(Add to Favorites | View All Articles | Resource Directory)
|
|
|
Its Spring - Time For A Compensation Program Tune Up
Now that winter has passed, the annual ritual of spring cleaning is in full swing. Spring cleaning is more than cleaning the windows and clearing the cobwebs that hid in the corners during the winter. "Spring is a time to take a serious look at your compensation program and begin planning for the next budget cycle. Depending on your organization's fiscal year, it may also be time to determine appropriate market adjustments and pay increases for the coming year," said Michael Maciekowich, National Director, Astron Solutions. Compensation program spring cleaning is more than looking at the market and determining adjustments. It is a time to step back and determine if the system remained in alignment with organizational and employee needs. Most organizations have long-term strategic plans with short-term objectives to determine progress. A compensation program designed at the beginning of a long-term strategic cycle also needs flexibility to address yearly short-term organizational objectives. As new objectives come to the forefront, or current ones are modified, the compensation plan must also change. This is a different way of thinking about compensation programs. There are a number of tools and processes to help with this matter. One is a survey of the compensation program's effectiveness for users, including executive management, department management, and employees. The focus of this annual survey is the following: ? What aspects of the current compensation program were most effective in the past year? o What aspects seem to have had a positive impact on employees in terms of retention and morale? ? What aspects of the current compensation program were least effective in the past year? o What issues did human resources seem to spend the most time discussing with employees and managers? ? What should be the focus of the compensation program in the coming year? o What are managers' and employees' expectations in terms of compensation determination? ? What will prevent this from happening? o To what extent do managers and employees understand current financial issues facing the organization? With this understanding, human resources must answer the following five questions: ? What external market challenges or pressures will be placed on the compensation system in the coming year? o Has the market shifted? Is there a new strategic need in the organization that will alter our market focus, either by type of job or market definition? Is the organization in a position to remain competitive? ? What internal job equity challenges or pressures will be placed on the compensation program in the coming year? o If a job evaluation system is used, are the factors and factor weights applicable based on current strategic direction? If not, what modifications are required? ? What employee equity challenges or pressures will be placed on the compensation program in the coming year? o Have recent market adjustments and system modifications forgotten the employees? Are we able to attract employees without causing internal pay compression? ? What financial challenges will impede the ability of the organization to successfully fund and implement needed compensation program elements? o Can the organization sustain past financial commitments to the compensation program? If not, how will spending priorities be set? ? What changes need to be made as to how employees are recognized and rewarded for their contributions to the organization? o Do the current recognition and reward mechanisms work to motivate employees to contribute to the organization's strategic direction? With these questions answered, human resource next must develop a strategic response. Take the five questions above and overlay the four question survey responses. This helps to develop a strategic response to each of the five key compensation issues. Here are basic examples of the thought process for auditing current compensation processes: ? External Equity Issues: Most effective. Continue current process. ? Internal Equity Issues: Least effective. Additional focus on internal job placement required. ? Employee Equity Issues: Least effective. Serious compression issues developed that need further action. ? Ability to pay issues: Most effective. Required funding of the program is understood and available. ? Reward and Recognition Issues: Most effective. High level of satisfaction with current performance assessment and rewards systems. With this information in hand, the final step is to create a focused strategic response to present to senior management. The result is a fresh look at your compensation program and a focused direction for the year ahead. Michael Maciekowich is a National Director for Astron Solutions. His areas of expertise include the development, design, and implementation of executive, physician, and employee total cash compensation and performance management systems in all industries. His primary focus is the integration of compensation and human resource strategies with organization-specific missions, visions, values, and strategic operating plans. Michael has twenty-five years of consulting and industry compensation experience. He can be reached at 800-520-3889 or michaelm@astronsolutions.com. Astron Solutions is a consulting firm dedicated to the delivery of HR consulting services and supportive technology. For more information about giving your compensation program a spring cleaning, please call Astron Solutions at 800-520-3889. Sharon Terry
MORE RESOURCES: News provided by Yahoo! News and Google News Small business feels the squeeze from big banks (Toronto Sun) Small biz slogs through the turmoil; agency reports demand for SBA ... - Bizjournals.com Small Business Tips for a Challenging Economy (Carteret County News-Times) Despite nervous lenders and borrowers, local small-business lending still seen as healthy (BizJournals) Getting Defensive: Small Biz Learns to Work With Military - San Diego Business Journal Obama: A War on Big Business? (US News & World Report) Small biz demands some relief from Darling - Register Small biz index shows economic strength - Bizjournals.com Small business, minorities in business on the rise in Texas (Temple Daily Telegram) Feds hope to unfreeze small business and consumer lending (BizJournals) |
|
|
|
RELATED ARTICLES
