Compensation薪酬福利管理

Compensation薪酬福利管理第1页/共57页StrategicPurposesofcompensationAttract(therightsortof)peopletoworkforfirmRetain(therightsortof)peopletoworkforfirmControlCostsandMaintainabudgetMotivateexceptionalperformanceRewardemployeesforpastperformanceReduceunnecessaryturnoverMaintainsalaryequityamongemployeesAlso-Reinforces(orconflictswith)theattitudesandbehaviorsencouragedwiththeperformancemanagementsystem.

第2页/共57页WhatisCompensation?TocounterbalanceTomakeupforTooffset(inducements)inexchangeforemployeecontributions.CompensationreferstothemonetaryandnonmonetaryconsiderationemployeesreceiveinexchangefortheworktheyperformforanorganizationMustlookatTOTALcompensation–notjustbasepay…第3页/共57页TotalCompensation

inexchangeforworkTotalCompensationDirect:CashIndirect:BenefitsandServicesRelationalFormsRecognition/StatusJobsecurityChallengingWorkLearningOpportunitiesPersonalSatisfactionGoodCultureBasePayIncentivesMerit/CostofLivingShortTermbonusLongtermbonusServices&AllowancesTimeawayfromwork第4页/共57页EquitytheoryOutcome(self)

Outcome(other)Inputs(self)<,>,or=Inputs(other)O/I(self)>other Betterperformance,feel valued,rationalizationtoaccount foroverpaymentO/I(self)<other restoreequity,seektoincrease outcomes,lowerinputsComparisonsmaybewith(a)peopleinsidethefirm,(b)outsidethefirm,or(c)self(whatitshouldbe).第5页/共57页Increaseinputs(e.g.,time&effort)tojustifyhigherrewardswhentheyfeelover-rewarded.Decreaseinputstocompensateforlowerrewardswhentheyfeelunder-rewarded.Changethecompensationtheyreceivethroughlegalorotheractions(e.g.,unionization,grievance)Modifytheircomparisonsbychoosinganotherpersontocomparethem-selvesagainst.Distortrealitybyrationalizingthattheinequitiesarejustified.Leavethesituationininequitiescannotberesolved.Consequencesofinequity第6页/共57页InternalAlignment

OccurswheneachjobinacompanyisvaluedappropriatelyrelativetoeveryotherjobintermsofitsabilitytohelpthefirmachieveitsgoalsRelativeworthhierarchyfordeterminingsalariesisestablishedPayratesareassignedtojobsProcessisdonethroughjobevaluationapproaches:JobrankingJobclassificationPointfactorFactorcomparison第7页/共57页InternalAlignment(cont’d)(1)JobRankingReviewingjobdescriptionsandlistingjobsinorderfromhighesttolowestworthtocompanyFairlyhardtodoinalargecompanyNeedtocreateaframeworktoprocesstheinformationfoundinallthejobdescriptionsLargelysubjective第8页/共57页InternalAlignment(cont’d)(2)JobClassificationDevelopingbroaddescriptionsforgroupsofjobsthataresimilarintermsoftasks,duties,responsibilitiesandqualificationsWagerangeisattachedtoeachclassificationreflectingrelativeworthofthejobinthatclassificationE.g.,thefederalgovernment’s‘prefixGS’Sometimesmanagerswanttoreclassifyjobstogiveaparticularemployeeahighersalary第9页/共57页InternalAlignment(cont’d)(3)PointMethodQuantitativeapproachthatusesapointvalueschemeresultinginascoreforeachjobBeginswithidentifyingasetoffactorsforwhichthecompanyiswillingtopay

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called“compensablefactors

Pointmanualcontainsdescriptionofeachfactorandwhateachdegreeofthefactorrepresents第10页/共57页InternalAlignment(cont’d)(3)Pointmethod(cont’d)RepresenttherangeofjobsinthecompanyScoresforthesejobsenablecompanytocompareotherjobstothebenchmarkjobsanddeterminewhichshouldbepaidmoreorlessJobgradesarecreatedtoreflecthierarchyofjobswithinthecompany第11页/共57页EstablishingtheINTERNALValueofJobs

