frequently does the market change; does the data for the jobs available match or compare to the ones being compared. What are they considering as far as surveys go? And which one would be the best choice?
Global Market Considerations: External Surveys
The HR mgr. has found several employees being paid BELOW the range maximum. What is the term used for this?
Green Circle Rates
A company offers gainsharing and team bonuses. This is an example of what type of incentive?
Group Incentive Pay
Cindy is the nurse in the infectious disease ward at the local hospital. She is losing interest in her job- she feels that she is not making a difference, that her performance is not being recognized and that she is not getting paid fairly. She is a fantastic performer and is being recruited by another hospital. The infectious disease ward is rolling out a new "getting to know you" program in 6 months. In relation to her compensation, what can her manager do to motivate her to stay? She knows money is a great motivator for Cindy.
Incentive Pay
When a manager discusses specific targeted objective for the employee to meet, they are rewarded once they have achieved those objectives. What is the terminology used (in terms of compensation) to entice the employee to meet those objectives?
Incentive Pay
When an activity is performed that determines the relative worth and pay structure of jobs based on an assessment of their content and relationship to other jobs IN THE ORG, what has been done?
Internal Job Evaluation
If org has available resources and expertise and they want more control over survey techniques and data analysis, what is the most likely survey they will perform?
Internal survey
A company has decided to open up a facility in other countries. Before HR starts developing services and delivering programs, they must perform due diligence which should include an understanding of what?
International standards & regulations; Extraterritorial application of national law; Application of national laws- owned subsidiaries operating within a nation's border.
What is this activity that is a systematic study of jobs to determine what activities (tasks) and responsibilities they include, personal qualifications necessary for performance of the jobs, the conditions under which work is performed and the reporting structure.? Also known as KSA (Knowledge, Skills, Abilities) and it is the foundation used while creating the Comp System Design.
Job Analysis
What is a component of Job Analysis when it come to KSAs that are required for a person to have a reasonable chance of successfully performing the job?
Job Specifications/Qualifications
This non-quantitative method of internal job evaluation involves writing a description for each class of jobs, which are then put into a grade that best matches their class based on the judgement of the evaluator.
Job classification
Mary has a hiring manager who needs to fill a position that requires a high level of knowledge in a specific field. What type of person based system will Mary use in this case?
Knowledge-Based System
A HR manager discovers the organization's benchmark position is at a supervisory level, but is has less responsibility than the survey's manager-level benchmark. She suggests adjusting the survey wage downward by a percentage. What activity is she performing?
Leveling adjusts salaries when surveyed jobs are similar but not identical to jobs in the organization.
What is the Job Evaluation method that looks at the relative worth and pay structure of different jobs based on their market value or the going rate in the market-place?
Market Based or Market Pricing
When you decide to do an internal job evaluation, the methods can be grouped into these categories. One evaluates the job in terms of their value to the organization without a numeric value being assigned, and the other bases the value on specific factors and providing a score.
Non-quantitative or Quantitative methods
You have just performed an internal evaluation during your Job Evaluation step. You are using a method that establishes an order of jobs in terms of their value to the organization, without a numeric value being assigned. This method evaluates the entire job and the sequence of jobs in hierarchical order based on the value to to the org., and the sequence will indicate that one job is more important than another but not specify how much. Examples: Job ranking, paired comparison, job classification.
Non-quantitative or whole-job method in Internal evaluation
This non-quantitative method of internal job evaluation compares each job with every other job being evaluated. The job with the largest number of "greater than" rankings is the highest-ranked job, and so on.
Paired comparison method with Job Ranking
An organization is in the final stages of performance appraisal. The HR manager produces a matrix to help not only reward employees for their performance, but to also bring equity to the organization to those above or below the midpoint. What is the name of the matrix she is using?
Pay Adjustment Matrix
An HR manager notices there are many employees that are having issues with Pay Compression. She decides to come up with some options to try to bring equity back to the org. and presents several ideas to the CEO. What are these options referred to as?