Looking into the Future for Profits How to identify future solutions and opportunities?Your power page, if used extensively, will help you to identify areas where the client may need more help or may need to purchase additional products. When you read through your notes, you will be able to pinpoint areas that will be a business pain. Retail Customer Opportunities for Pressure Washing Companies Pressure washing companies must look for customers in the retail industry to make sure they stay busy. Large Box Stores and Grocery Stores are often you best customers in that regard. Hard Money Lenders -- No Money Down The Easy Way Would it help you as a real estate investor to be able to "Close For Cash in Days," even if you're tapped out financially?Hard money lenders are perhaps the best way to get 100% financing with easy qualifying, money for fix- up, and fast closings.So what can hard money lenders do for you? Hard money lenders make relatively short term (12-24 month) loans to real estate investors for the purposes of acquiring the property and rehabbing the property. How Mastering 5 Essential Money Making Ideas Can Lead Your Business to Longterm Cashflow Essentially there are 5 tremendously powerful methods to make money online. These methods were not always available but have only become available due to the large amount of internet commerce being conducted each and every day online. Starting a Business in New Hampshire Hew Hampshire car wash market. Well we have visited every city in New Hampshire over the population of 10,000 at least twice, the larger ones four and five times talking to many people in various industries. How to Prepare for Your Start-Up Venture! When you awoke this morning, you found yourself buzzing with a fantastic idea for starting a new business and you hadn't a doubt in your mind that you could turn it into a huge success. But now what? All those great ideas floating around in your head and you're excited about making them happen, but at the moment you don't know where to begin. 11 Things Small Business Owners Can Learn From Tiger 1. There Are No "gimmes" - They count two-foot putts on the PGA Tour. Why Small and Medium-Sized Businesses Should As the owner or an employee of a small-to medium-sized business, you might have never thought about media monitoring. Maybe you are not even sure what exactly is meant by this and have thus ignored it so far. Book Yourself Solid Key #5: Go Forward With Gusto & Articulate What You Do Want your small business to flip instead of flop?! Statistically half of the entrepreneurs reading this will be out of business in three short years. Establishing a long standing, profitable and successful business absolutely depends on your ability to convey a clear message. Is This The Way Its Always Been Done? Let's face it, we all tend to get stuck in doing things 'the way they've always been done', and creating products, or services, in a similarly conservative mode.But there is another way. Pressure Washing Graders and Tractor Motors When pressure washing heavy equipment each piece of equipment has a slightly different procedure to ensure efficiency. When a pressure washing company is bidding such jobs by the piece of equipment instead of the hour, they must be cognizant of this so they can maximize profits. New Habits, Rebounding Economy Help To Sell Giftware and Collectibles Just a few years ago, when one thought of a home-based sales business, Tupperware, Avon and a host of multi-level marketing schemes might have come to mind. Today, however, changing market conditions and evolving consumer habits have converged to make home-based selling businesses a realistic opportunity with real profit potential. Alter the behavior of sales prospects in a positive way We're birds of a feather, public relations and small business. Wonderfully compatible and a perfect fit. Can Your Business Run Without You? What would happen if you decided to take an extended vacation? Would you still have the same business results when you returned?I met a business owner recently who told me an interesting story. His business was 15 years old and he had approximately 50 employees. 5 GREAT WAYS to Gain New Contacts What are the 5 best ways to gain new contacts?There are many ways to use the media to promote your business. You must ultimately decide what is best for your business. Promote Yourself More Successfully One of the great challenges for independent professionals and small businesses, especially when starting out, is generating visibility to ultimately lead to generating sales.One of the specific challenges, I have found, is knowing what to say about yourself and your operations and services when asked "so what do you do?"? Have you ever stumbled over your words when asked what you do?? Have you ever received the response, "Oh, I see", followed by silence?? Do you ever feel as though you do not know what to say about yourself?I am reminded of the 'elevator speech theory' (I do not know to whom to attribute its invention), which simply poses "if you were in a lift that opens on the tenth floor and in walks Bill Gates who asks what you do - what would you say, and you have only until the elevator gets to the bottom?"I have personally struggled with this at times, and equally have found that when I get it right, results flow - which initially could be as simple yet important of getting more time to converse with the person asking the question of you. How to Start a Carpet Cleaning Company Opening a carpet cleaning business is a great way to earn money as your own boss. This is a relatively simple business to start, with low overhead, and little experience required. Concrete Cleaning Discussed at World of Concrete Expo 03 If you are in the pressure washing business and are serious about what you clean on the ground floor, I suggest you attend the WOC. The WOC is the World of Concrete Expo in Las Vegas, which is held once per year. What Happened to the Money and Freedom? Ask anyone trapped in a cubical about their entrepreneurial dream and they will tell you, "I want to own my own business. I'll make more and have more time. A Look at Small Business Incorporating in Florida The choice to incorporate a small business in Florida has several advantages. Corporations are separate legal entities and, as such, the corporation rather than individual owners pay both the taxes and the liabilities.
|
| home | site map | articles |
| © 2006 |