Recap:SelectCompensablefactors–Dimensionsofworkthattheorganizationvalues,thathelpsitpursueitsstrategyandachieveitsobjectives.Assignfactorweights–whatistherelativeimportanceofeachdimensionofjobperformance?Weightsenablecompaniestoallocatemoreweighttomoreimportantcompensablefactorsthanotherlessimportantcompensablefactors.Establishdegreesoffactorspresentinjob–scalethefactorstoidentifythedifferentlevelsforeachcompensablefactor.Essentially,establishinganchorsfordifferentlevelsonacompensablefactor.第12页/共57页ExampleofPointValuesFactor1stDegree2ndDegree3rdDegree4thDegree5thDegreeSkillJobknowledgeExperience204060801003545556575EffortMentaldemandPhysicaldemand55707580852025303540Responsibility7085100115130Workingconditions3040506070第13页/共57页Example:Pointvalues

Degree/LevelCompensableFactor 1 2 3 4 5JobKnowledge 50 100 150 200 NAProblemSolving 50 100 150 200 260WorkingCondition 10 30 50 NA NAOthers…Inthisexample:Thecompensablefactorsrepresentthedifferentdimensionsofjobperformancethatareimportantfororganizationalsuccess第14页/共57页

Degree/LevelCompensableFactor

1 2 3 4 5JobKnowledge 50 100 150 200 NAProblemSolving 50 100 150 200 260WorkingCondition 10 30 50 NA NAInthisexample:ThecompensablefactorsrepresentthedifferentdimensionsofjobperformancethatareimportantfororganizationalsuccessThedegreesreflecttherelativelevelofresponsibility,difficulty,etc.associatedwitheachjobforeachcompensablefactor.第15页/共57页

Degree/LevelCompensableFactor 1 2 3 4 5JobKnowledge 50 100 150 200 NAProblemSolving 50 100 150 200 260WorkingCondition 10 30 50 NA NAInthisexample:ThecompensablefactorsrepresentthedifferentdimensionsofjobperformancethatareimportantfororganizationalsuccessThedegreesreflecttherelativelevelofresponsibility,difficulty,etc.associatedwitheachjobintermsofeachcompensablefactor.Thedifferencesinthenumericalvaluesassociatedwitheachdegreeforeachcompensablefactorreflectstheweightorrelativeimportanceforeachfactor.第16页/共57页

Degree/LevelCompensableFactor 1 2 3 4 5JobKnowledge 50 100 150 200 NAProblemSolving 50 100 150 200 260WorkingCondition 10 30 50 NA NAProblemSolvingDegreeanchorstatementDegree1–actionsareperformedinasetorderaccordingtoinstruction.Problemsreferredtoasupervisor.Degree3–VariousproblemsaresolvedthatrequiregeneralknowledgeofcompanypoliciesandprocedureswithinownareaofresponsibilityDegree5-Complextasksinvolvingneworconstantlychangingproblemsorsituationsareplanned,delegated,coordinated,and/orimplemented.第17页/共57页InternalAlignment(cont’d)(4)FactorComparisonRankingbenchmarkjobsinrelationtoeachotheronfactorslikementalorphysicalrequirements,skill,responsibility,andworkingconditionsCombinesjobrankingandthepointmethodMonetaryratesareincluded,soasthemarketchanges,itneedstobeupdatedfrequentlyHourlyRateSkillRespons.WorkingConditionsCarpenterAst$12.00$7.00$2.00$3.00Carpenter$18.00$10.00$5.00$3.00Supervisor$30.00$15.00$10.00$5.00第18页/共57页ExternalCompetitivenessExternalcompetitivenessensuresthatjobsinthecompanyarevaluedappropriatelyrelativetosimilarjobsinthecompany’sexternallabormarket.SalarySurveysJobPricingCompanyPayPolicyPayGradesandRangesBroadbanding第19页/共57页EstablishingMarketValueConductingaSurveytoassessexternalmarketratesIdentifyRelevantLaborMarkets(Ex:relevantlabormarketforsecretary(local)likelytodifferthanforengineer(regional))IdentifyBenchmarkJobs(KeyJobs)Thecontentsarewell-known,relativelystable,andagreeduponbytheemployeesinvolved.ThesupplyanddemandforthesejobsarerelativelystableandnotsubjecttorecentshiftsTheyrepresenttheentirejobstructureunderstudyAmajorityoftheworkforceisemployedinthesejobs.MarketSurveyDataCollection第20页/共57页ExternalCompetitiveness(cont’d)(1)SalarySurveysProvidesasystematicwaytocollectinformationaboutwagesintheexternallabormarketCompaniescanconducttheirownsurveysorpurchasesurveydataShouldlookatcompaniesinthesameindustryandotherindustriesthatmightbecompetingwithyouforemployeesShouldcomefromappropriategeographiclabormarket第21页/共57页ExternalCompetitiveness(cont’d)(2)JobPricing

