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TheCompensationHandbook LanceA BergerDorothyR Berger Alignmentmodel 1 Theroleofcompensationincorporatetransformation Customizingacompensationsystem 1 Theroleofcompensationincorporatetransformation Businesssituationandpaytechniques Xsindicatetheeffectivenessofthetechnique Newemployeeatlowerratethancurrentemployees 1 Theroleofcompensationincorporatetransformation Paytechniques descriptivematrix 1 Theroleofcompensationincorporatetransformation Paytechniques descriptivematrix 1 Theroleofcompensationincorporatetransformation Paytechniques descriptivematrix Continued 1 Theroleofcompensationincorporatetransformation Paytechniques descriptivematrix Continued 1 Theroleofcompensationincorporatetransformation Paytechniques descriptivematrix Continued 1 Theroleofcompensationincorporatetransformation Paytechniques descriptivematrix Continued 1 Theroleofcompensationincorporatetransformation Cultureandpaytechniques 1 Theroleofcompensationincorporatetransformation Cultureandpaytechniques 1 Theroleofcompensationincorporatetransformation Cultureandpaytechniques Continued 1 Theroleofcompensationincorporatetransformation Cultureandpaytechniques Continued 1 Theroleofcompensationincorporatetransformation Underthemostsuccessfulscenario abusinessshouldplanacompensationtransformationbeforeitisdestabilizedbymarket competitive orinternalchangetriggers Acompany spotentialforsurvivalisincreasedbyfastresponseandquickadaptation Thefollowingsimplifiedstepscanbehelpfulduringthetransformationprocess 1 Theroleofcompensationincorporatetransformation Determinethedirectionofthetransformation thatis theaccelerationordecelerationofgrowth Determinetheamountaffordablebythebusinessunitovera2 to3 yearperiod Identifythecharacteristicsofeachdiscretepaymarketinwhichthecompanycompetesfortalent Withineachpaymarketandwithinthecompanyasawhole assessthecompetitiveleveloftotalhumanresourcescost includebasesalary variablepay benefits training education work life andotherrelevantprograms oftheworkforce Witheachpaymarket determinethedifficultyofrecruitment timetorecruit turnoverrate skilllevelsrequired andtrainingnecessary Assessaffordabilitybasedonthefeasibilityofbasingmorepayonincrementalprofits AssesschangereadinessIdentifypaytechniquesrelevanttoeachpaymarket Utilizesuccessionandworkforceassessmenttocustomizecompensationprogramsformust keepemployees Developcustomizedpaystrategies administrativeprogress performancemanagement andcareermanagementprogressforeachtalentpaymarketbycombiningthosewithsimilarcharacteristicsandsegmentingothersthatdonotfittogether Communicatenewprogram 1 Theroleofcompensationincorporatetransformation Theevolutionofrewardmanagementinanorganization 4 Compensation anoverview JobDocumentation Thefirststeptowardprovidingasoundbasisfromwhichtodocumentanorganization sjobsistoanalyzetheorganization sculture Thesecondstepistodeterminewhatcategoriesorparameterswillbeanalyzed Thethirdstepinthejobanalysisprocessistocollectjobcontent Thefinalstepinthejobanalysisprocessistodocumentjobcontent 5 Jobanalysisandjobdocumentation Whatarethosedeterminantsofpay Organization LevelDeterminants Industry Size Performance Abilitytopay Location Job LevelDeterminants Organizationlocation organizationlevel Jobsize Employee LevelDeterminants Roles Skill Competencies 8 Retrieving manipulating andanalyzingcompensationdata Developingcompetitivecompensationprograms Whoarethecompetitiveforresources Whatarethedistinguishingcharacteristicsofmybusiness Howshouldmybusinessfitwithprevailingmarketpaypractices Whatfunctionsarecriticaltomybusinesscompetitiveadvantage Howdoeslocationaffectmyabilitytoattractskilledpersonnel Gatheringandinterpretingcompetitivemarketdata Compensationdatabase tokeepcompensationprogramcurrentwithchangesinthemarket DerivingmarketdataforlargepopulationsandHYBIRDjobs 9 Developingcompetitivecompensationprograms Typicalcompensationbybusinessmaturitystage 9 Developingcompetitivecompensationprograms Business compensationstrategyflow 10 Thedevelopmentofsalarystructures Basepayprogramarchitecture 10 Thedevelopmentofsalarystructures OrganizationandSalaryStructure 10 Thedevelopmentofsalarystructures Five bandmodel 10 Thedevelopmentofsalarystructures Atypologyofcompetency relatedpay 12 Relatingcompetenciestopay ThecompetencyevaluationframeworkfromtheWoolwichBank 12 Relatingcompetenciestopay Whatmakeforsuccessinrelatingpaytocompetencies Recognizethatcompetency relatedpayisnotforeveryone norforallthedifferentpartsofanorganization Ifyoudonothaveawell establishedcompetencyframeworkalreadyinusefordevelopmentandrecruitmentpurpose again competency relatedpayisprobablynotforyou Generally don tpayonly100percentonthebasisofcompetence Finally thetraditionalcompensationmantrasof keepitsimple andregularlyreview monitor andmodifyappeartoapplywithparticularforceinthisareaofpay 12 Relatingcompetenciestopay ExampleofthedefinitionofacompetenceareaattheLandRegistryAgency 12 Relatingcompetenciestopay REASONFORUSINGNONMONETARYAWARDS Supplementsafaircompensationplan Easesthetransitiontoanorganizationalunitincentiveplan Helpsintroduceanobjective drivenorcostreduction grossprofitenhancementplan Recognizesoutstandingperformance Workswellwithmostemployeepopulations 20 Nonmonetaryrewards cashequivalentsandtangibleawards Recognitionplanfortopperformers Earningthresholdforperformanceimprovementandrecognitionfortopperforme
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