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Despite the fact that most comp managers are crazy busy, it’s time to add a task to the mix, says Dorf—a thorough compensation program audit. And, yes, in spite of what could be construed as a self-serving suggestion, he wants you to hire someone else to do it. Dorf is managing director of Compensation Resources, […]
People Don’t Understand the Demographics Companies tend to relax about compensation during an economic downturn, but that may be a mistake, says Dorf, who is managing director of Compensation Resources, Inc. in Upper Saddle River, NJ. “I don’t think people understand how demographics fit with this recession,” Dorf says. The number of people who are […]
Even with pay for performance, says Epps, managing partner of EP2S Compensation Solutions, LLC, many companies are promoting the wrong people and granting raises for the wrong reasons. Promotional raises increase labor costs, but don’t necessarily help the company perform better. “Whether the company’s performance is good or poor doesn’t make much difference in labor […]
Rather than basing promotions and their associated salary increases on acquired knowledge and certifications, says Epps, who is managing partner of EP2S Compensation Solutions, LLC, base them on competencies. A competency-based job evaluation system is a method of structuring and evaluating broadly defined jobs based on a demonstrated level of job complexity and job accountability, […]
Here’s a chart that will help with evaluating compa-ratios, says Carroll, who is Director of Professional Services & Education at PayScale, Inc. Internal Compensation Review: Compa-Ratios Job Title Grade Base Min Mid Max Compa -ratio Base> max? Team Leader-Administration 7 95,000 54,136 64,579 76,109 1.471 YES Team Leader-Operations 7 91,000 54,136 64,579 76,109 1.409 YES […]
Check compa-ratios, check external equity, see who’s over the maximum—it’s not rocket science, but it’s necessary, says Carroll, who is Director of Professional Services & Education at PayScale, Inc. Quick Review: The Numbers that Matter Analysis begins with an assessment of internal compensation rates to identify any aberrations (via the compa-ratio) and external equity (via […]
Anderson, who offered five dangerous weaknesses of sales people in yesterday’s Advisor, is president of the Selling Skills Institute and developer of the proprietary Shift Thinking Selling Methodology. He asks, How many of those weaknesses are represented on your sales team? Look Only for ‘A’ Players “A” players are not a commodity, says Anderson; you’re […]
Here are five classic sales weaknesses to be on the lookout for, says Anderson, who is president of the Selling Skills Institute, and developer of the proprietary Shift Thinking Selling Methodology. Weakness #1—Unsupportive Buying Habits People tend to have buy cycles, and those of your candidates are an important indicator. People with short buy cycles […]
[Go here for questions 1 and 2] 3. What is the Alignment of Incumbents Within Their Pay Grades? Perform the following analyses, suggests Carroll: All positions in the organization compared to the midpoint (market) Positions within each pay grade compared to the midpoint (market) Analysis of incumbents within each pay grade compared to the midpoint […]
Carroll talks of one CEO who was frustrated about compensation. He had his 12 top people that he wanted to compensate well, but he couldn’t seem to afford to do it. He thought that setting up a formal comp program would interfere with his ability to do what he wanted, but Carroll said to him, […]