Systematicprocessofassigningmonetary ratestojobssothatinternalwagesarealignedwithexternalwagesinthemarketplaceBeginswithplottingresultsofsalarysurveyfor benchmarkjobsMarketline,alsoknowaswagecurve,isdrawntorepresentrelationshipbetweenjobevaluationpointsandsalariespaidforjobsPlotactualsalariespaidforbenchmarkjobsandcomparethemtoresultsfrommarket第22页/共57页Matchingexternalpayandinternaljobevaluationpointsforkeyjobs120160200240280320360JobEvaluationpointsWITHINFirm7654321SurveyMonthlyPay($000)XXXXXXXXXX=Keybenchmarkjobs-jobevaluationpointbysalarydatapointfrommarketsurvey第23页/共57页Matchingexternalpayandinternaljobevaluationpointsforkeyjobs120160200240280320360JobEvaluationpointsWITHINFirm7654321SurveyMonthlyPay($000)XXXXXXXXXX=Keybenchmarkjobs-jobevaluationpointbysalarydatapointfrommarketsurvey“Lineofbestfit”

ExternalMarketPolicyLine第24页/共57页TheGoal–Whatshouldnon-keyjobsbepaid?120160200240280320360JobEvaluationpointsWITHINFirm7654321SurveyMonthlyPay($000)XXXXXXXXXO=Non-keybenchmarkjobs–mappingotherjobsontothepaysystem“Lineofbestfit”

ExternalMarketPolicyLineOOOOOOOORoughly$1800Roughly$4300第25页/共57页TheReality–Wheredojobsreallyfall?120160200240280320360JobEvaluationpointsWITHINFirm7654321SurveyMonthlyPay($000)XXXXXXXXXO=Non-keybenchmarkjobs–mappingotherjobsontothepaysystem“Lineofbestfit”

ExternalMarketPolicyLineOOOOOOOOOOOO第26页/共57页ExternalCompetitiveness(cont’d)(3)CompanyPayPolicyIfacompany’swagecurveisbeloworabovethemarketwagecurve,decisionshavetobemadeaboutwhethertomovewagesorleavethemastheyareFirmscanpayatthemarketlevel(follow),abovethemarket(lead),orbelowthemarket(lag)Companiespayingbelowmarketwillhaveahardertimeattractingemployees第27页/共57页ExternalCompetitiveness(cont’d)(4)PayGradesandPayRangesJobsaregroupedintojobgradesassociatedwithapayrangeEachrangehasamidpoint,aminimum,andamaximumMidpointsrepresentsanemployeewhoisfullyqualifiedandfunctioningatanacceptablelevelofperformanceRangeswillhaveoverlap—thelessoverlapthemoredifferencebetweenjobsineachgrade第28页/共57页Designingtheinternalpaystructure:

