Category Archives: Compensation Administration

Establishing an effective compensation administration program requires job analysis, job evaluation, and job pricing. A successful program will help attract top talent, retain core employees, and encourage longevity while efficiently using financial resources. Our articles and tips on Compensation Administration will provide you with How to information on compensation challenges including software, payroll, tax, and communication.

The 14 Qualities of Great Leaders—How Many Do You Have?


"In today’s Advisor, business and leadership blogger Dan Oswald offers his thoughts on qualities of great leaders. (Oswald, CEO of BLR® offers these thoughts weekly in The Oswald Letter.)"

Marvin Bower joined McKinsey & Company in 1933 and served as the management consulting firm’s managing partner from 1950 to 1967. In 1997, he published a book titled The Will to Lead: Running a Business with a Network of Leaders, in which he shares his perspectives on leadership.

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Training Programs—What’s Happening in the Real World?


"Everyone knows how important training is, but finding the time and budget is another story. So what’s happening in the real world? What are your competitors up to? What are best practices? Help us find out!"

Please participate in our brief survey and see how what you are doing for training stacks up against what other successful companies are doing.

We’ll get answers to these questions and more:

  • How often do your employees receive training?
  • What kind of training is conducted?
  • What specific topics is training offered on?
  • What are the best sources for training materials?
  • What is HR’s role in training?

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5 Levels of Leadership—Where Do You Fall?


"My youngest son came home from school the other day with a packet of information from one of his coaches. Included in the packet was a sheet of paper titled “The Leadership Continuum.” It outlines five levels of leadership and what is necessary to demonstrate each. I hadn’t seen this before, but after reading it, I thought it was certainly applicable not just to team sports but also to the team environment in the workplace."

Here are the five levels of leadership as defined in this continuum:

1. Leading Yourself

Included in the definition of self-leadership are character development and core values. In my book, that includes the types of choices you’re making in your personal and work life. Do you act with integrity? Do you put in an honest day’s work? Do you treat others with respect? I consider this passing the “mom test.” Do you behave in a way that would make your mother proud?

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Best Defense Against Leave Fraud? Continuous Performance


"Yesterday’s Advisor featured Attorney Patricia Eyres on dealing with employees’ chronic health conditions. Today, her tips on managing those employees’ performance, plus an introduction to the new leave law resource, FMLA Complete Compliance."

Continuous Performance Management Is Your Best Potential Defense

Always start dealing with the productivity or performance issue, says Eyres. Let the employee bring up the disability. Eyres, who is managing partner of Eyres Law Group, LLP, offered her tips at a recent BLR-sponsored webinar. Consider the following, she says:

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Accommodating Chronic Conditions—Frustrating and Annoying, But You Have No Choice


"There’s nothing quite as annoying and frustrating as dealing with lifelong illnesses or chronic conditions under the FMLA and ADA. But you have no choice, says Attorney Patricia Eyres."

What Is a Chronic Condition?

What is a “Chronic Condition” for purposes of leaves, accommodations, and performance management? Eyres says that it is a disease or disorder:

  • Of slow progression and long duration;
  • That causes continuous or episodic periods of incapacity;
  • Lasting at least one year but usually a lifetime; and
  • That often involves episodic complications from treatments or medications. (Under the ADA and FMLA, these may give rise to a separate limitation of a major life activity.)

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Contingent Workforce—Who’s a ‘Temp’?


"Yesterday’s Advisor covered legal issues around temps and contingent workers. Today, types of temps plus an introduction to the guide that helps you audit your wage and hour compliance so you can find problems before the feds do."

The temporary or contingent workforce is the fastest growing segment of the national workforce, with almost 75 percent of employers in all industries using them, according to a survey by CyberShift.

It’s important to sort out the status of your relationship with each type of contingent worker before issues arise. For insights, we turned to Compensation.BLR.com.

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Temp and Other Contingent Workers—Laws Still Apply


"Many managers mistakenly think that they can relax their compliance when dealing with temp workers, but that is not the case; most laws that apply to "regular" workers also apply to temporary, contingent, or leased workers."

Discrimination Laws

The Equal Employment Opportunity Commission (EEOC) Enforcement Guidance 915.002 concerning contingent workers clarifies that staffing firms and employers using contingent workers may not discriminate on the basis of race, color, religion, sex, national origin, age, or disability, nor can they ask the medical questions forbidden by the Americans with Disabilities Act (ADA).

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Toobin’s Take on Hobby Lobby


"Hobby Lobby is the case to watch on this session’s Supreme Court docket, says noted author Jeffrey Toobin. Individuals have religious freedom, of course, Toobin says, but do corporations?"

Special from SHRM’s Employment Law and Legislative Conference

Hobby Lobby is a large (3 billion plus) privately held organization with over 600 stores across the country. The company’s philosophy is imbued with the religious views of its founder David Green. For example, the number one operating principle listed on their website is “Honoring the Lord in all we do by operating the company in a manner consistent with biblical principles.”

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Key Factors in Determining Salary Increases


"Yesterday’s Advisor told how to deal with red circles; today, determining salary increases plus an introduction to the all-things-compensation-in-one-place website, Compensation.BLR.com®."

Once you’ve got a salary increase matrix (see below), determining increases should be simple—but it’s not.

Several approaches are commonly used for determining salary increases.

  • Performance/merit systems are the most common.
  • Across-the-board or general increases are often tied to increases in the cost-of-living index.
  • For unionized employees, the collective bargaining agreement will include a negotiated provision for wage increases that usually includes a fixed general annual increase that may be combined in some instances with merit provisions and cost-of-living escalators that add to the across-the-board increase when the cost-of-living index goes up more than a predetermined amount.
  • Many employers utilize a grid system with low, middle, and high ranges to determine what an employee’s wage should be based on job performance and current salary.

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Compensation 101—The Basics


"What is a compensation administration program? A formal compensation administration program is the basic management tool for ensuring that:"

  • Employees are satisfied.
  • Both internal and external equity are maintained.
  • Control is maintained over compensation costs.

For a review of basic compensation program principles, we turned to Compensation.BLR.com®.

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