Category Archives: Compensation Planning

Employers have myriad options when it comes to designing a compensation plan, and they must consider and how it will fit into their overall strategy for recruiting and retaining employees. This group of Compensation Daily Advisor articles will provide you with how to information on managing job evaluation, interpretation of survey data, setting of rate ranges, determining individual pay rates, and much more.

T & D Survey Results Are In: How Do You Compare?


"Yesterday’s Advisor began our report on BLR’s 2014 Training and Development Survey; today, survey results on training methods, training budgets, and training metrics, plus survey demographics on the 1052 participants."

Training Methods

Our survey shows the following methods used regularly for training employees.

In the coming years, 86% expect to use more online training and 68% plan to utilize more in-person sessions conducted by the HR staff. More video/DVD and mobile/tablet-based materials will be used by 51%, and more telephone/audio conferences will be utilized by 47.9%.

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How Do You Compare? Training and Development Survey Results Are In


"Highlight findings of the 2014 Training and Development Survey:

  • New hire orientation is the most commonly offered training topic, followed by sexual harassment and emergency procedures.
  • HR conducts the training at 78 percent of respondents’ businesses.
  • In the coming years, 86 percent expect to use more online training.
"

Thanks to all 1,052 participants in the 2014 Training and Development Survey! Here are the detailed results:

HR’s Role

HR wears multiple hats when it comes to implementing training programs.

What Is HR’s Role?

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Comparative Compensation Scorecards: How’m I Doin’?


"Yesterday’s Advisor featured consultant David Insler’s examples of compensation scorecard items; today, his comparative charts for unit-to-unit and comp-to-business data."

Unit Performance Differentiation

It’s hard to read the numbers in the chart below, but it’s easy to see what the chart is saying.

The collection of data on the bottom right is for employees rated “needs improvement.” The middle grouping is for “successful” performers, and the grouping at the right is for “exceptional” performers. The chart shows the percentages of employees in each performance category over a 4-year period.

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Winning Compensation Scorecards: What to Measure for Effective Results


"A compensation scorecard is a powerful aid for improving pay for performance, reducing entitlement, and, often, increasing employee acceptance of the pay program, says consultant David Insler."

Compensation Scorecards

A compensation scorecard is any dissemination of aggregate compensation information beyond the HR organization.

There are several types of scorecards, says Insler, who is the senior vice president at Sibson Consulting and leader of Sibson’s Western Region. His tips came during a recent BLR-sponsored webinar.

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7 Instances Where Exempt Employee Pay Can be Deducted for Absences

While the FLSA allows some very specific pay deductions for exempt employees, such as taxes and wage garnishments, it's typically quite strict about the fact that exempt employee pay shouldn't be reduced for exempt employee absences in most cases. It's important for employers to understand when certain payroll deductions may be perfectly legal, and when others may not be under federal law so they can keep their organization in compliance.

Let's take a look at some of the exceptions—some of the rare instances where exempt employee pay can be reduced for absences.

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Make Metrics Meaningful to Management


"The metrics you keep may be meaningful to you, but will they be meaningful to management? Is the analysis you provide to the C-suite in line with the strategic plan? Is it information that is useful in strategic decision making? If not, how can that be changed?"

Metrics let people make decisions based on objective information rather than simply guessing or going by instinct. Metrics also let people know what is important to the organization, since a metric that is tracked will be analyzed.

HR metrics have historically often focused on the past. For example, HR metrics often include things like turnover or time to hire. These data are useful but look only at raw info depicting what has happened, as opposed to assessing the “why” behind the data. Assessing the “why” is what will allow business leaders to make decisions accordingly. This is where HR professionals have an opportunity to change what metrics are presented and really make a strategic impact for the organization.

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Where to Get Pay Survey Data

Pay surveys are an important tool for developing and maintaining pay plans that fairly reward employees without breaking the bank. But where should the information come from? Should it be gathered by someone in-house? Or paid for from a consultant? What are the options?

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Must Employers Pay for Commute Time When Telecommuters Have to Come in?

It’s prudent to pay close attention to travel pay regulations because travel-related issues pose a significant risk for wage and hour claims. This is, unfortunately, an often-overlooked area.

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6 Best Practices Regarding Pregnant and New Mom Employees

Virtually every employer is going to deal with pregnant employees from time to time. Employers want to act in good faith and stay in compliance not only with the ADA and FMLA, but also with the Pregnancy Discrimination Act (PDA). PDA is an amendment to Title VII which specifically prohibits discrimination on the basis of pregnancy, childbirth, or related medical conditions. It doesn't prohibit discipline or firing of individuals who are pregnant or gone on a leave of absence to give birth—as long these employees are treated in the same manner as employees with similar abilities or limitations.

So, how can an employer stay in compliance?

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Regression Analysis: a Case Study


"In yesterday’s Advisor, consultant David Wudyka clarified the use of regression analysis and correlation analysis in compensation. Today, he offers a real world example of how to do the analysis."

A nonprofit home healthcare agency has asked “a consultant” whether its CEO is fairly paid relative to the marketplace for similar agencies. The Agency has supplied a database to the consultant, who also has his own survey database of CEO pay.

This case will demonstrate how regression data can be used to answer this question. David Wudyka, SPHR, MBA, BSIE, is the Managing Principal and founder of Westminster Associates in Wrentham, Massachusetts. His tips came during a recent webinar sponsored by BLR®.

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