Pay Adjustments
COLA, General Pay Increases, Seniority Increases, Performance bonuses and Market Based Increases are all methods of what?
Pay Adjustments
When the company groups jobs that have the same relative internal or external worth and then pay the same rate or within the same pay range, what method are they using that helps develop the Pay Structure?
Pay Grades
While working on your Total Rewards Strategy, you are comparing your organization to other organizations that share its industry, occupation, or location. This is when you decide on whether you will Lag, Match, or Lead against the market. What part of the strategy is this?
Pay Strategy
Communication of the Total Rewards Systems to employees is very important. Advocates of open communication maintain that in order to support the goal of strategic business objectives, employees need to understand the pay system and how their pay is determined. What is this form of Total Rewards communication?
Pay Transparency
What is a component of Job Analysis when it come to the the desired behaviors/results that will constitute performance on the job?
Performance Criteria
Public companies can also benefits from linking stock-based compensation to organizational performance. If done properly, such an arrangement can qualify as performance-based compensation which avoids the deduction limitations that can be imposed under some legislation.
Performance Grants
Free/discounted services or products, mobile devices, professional orgs/certs, training programs, education fees, housing, company car or cash car allowance, club memberships, meal allowances..
Perqs
Mary works at a company in which their pay rate system is based on a persons characteristics. Knowledge, skills and competencies are more important than how the job is performed. What type of system is her company using?
Person based Pay System
These stock arrangements are generally used when a company does not view ownership of real equity as desirable (for economic or tax reasons) but seeks to create incentives that encourage participants to see their interests as aligned with those of the company's owners.
Phantom Stock
These policies are unique to each country and incentives tied to LOCAL objectives. More likely to have integrated and consistent policies within each subsidiary.
Polycentric
An employee works in a manufacturing assembly line. She gets paid on her output and there are 2 types of pay rate systems that the company uses. What type of base pay system is typically used in her industry?
Productivity- Based System
You have just performed an internal evaluation during your Job Evaluation step. You are using specific factors on a scale and providing a score based on compensable factors to show how much more valuable one job is compared to another. What is the method you are using? Example: a point-factor system
Quantitative methods
If red circle rates become common in the organization, the orgs pay ranges may lag the market and may need to be reexamined. What could be possible reasons for this?
Reasons: Long term employees reach the max rate in their range or when promo opportunities are rare; employees are bumped down to a lower-level job, rather than getting laid off, but their salary is not reduced (sometimes red circle rate is frozen until the pay structure is increased enough so that the rate falls within the range); when a mgr is paid at the top of the job range but there are no openings in the next job range ( in this case managers bonuses are sometimes used to increase the manager's take-home pa
These policies are developed and coordinated within regions and provide a greater potential for consistency within regions, but may suffer blind spots with respect to country differences.
Regiocentric
Unlike a stock option, this type of stock grant does not require an employee or executive to purchase the stock. It is essentially a transfer or gift of stock with forfeiture provisions that result in a possible loss of the shares if certain requirements are not met.
Restricted Stock Grants
These stock units are very much like the phantom stock arrangement in that the grantee does not receive actual equity ownership. Instead the grantee is given a promise of a certain amount of stock after restrictions have been fulfilled (vesting period, company going public or being acquired). These stock units have value to the grantee even if the stock's price falls. This arrangement is treated as a type of nonqualified deferred compensation arrangement where payment is in stock rather than in cash.
Restricted Stock Units
Promises payment of a specific benefit amount at retirement; vesting schedule is set up; benefits are based on service and perhaps salary that is decided by a formula; provides a pre-specified level of benefits; employer bears investment risk.
Retirement Plans: Defined Benefit Plan
Amount of money that is to be regularly contributed to the fund is specified; no promises are made about the future value of the benefits; employees will be entitled to 100% of their investment and the vested portion of the employer's contributions upon retirement; requires individual accounts for each employee; amount of the benefit at retirement will depend on the investment return; employee bears the investment risk.
