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第一页,共二十三页。JobGrades&SalaryRanges第二页,共二十三页。Compa-ratios(CR)

acompa-ratio(comparativeratio)isameasureoftheextentwhichtheaveragesalariesinagradedeviatefromthetargetsalary.itisusedtocompareactualaverageswiththetargetsalarytoindicatetheextentwhichsalarylevelsarehighorlow.theformulaforcalculatingacompa-ratiois: Averageofallsalariesinthegrade---------------------------------------------------------------------------------------------------------------------------------------------------------------x100 Midpointofthesalaryrangeacompa-ratioof100indicatesthattheaveragesalaryisalignedtothemidpointofthesalarygradeandnocorrectivestepsneedtobetaken.第三页,共二十三页。Compa-ratios(CR)acompa-ratioof80wouldindicateaneedtoinvestigatewhyaveragesalarieswerelowandpossiblynolongercompetitive.acompa-ratioof120wouldsuggesteithertherewerealotoflong-servicestafforthatstaffwerebeingoverpaid,pa-ratioanalysiscanrevealasituationwhereearningsdrifthastakenplace.第四页,共二十三页。CompetitivePosture(CP)CompetitivePostureisameasureofhowcompetitivethesalaryiswithrespecttoagivenmarketbenchmark.CompetitivePosturecanbeusedtomeasurethecompetitivenessofbothcompany’sorindividual’ssalarycompetitivenessinthemarketCompetitivePostureforacompanyiscomputedas:CR=AverageofallSalariesinagivenJobGrade MarketBenchmarkSalaryCompetitivePostureforanindividualiscomputedby: CR=SalaryoftheindividualEmployee MarketBenchmarkSalary

第五页,共二十三页。SalaryAdministrationMinimumSalaryPoints1.Minimumsalaryforthegrade2.MinimumforJobInthemarket3.Setcompa-ratioat1.004.Overlapbetween60%to80%5.Avoidleapfroggingtendencies6.Allowforrealisticminimum第六页,共二十三页。SalaryAdministrationMaximumSalaryPoints1.Maximumsalaryforthegrade2.Maximumforjobinthemarket3.Keepsalaryrangeshort(8-12years)4.Maxminratiobetween1.5to2.05.Setcompa-ratioat1.006.Allowforrealisticmaximum第七页,共二十三页。SalaryAdministrationMaximum1.Maximumsalaryforthegrade2.Maximumforjobinthemarket3.Keepsalaryrangeshort(8-12years)4.Maxminratiobetween1.5to2.05.Setcompa-ratioat1.006.AllowforrealisticmaximumMinimum1.Minimumsalaryforthegrade2.MinimumforJobInthemarket3.Setcompa-ratioat1.004.Overlapbetween60%to80%5.Avoidleapfroggingtendencies6.AllowforrealisticminimumMinimumAndMaximumPoints第八页,共二十三页。StreamliningofSalaryRanges(Executives)Effective1January1995*Mosttypicalvaluecorrespondstotheworkingmidpointoftherange@Derivedfromannualbasesalary#Dispersionfactorof+/-25%aroundQ1values第九页,共二十三页。JobReferenceLevels

Thereferencejobdescriptionpreparedtoassistnon-hayevaluatedcompanieswithjobmatching,areeachevaluatedandqualityassuredagainstHay’sstandards.Theevaluationsarethenslottedintotherelevantjobunitrangewhichformsthereferencelevels.ThesereferencelevelsandcorrespondingjobunitrangesarenowstandardthroughoutallHay’smainremunerationsurveysandaredetailedbelow.第十页,共二十三页。JobReferenceLevels第十一页,共二十三页。SalaryAdministration

DeterminingEntrySalary 1. Marketvalue 2. Candidate'sexistingsalary 3. Basicqualifications 4. Additionalqualifications 5. Relevantworkingexperience 6. Relatedworkingexperience 7. Completionofnationalservice 8. Geographicallocationofcompany 9. Natureofindustry(dirtyorhazardous) 10. Minimumsalaryforjobgrade 11. Salariesofexistingincumbents 12. Re-grossingannualsalary第十二页,共二十三页。IncrementalSystems

Incrementalsystemsvaryfromrigidprocedureswithfixedandpredeterminedmovementsthroughascalerelatedtoage,serviceinthecompanyorserviceinthejob,toflexiblesystemswheremanagementexercisescompletediscretionovertheawardandsizeofincrementswithoutanyguidelines.Betweenthetwoextremesthereisamiddlegroundofsemi-flexiblesystems.第十三页,共二十三页。Fixedscaleswithautomaticprogressionwhereindividualsmovethroughjobsorgradesbypredeterminedstepsrelatedtoageorservice,thesecouldberateforagescales.Fixedscalesarecriticizedbecausetheydonotgiveenoughincentivetoeffortandtheimprovementofperformance-promotionmightonlybeanawardinthelongerterm,ifatall.Theyaredefendedbecausetheycanbeoperatedwithcompleteimpartiality-manypeople,especiallycivilservants,questionthepossibilityofdeterminingafairrelationshipbetweenmeritandrewardwheretheonlymethodofmeasurementisthesubjectiveopinionofsomeone’sboss.IncrementalSystems第十四页,共二十三页。Fixedscaleswithlimitedflexibilitywhereitispossibletogivedoubleoreventripleincrementstohighflyersandwithholdincrementsforpoorperformers.Semi-fixedscaleswhichallowautomaticprogressiontoa‘meritbar’atwhichprogressionforsomepeoplemaystopwhileothercanadvanceatdifferentratesaccordingtoperformance.Fixedparallelscaleswhichallowfortheexerciseofmoremanagerialdiscretionbyprovidingdifferentpatternsofincrementalprogressionfordifferentlevelsofperformance,asshowninfigure10.IncrementalSystems第十五页,共二十三页。Variableprogressionwithguidelineswheretherearenofixedincrementalpoints,butmanagersaregivenmoreorlessmandatoryinstructionsonhowtheyshouldexercisetheirdiscretion.Theminimumguidelinesinthissystemnayconsistoftheannualincrementsthatcanbeawardedfordifferentlevelsofperformance.Thesemaybeextendedinmorerigidsystemstogivetheproportionofstaffwhoshouldreceiveagivenincrement.Variableprogressioninrangewithoutguidelineswheremanagementdiscretionintheawardofincrementsandthedeterminationoftheirsizetendstoberestrictedonlybythemaximumofthesalaryrangeandthebudgettheyareallowedforsalaryincreases.IncrementalSystems第十六页,共二十三页。AnnualIncrementFixedincrementsystem -Fixed$ -Fixed%Variableincrementsystem -Fixedvariable -FixedPlus(meritincrement)Flexibleincrementsystem -Fixedcomponent+flexiblecomponentMatrixsystem -Salaryquadrantvs.performancematrix第十七页,共二十三页。SalaryProgressionCurve第十八页,共二十三页。IncrementvsPerformanceMatrix第十九页,共二十三页。MarketValueComputation第二十页,共二十三页。SalaryReviewGuidelinesOverallcostguidelines inwhichabudgetofx%ofpayrollisimposedformeritreviews.Thisistheessentialguideline,andmanagersmaybelefttodistributethepoolastheyplease,orsubjecttovariousdegreesofcontrol.Guidelinesmaximumandminimumincreases managersaretoldthatthe

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