PayGradesApaygradeisahorizontalgroupofdifferentjobsthatareconsideredsubstantiallyequalforpaypurposesGradesenhanceanorganization'sabilitytomovepeopleamongjobswithinagradewithnochangeinpay.Theobjectiveisforallthejobsthataresimilarforpaypurposestobeplacedwithinthesamegrade.第29页/共57页PayRangesRefertotheverticaldimensionofthepaystructureEachpaygradeisassociatedwithapayrangeconsistingofamidpointandaspecificminimumandmaximumMidpoints:CorrespondtocompetitivepaypolicywherethepaypolicylinecrosseseachpaygradeArethecontrolpointsoftherangeRangespread–judgmentabouthowtherangessupportcareerpaths,promotions,etc.Typicallyrangebetween10and120%.Minimumofpayrange=Midpoint/[1+(1/2rangespread)]Maximum=Minimum+(rangeofspread*minimum)第30页/共57页Settingthepaygradestructure120160200240280320360JobEvaluationpointsWITHINFirm7654321SurveyMonthlyPay($000)PayGradePayRangeMaximumMinimumMidPoint第31页/共57页DifferentialRanges第32页/共57页ExternalCompetitiveness(cont’d)(5)BroadbandingConsolidatesalargenumberofpaygradesintoafew“broad”bands,usually3to10Maximumpayforaparticularbandcanbeashighas100-400%abovetheband’sminimumpayBandsareusuallywideenoughthatchangesinthemarketdon’trequireadjustmentsasoften第33页/共57页PayforIndividualPerformance

Initialpaybasedontheperson’spreviousexperience,educationandnegotiatingskillsIncreasescanbetiedtomeetinggoals,providinghigherlevelsofserviceorresultsofperformanceappraisalRedcircledjob

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beingpaidabovethemaximumwageforgradeGreencircledjob

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personbeingpaidbelowminimumofgradeManagercanadjustsalary,reclassifyorreevaluatethejob第34页/共57页

ExternalCompetitivenessEnsuresjobsarevaluedappropriatelyrelativetosimilarjobsintheexternallabormarketAffectshowattractivethefirmistopotentialemployeesAlsoaffectsattitudeandmotivationofcurrentemployees第35页/共57页AdditionalConsiderationsLaborMarketConditionsLabordemandtheories

CompensatingDifferentials–workwithnegativecharacteristicsrequireshigherpaytoattractwork

EfficiencyWageTheory–abovemarketwageswillimproveefficiencybyattractingworkerswhowillperformbetterandbelesswillingtoleave

Signaling–paypoliciessignalkindsofbehaviortheemployerseeks第36页/共57页AdditionalConsiderationsLaborMarketConditionsLaborSupplytheoriesReservationWage–jobseekerswon’tacceptjobswhosepayisbelowacertainwage,nomatterhowattractiveHumanCapitalTheory–thevalueofanindividual’sskillsisafunctionofthetimeandexpenserequiredtoacquirethem.第37页/共57页AlternativeCompensationApproaches(1)Skill-BasedPayandKnowledge-BasedPayRequireemployeestoacquirecertainskillsorknowledgetoreceiveanincreaseMakesitclearwhatemployeeshavetodotoincreasepayMayhavemoreemployeesathigherlevelsofmasterythanneeded第38页/共57页AlternativeCompensationApproaches(cont’d)(2)Competency-basedPayIdentifythecompetencies(attitudes,behaviors,abilities)employeesneedtomasterforpayraisesManagersneedtooutlineavalidprocesstodetermineachievementofcompetenciesCanleadtohigherlaborcostsoremployeefrustrationiftheydonotuseadditionaltraining第39页/共57页AlternativeCompensationApproaches(cont’d)(3)DirectMarketPricingCollectingsalaryinformationfromexternallabormarketratherthanstartingwithinternalstructurebasedonvalueofjobsWorkswellaslongasdataisaccurate第40页/共57页AdministeringCompensationAnyonemakingemployeepaydecisionsneedstoreceivetrainingHowpayratesaresetandraisesaredeterminedHowfrequentlytheyarereviewedWhatcanandcannotbecommunicatedtoemployeesClosedsystem

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detailsaboutindividualpayratesnotmadepublicexceptasrequiredbylaw(high-rankingexecutives)Opensystem

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payinformationispublic(schooldistrictswithpublishedpayscales)Communicationwillenhanceemployees’perceptionsofequityandjustice第41页/共57页TotalCompensationinPracticeOrganizationalDemandsEnvironmentalInfluencesRegulationsCompensation第42页/共57页Strategy

&CompensationInternalvalueofjobs

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strategywilldeterminetasks,duties,andresponsibilitiesafirmconsidersmostvaluableinachievingitsgoalsAfirm’sstrategyaffectsthepaymix(basepayvs.variablepay)Waystoincreaseemployeebasepay:Cost-of-livingadjustments(COLAs)