Retirement Plans: Defined Contribution Plan
When the company sets upper/lower bounds of possible compensation for individuals whose job falls in a pay grade and they use market data from surveys used to determine a midpoint, what method are they using that helps develop the Pay Structure?
Set Pay Ranges
The amount of compensation paid to a terminated employee; circumstances also include position, employment agreements, and employer practices and policies and country law.
Severance Pay
A recruiter is hiring for engineers in Texas. The company is based out of San Jose. What is an important factor to keep in mind when reviewing the salary data?
Since wage rates vary by location, the organization should factor any national salary survey data for geography.
This type of base pay system gives the employees the same rate of pay, regardless of performance or seniority. It generally corresponds to target market survey data for job. Training is typically under only one of the systems. What are the 2 base pay systems? Which one is used for training?
Single or flat rate. Flat rate is for training.
Jane works at a company with a large production environment. She hires employees based on the number of skills they are qualified to perform. The employees can increase their pay by acquiring new skills. What type of person based system are they using?
Skill-based System
This refers to social insurance, where people receive benefits or services in recognition of contributions to an insurance program; services provided by government or designated agencies responsible for social security provision; basic security irrespective of participation in specific insurance program where eligibility may otherwise be an issue.
Social Security
David is working the Suzanne on benefits. She wants to standardize them as much as possible, but David is pushing back arguing that it is very difficult to standardize benefits. Why is it difficult?
Standardization is difficult because of variations in benefits: Government provided, government mandated, voluntary or discretionary benefits, market practice benefits, tax treatments of benefits.
Global Issues and Challenges
Standardization vs. localization; Culture; Competitive labor market; Union (collective bargaining); Economic Factors; Taxation.
This pay system is one type of Step-Rate system, but the size or timing of increases vary if performance is substantially above or below standard. For example an employee could skip Step 2 and go straight to Step 4.
Step-Rate with Variability-Based Performance Considerations
This type of LTI gives the right to purchase shares of a company's stock at a predetermined price, which is referred to as the exercise price. Participants usually gain vesting rights to exercise a predetermined percentage of the total stock option allocation each year.
Stock Options
This LTI is a broad based plan available to most or all of a public company's employees. They are required to be broad-based if they are intended to qualify for favorable tax treatment.
Stock Purchase Plans
A store in the mall that sells fur coats will only open during the winter months in Aspen. The orgs objective is to increase sales volume and get as much product out the door as soon as possible. They want to hold down the cost of sales as well. What type of Sales plan would be best for it's employees?
Straight Commission Plan
Company 123 wants to motivate it's sales professionals to achieve specific objectives that directly translates the bottom line. At one of their facilities, Jane spends a lot of time on service to the customers and does not have a lot of time to focus on her sales. It's difficult to measure the sales that are made and individual sales and support efforts are hard to separate and the sales cycle is very long. What type of Sales Compensation Plan would be best for her?
Straight Salary Compensation Plan
An HR manager has been asked to provide market salary data for a report her manager needs. She had downloaded the market data previously, but cannot remember exactly when. She decides that before she populates her report with the data she takes time to: Verify the data and decide if it needs to be aged, leveled, and/or factored for geography (location). What type of activity is she performing?
Survey Data Analysis
When your best friend is taking an "extended vacation" from work, you know there are different reasons why. It may have been: Voluntary (when an employee resigns/retires); Nonvoluntary (when employers discharge employees for cause or workforce adjustments); Other circumstances under which an org can terminate employment are prescribed by law and differ by country. What are these three choices referred to as?
Termination Types
You are creating a Total Rewards Strategy. What are the OBJECTIVES of this strategy?
The objectives of this strategy should be: Compatible with orgs mission & strategy, compatible with org culture, appropriate for the workforce, and have internal and external equity.
Why are Job context, Job content, Job specification/qualifications, and Performance criteria so important to this particular method done during the Compensation System Design?
These are Job Analysis Considerations
This type of base pay system is based on longevity in the job. Pay increases occur on a pre-determined schedule. There are several types of step-rate pay systems.
