Tag: Pay Grades

Is Sloth the Worst Compensation Sin?

[Go here for sins 1 to 4 and a bonus sin] Sin 5. Envy Envy makes managers do things that aren’t appropriate for the company. For example: Empire building. Trying to add more positions that aren’t important for the company to achieve its goals. Copycatting. The other department head has a French-speaking assistant; I want […]

Who Are Your Hi-Pos? Ten Key Characteristics

Identifying Key Positions and Skills A critical step in the process is to specifically identify the key positions that will be targeted in the succession plan. This usually includes management-level positions. It may also include highly specialized jobs that are essential to the company’s ability to meet current or future goals. Once the positions are […]

EEOC’s Five Factors for Establishing RFOA

[Go here for Considerations 1 and 2.] Consideration #3—Employer Limited Supervisor’s Discretion This considers the extent to which the employer limited supervisors’ discretion to assess employees subjectively, particularly where the criteria that the supervisors were asked to evaluate are known to be subject to negative age-based stereotypes. EEOC recognizes that in many cases to it […]

Why Should You Conduct a Compensation Audit?

There are many reasons to conduct a compensation audit, and the benefits in employee productivity and retention can ripple through the organization. In a BLR webinar titled “Compensation: How to Effectively Manage Base Compensation with Pay Grades,” Dan Kleinman outlined some of the answers you’ll get by conducting a compensation audit. Are you ready to […]

5 Critical Components Every Job Description Must Contain

The California Employment Law Letter (CELL) is written by Mark I. Schickman, and Cathleen S. Yonahara, both attorneys at the law firm of Freeland Cooper & Foreman LLP. In San Francisco. A job description need not account for every task that might ever be done, says the CELL. Here are the most critical components of […]

Implementing Pay Grades and Ranges: Common Pay Structure Issues

You also may find yourself facing employees who don’t fit into the standard pay grades for one reason or another or who have maxed out at their existing pay grade. You may even have an employee who is pointing to online salary information and claiming she’s not getting paid enough, which is a position HR […]

Metrics: Don’t Go to Management Without Them

Metrics for Compensation and Benefits Sullivan suggests that rather than trying to use a statistical method to evaluate pay fairness, use an employee survey on perceptions of pay fairness compared with work expectations. Here are the measures he suggests: Amount in total compensation and benefits costs needed to generate a dollar of revenue. (Usually expressed […]

How To Effectively Manage Base Compensation with Pay Grades

In today’s Advisor, Rizzuti, who is a principal at PHR Compensation Resources, Inc. in Upper Saddle River, NJ, shares her tips for managing base pay in low budget times. Here are the current compensation mindset issues we’re seeing, says Rizzuti: Coming out of it. All of us have been dealing with a difficult environment, Rizzuti […]

Peer Group ‘Arms Race’ for Executive Pay?

Peer Group ‘Arms Race’  Boyd, a researcher at Boston-based compensation consultant Equilar, says that pay ratcheting is a concern when companies compare themselves to their peer group. “For instance, you decide to set your CEO’s pay above the median of the peer group. Then other companies see that figure and want to set their CEO […]

Build a Perfect Peer Group for Compensation Comparisons

Who’s in Your Peer Group?  The first thing to do is to decide which companies should make up your peer group, says Boyd. Should you compare to companies:  Against whom you compete for business? Whose revenues are approximately the same as yours? With about the same number of employees? In the same industry?   Isn’t there […]