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.
"YYesterday’s Advisor highlighted the Q&A at a recent OFCCP-sponsored chat on the gender pay gap. Today, more answers from the agencies plus an introduction to a timely webinar on Employee Rewards."
Pat Shiu, Director of the Office of Federal Contract Compliance Programs, was joined for the chat by Latifa Lyles, Acting Director of the Women’s Bureau (WB), and Jennifer Hunt, chief economist at the Department of Labor (DOL).
[Go here for yesterday’s questions and answers]
SHARE THIS ARTICLE
"“… we can and must do more—from updating our regulations and collecting better data to working with employers to improve compensation systems and teaching workers how negotiate for fair pay,” said Pat Shiu, Director of the Office of Federal Contract Compliance Programs, opening the “Equal Pay Chat.”"
Latifa Lyles, Acting Director of the Women’s Bureau (WB), noted that today, full-time female workers earn on average only 81 percent of what their male counterparts earn. For African-American females and Latinas, the wage ratio is substantially lower: 68 cents and 59 cents, respectively. But the real cost of the pay gap is more than 18 or 23 cents on the dollar. The real cost is much higher. The consequences of a pay gap affect women, their families, and our nation’s economy.
SHARE THIS ARTICLE
"Yesterday’s Advisor featured consultant Chuck Csizmar’s tips for formulating a meaningful compensation strategy. Today, more of his tips plus an introduction to the all-compensation-in-one-place website, Compensation.BLR.com®."
[Go here for #1 to #3]
Describe the comparator group(s) for your rewards package
Determine industry/geographic competitors
For signature programs, what are the benchmarks
SHARE THIS ARTICLE
"If you are like most companies, says consultant Chuck Csizmar, you have a compensation strategy that’s filled with broad, aspirational phrases like “market leader,” “shareholder value,” “supplier of choice,” and maybe “Employer of Choice,” or “competitive.”"
You need something more than platitudes to get and retain the people you want, says Csizmar, who is founder and principal of CMC Compensation Group.
When we talk strategy, we’re talking about “a plan, method, or series of maneuvers for obtaining a specific goal or result.” It’s a guideline or road map that lays down a series of principles to be acted upon, says Csizmar.
SHARE THIS ARTICLE
"Yesterday’s Advisor warned of the coming “Turnover Armageddon.” Today, what you can do now—beyond offering more money—to retain your best workers, plus an introduction to the audit guide that helps you find problems before the feds do."
Most experts believe that engagement is not all about money. There are actions you can take that could be effective at retention of high potential and/or key player employees. For example:
SHARE THIS ARTICLE
"Many experts are predicting a rapid rise in turnover if the economy continues to improve. The most pessimistic call it “Turnover Armageddon.” Is it coming to your organization? And, if so, what can you do?"
If your organization is like most, workers have been patient about compensation for several years of low or no raises. They understood that their organizations were squeezed by economic pressures, and they were also held back by general insecurity about changing jobs in tricky times.
But patience is wearing thin, and indications are that as employees’ confidence returns, many will be eager to move.
SHARE THIS ARTICLE
"Yesterday’s Advisor featured consultant Joseph DiMisa’s comp design challenges for 2013. Today, how to make selling comp a little easier by using concrete return-on-investment (ROI) measures, plus an introduction to the comprehensive comp website, Compensation.BLR.com®. "
DiMisa, who is senior vice president, Sales Force Effectiveness at Sibson Consulting, outlined eight design challenges during a recent webinar sponsored by BLR® and HR Hero®.
SHARE THIS ARTICLE
"Rob from the poor and give to the rich, says consultant Joseph DiMisa, to make your incentive program really reward top performers."
You have to lower incentive payments to poor performers to liberate funds to give bigger rewards to your top performers, says DiMisa. Rewarding performance is the first of his incentive design challenges for 2013.
DiMisa, who is senior vice president, Sales Force Effectiveness at Sibson Consulting, outlined eight design challenges during a recent webinar sponsored by BLR® and HR Hero®.
SHARE THIS ARTICLE
"Everyone wants to do pay for performance, but it won’t work without clear, meaningful, measurable goals. Use the SMART system, says consultant Diana D. Neelman, CCP."
Neelman offers the following suggestions for making goals and objectives truly helpful:
SHARE THIS ARTICLE
"It’s a constantly changing landscape for compensation, says consultant Mary A. Rizzuti, CCP, PHR, and that means you have to do a practical review of your compensation philosophy."
Yes, it’s worth the time and focus on your compensation philosophy, because it is the basis for everything you do in compensation. You need to get it to paper so execs, managers, and employees understand, says Rizzuti.
Rizzuti, who is a principal and senior consultant with Compensation Resources, Inc, in Upper Saddle River, New Jersey, offered her tips at a recent webinar sponsored by BLR and HR Hero.
SHARE THIS ARTICLE
Advertisement