Time-based step-rate
David wants to help an organization manage the costs associated with human capital, including evaluating the use of fixed versus variable compensation. This will include all costs associated with employment, including salaries, overtime, benefits and bonuses. Formula: Salaries+OT+Ben+Bon/Total Costs. What is the name of this metric?
Total Company Compensation Expense
When a recruiter is discussing direct & indirect remuneration that they are using to attract, recognize, and retain workers, what do all of these components represent?
Total Rewards
When an organization has this strategy in place and wants to educate emps about the orgs total rewards practices and the objective is to achieve emp buy-in and make them aware of overall value, support the orgs strategic objectives, and support the orgs goals for performance mgt, what are you creating?
Total Rewards Strategy Communication. A total rewards program is a powerful motivator when understood and accepted by employees.
Your roommate just lost his job. You are worried that he won't be able to pay rent, but he says not to worry because it's all good! He can get paid and not even work- but he does have to be looking for a job. He receives this type of "benefit" because either he, his employer, or both of them have been paying a percentage of an his salary to the state. This premium applies toward paying a percentage of an employee's salary in the case of the employee losing his or her job through no fault of the employee. What is this type of benefit called?
Unemployment Insurance
The payroll manager is training Christina on the fascinating aspects of payroll. One of the training sessions discusses the company's policies on minimum wage increase/decrease, OT pay and holiday pay, Equal Pay, Exemption, Cap on hrs worked, special issues under local law, and taxation. Christina is falling asleep but knows she needs to stay awake because the company needs to make sure it is following what?
Wage and Hour Law Compliance
The cost of employee benefits is an example of what type of data?
a Measure
The time and cost to fill an open position, which is an analysis of performance, is what type of data?
a Metrics
A company wants to tie their labor costs and their performance pay together. They don't want to add any money to the employee's base pay, but if an employee is working in a very dangerous environment, they will pay hazard pay if necessary, which is very different than what they would typically pay a typical employee. What type of pay is this?
Differential Pay
This information is gathered from informal networking and knowledge sharing to formal engagements with private firms. The purpose is to help identify gaps in policies and procedures compared to competitors and best practices. What is the name for this type of External Survey?
Benchmarking
XYZ company has a facility located in Alaska and it is typically 30 degrees for 8 months out of the year. Attracting workers to work in the facility is becoming increasingly difficult. What is the name of the Differential Pay type that can tailor it's compensation program to take into consideration the remote location of the facility, the change in wages for the COLA difference, and to reflect factors that affect the economics of the employees?
Differential Pay: Geographic
The payroll manager is starting her payroll process. She has several employees who have jobs where they are required to be on-call, have worked second or third shifts, have responded to emergencies, have worked overtime, came to work but there was no work available, and some that traveled across town to deliver supplies. What type of Differential Pay is this?
Differential Pay: Time-Based
In order to do this, it is important to start with an overarching strategy and standard implementation guidelines ( but adaptable to org specifications and local conditions and norms) .
Effective Communication of Total Rewards
This terminology describes all the activities associated with an employee's tenure in an organization. Promotions, rewards that accommodate an employee's desire to balance work/life needs.
Employee Life Cycle (ELC)
What should the HR manager do to remedy the employees with Green Circle Rate?
Employees should be given pay raises to get them into the range as soon as they meet the minimum requirements for the position. Reasons: Promotes an employee or "tried out" an employee who does not possess all the requisite KSA for a job; *reviews and updates its pay ranges, increasing minimum as a result.
What is dividing the pay rate of an employee by the midpoint of the pay range. (Pay rate/Midpoint) represent?
The Compa-Ratio Formula
While developing a Total Rewards Strategy, what are the steps you would take and in what order?
The steps for this strategy would be: an Evaluation, an Assessment, Design it, and then Implement it.
When pay ranges are based on the target market rate, and the CFO wants to know how the companies salaries compare to the market and whether or not the company matches, leads, or lags, the HR manager should perform what type of analysis with market and internal salary data?
Compa-Ratio
If the final result from the compa-ratio calculation is above 1.00, what does that mean in relation to the employees pay?
