It’s Time To Prioritize Compensation

Through our compensation consulting and software companies, we have the privilege of working with numerous public and private organizations and businesses.  Each has its own unique organizational structure, culture, purpose, goals and compensation programs.  For most of our clients, the fourth quarter is filled with activities to accomplish goals for the current year and setting aside time to plan for the new fiscal year. As we catch our breath from the holidays and first month of the new year, it is finally time to buckle down.

What Is DBDescriptions?

DBSquared, LLC was formed when Dale Oliver, CTO/Principal of DBSquared joined with Bruce and me to develop an automated compensation management system that would improve our efficiency with job evaluation and compensation studies for our consulting company clients. Out of the DBCompensation software development, DBDescriptions was derived by offering an efficient online job description writer that would help HR professionals and all the directors, managers and supervisors that hate/dislike to develop or edit job descriptions.

How Important Is Total Rewards Philosophy?

What is your philosophy? It is important that organizations establish a total rewards philosophy as this guides the decision-making as to what the organization will offer to its employees. If the company adopts a “Risk/Reward” philosophy, then more emphasis will be placed on performance-based incentive plans/payouts and base pay will tend to be below market level midpoint by roughly 10 – 15%. If an organization adopts the “Employer of Choice” total rewards philosophy, it is making a commitment to offer a total package that attracts qualified candidates to the compensation/ benefits leader organization. If a company adopts a “Maintain Market Level” philosophy, a majority of the employees will be paid and continue to be paid around the market level midpoint, and benefit and incentives will be at the norm levels.

Hiring and Pay Discrimination Settlements Increasing – Says OFCCP

 

Hiring and Pay Discrimination Settlements Increasing – Says OFCCP

Source: HR Decisions | March/April 2016

In an article written by Susan Schoenfeld, JD, a contributing editor of HR Decisions, it appears that the OFCCP will continue to focus its efforts on systemic hiring and compensation violation cases. Ms. Schnoefeld mentions in her article that the OFFCP will expand its staff by 10 new investigators with the ability to perform complex data analyses necessary for evaluating hiring and pay practices.

What Is DBCompensation?

We believe that organizations are starting to wake up and understand that positive performance results merit adjustments in pay and not just “butts in seats or foots on floors.” Given that employees are generally paid a market level pay or something more or less depending on the organization’s compensation and benefits philosophy statement, increases in pay should only be given based on what the employee accomplished that truly made a bottom line difference for the company. Differentials in pay means that organizations need to have an effective performance appraisal program in place with proper training provided to all leadership that conduct the evaluations and a solid performance appraisal form.

What Worth Really Means

I read something recently that posed the question; “Are you worth more or less than average?”  The context happened to also pose a potential gender aspect as well, but let’s see if I can refrain from getting into too much trouble today.  Shouldn’t the question always seek to answer,

What am I worth?