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keepsalariesfromlaggingbehindexternalmarketandtooffsetriseinpricesofgoodsandservices(usesCPI)Meritincreases

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salaryincreasebasedonhowwellemployeehasperformedVariablepay

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includesbonuses,commissions,andstockoptionsOrganizational

Demands第43页/共57页CompanyCharacteristics&CompensationSmallfirmsmaypayless-than-marketwagesEstablishedfirmshavemoreresourcestopayatorabovemarketWhetherajobisacorejoborasupportpositionaffectspaydecisionsThesizeandageofafirmplaysamajorroleindeterminingthetypeofpayitoffers(e.g.,startupfirms–stockoptions,olderfirms–morecomplexpaysystems)Organizational

Demands第44页/共57页CompanyCulture&CompensationCompanycultureestablishestheprioritiesforthepaypolicy(i.e.,iffirmvaluesteamwork,teamworkwillberewarded)CompanyculturesendsanmessagetotheemployeesaboutwhatrewardstheycanexpecttoreceiveManagersneedtocommunicatepaydecisionsandknowwhattypesofrewardsarevaluedbyemployeesOrganizational

Demands第45页/共57页EmployeeConcerns&CompensationEquityversusEqualityNotalljobsrequireequalknowledge,skills,andabilitiesorequallevelsofresponsibilityEmployeesneedtounderstandtheprocessandbelievetheoutcomesofcompensationdecisionsarefairFairnessofRewardsEmployeeswanttounderstandthatboththeprocessandtheoutcomesarefairEmployees’perceptionsoffairnessincompensationisalsoimpactedbyrelationshipwithmanagerSalarycompression

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occurswhenpayforjobsinexternalmarketrisefasterthanpayinsidetheorganization(affectedbyshortageofworkers)Organizational

Demands第46页/共57页LaborForce&CompensationLaborsupply

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whenmarketistight,companieshavetopayhigherwagestoattractandretainemployeesLabormarket’ssupplyanddemandhaveahugeimpactonmarketwages–howafirmdecideswhethertofollow,lead,orlagthemarketLeadingthemarkethelpsafirmattractmorequalifiedworkersAfirmmayleadthemarketincertaincriticaljobsPaypracticesneedtomatchemployeepaypreferencesEnvironmentalInfluences第47页/共57页Technology&CompensationTechnologyenableseasiercollectionofsalarydata-accessorconductonlinesalarysurveysSimplifyjobevaluationandmaintaincompensationrecordsCollecttimesheetsandinterfacewithpayrollsystemsEnvironmentalInfluences第48页/共57页GlobalizationGlobalorganizationshavetodecidewhethertheywanttocentralizeordecentralizetheircompensationsystemsGlobalcompanieswithcentralizedcompensationsystemsaremoresatisfiedEmployeesseelinkbetweenresultsandrewardsandmoreinternalandexternalequitySimilaritiesanddifferencesintheacceptabilityofvariousformsofcompensationarefoundinvariouscountriesLawsandnormsofcountrieswillaffectcertainpaypracticesEnvironmentalInfluences第49页/共57页Globalization(cont’d)PayingPCNs(parentcountrynationals)ismostcomplicatedUsebalancesheetapproach

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makingadjustmentsforhardship,dangerous,orprimitiveassignmentsU.S.companieshavebeencriticizedforpayinglowwagesrelativetoAmericanwagesCostoflivingandminimumwagelawshavetobetakenintoconsiderationtodocomparisonEnvironmentalInfluences第50页/共57页EthicsandCompensation“Whatgetsrewardediswhatgetsdone”Sort-termgoalsthatareeasilymanipulatedwilltemptemployeestoengageinunethicalbehaviorLivingwage

—providingafairwagesothatbasiclivingneedscanbemetEmployersmustpaythemandatedminimumwageComparableworth–eliminatinginequityinwagesbyensuringthatjobsthatrequiresimilarlevelsofeducationandexperiencearepaidatasimilarwageregardlessofgenderEnvironmentalInfluences第51页/共57