Compa-ratios above 1.00 mean that wages exceed the midpoint. The org may have adopted a lead strategy with regard to pay, managers are not following salary increase policies, employees are long-tenured and/or high performers.
If the final result from the compa-ratio calculation is below 1.00, what does that mean in relation to the employees pay?
Compa-ratios below 1:00 means that employee is paid less than the midpoint. they may be new to the job, poor performer, to the org may adopt a lag strategy with regard to pay.
This quantitative method of internal job evaluation lists factors that reflect how much the job adds value to the organization. It reflects the actual work being done, has to be supported by documentation such as job descriptions, reinforce the orgs strategic plan and culture, be valued by all affected parties, and be reviewed annually.
Compensable factors
While reviewing the strategy of your Total Rewards, and you take the following steps: Job Analysis, Job Documentation, Job Evaluation, and Pay Structure, what are you designing?
Compensation System Design Steps
Align measurements to the org plan; measure what can help emp performance or business leaders make better decisions; avoid gathering data for its own sake.
Guidelines for Measure, Metrics & Analytics
In order to complete the most important piece of the Compensation Design Structure, what are these method used for? Observation, interviews, open-ended questionnaire, highly structured questionnaire, work diary or log.
Job Analysis Methods
Job Description, Job Specifications and Job Competencies are the results after what important activity is completed?
Job Analysis Outcomes
This is part of the consideration of Job Analysis: the duties & responsibilities of people who hold the job.
Job Content
This is part of the consideration of Job Analysis: it is the purpose of the job, it's environment, place of work, org structure.
Job Context
This non-quantitative method of internal job evaluation establishes hierarchy of jobs from lowest to highest based on each job's overall value to the org. Ranking evaluates whole job, rather than parts of it and compares one to another. If there are many jobs to evaluate, a paired-comparison method can be used.
Job Ranking
After an analysis of the salaries, Greg puts a process in place suggesting the following ideas if an offer for a candidate is going to be close to what more experienced employees make. Match the market in pay rates for all employees, not just new hires; provide other benefits to employees affected by pay compression; continuously evaluate survey data and update pay ranges accordingly; provide incentive plans for managers; increase the amount of time off awarded; provide longevity bonuses; monitor salaries for inflation; install a more aggressive merit pay program.
Measures to counteract Pay Compression
These terms represent the creation of data to measure the effectiveness of an orgs success when implementing various strategies- staffing, benefits, training. It helps business leaders to make informed decisions.
Measures, Metrics, & Analytics
Greg Brady is looking at the salaries of all the employees in the organization. He notices that there is a small difference in pay between employees regardless of their experience, skills, level or seniority. He asks one of the managers why there is such a small difference. He uses an example of Johnny who is an inexperienced engineer, but hired at close to what more-experienced engineers earn. Johnny's manager tells him that because of escalation in competitive hiring rates, they had to offer Johnny almost more of the experienced ones that were already employed. Greg realizes there is not enough difference between pay levels. What is happening in this situation regarding pay?
Pay Compression/Salary Compression
When this type of compensation structure (?) results in supporting the achievement of strategic bus. objectives; reduces conflicts among empl & between empls and mgt. regarding pay, what does this demonstrate?
Pay Transparency Advantages
When this type of compensation structure leads to jealousy- employees question systems fairness; poses a risk that information may be used for unintended purposes; requires protection of emp privacy and prop information; raises individual & cultural concerns about "fairness" in the global environment, what are these behaviors demonstrating?
Pay Transparency Disadvantages
An HR managers is reviewing the salaries of all of the employees in her company. She notices that there are several individuals that are paid outside of the established pay ranges, some over and some under. What is this type of data showing her?
Pay Variations
In this pay system the individual employee's performance on the job is the basis for the amount and timing of pay increases. It is also referred to as Merit Pay or Pay for Performance.
Performance Based Pay/ Merit Pay System
What is another type of compensation provided in the form of goods or services? These are used to help retain and attract employees and can be very persuasive.
Perqs