Get me to 100% like everyone else!

There is a funny, but realistic and soul-searching YouTube video titled “Only 78%?!”  The video starts out with a female employee learning that she is being paid 78% of her male peer’s pay in the same position.  Throughout the rest of the video, she only commits to 78% of her job responsibilities including work hours, meetings, project completions, etc.  The video is a great reminder that though the pay gap is shrinking between genders, there is still a gap that needs to be closed.  The new pay equity term on the street is “substantially similar” and there is a legal expectation that men and women should be paid comparable pay for work performed of the same value to the organization. Many times, it is difficult to determine what value a position is to the organization and what is the appropriate pay level for that position as well as what to pay each person in the position.  Our consulting firm developed a copyrighted 15-factor job rating/valuing system in the mid 80’s with the ability to create a point value for each position within an organization.  We have embedded the job valuing system in our DBCompensation software and the software creates a job description and a job point value within minutes.  The combination of the internal point value system and external pay data from a variety of pay aggregators allows an organization to establish a defensible and equitable pay range structure based on job content and external pay market data.  This eliminates the bias around gender, ethnic background, age, etc. and creates the “substantially similar” jobs in the same pay bands/ranges.  With this approach, an organization can ensure that everyone gets to 100% excluding time in position, performance and other valid differentials that cause pay differences among employees in the same position.

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Download our free HR Guide to a Compliant, Equitable & Competitive Compensation program on the right or click below to contact us for a free demo!

Effective Compensation Systems

Effective Compensation Systems

Mark Smith, CEO and Chief Research Officer with Ventana Research wrote a recent article titled, “Effective Compensation Systems Transform Human Capital Management” in his “Analyst Perspective” blog page.  Mark makes a case in his article for compensation management and its key role for organizations that want to engage and retain highly motivated and productive employees.

Mark states in the article, “Our experience and research in this field indicate that HR and corporate management obtain the greatest value from an approach that ties compensation to performance.”

Mark mentions that HRMS systems are evolving and the most progressive systems have greater flexibility with managing compensation options that go beyond the annual employee performance review and merit pay allocations.  For more information: marksmith.ventanaresearch.com

 

Learn more about DBSquared and HRsoft for compensation management solutions.

DBSquared is a nationally recognized company providing simplified HR technology that empowers our customers. We improve our customers’ return on investment by reducing employee turnover through the development of equitable and competitive base pay structures established with proven data-driven processes.  DBSquared’s SAAS solutions are continuously improving by way of recommendations from its customer users. Learn more at www.DBSquared.com

HRsoft supplies innovative Cloud-based compensation planning software solutions that automate the compensation planning process and workflow for employers.   These, in turn, help businesses enhance employee engagement and retention.   Scalable and supported by award-winning client service, HRsoft enables organizations to manage their compensation planning process in a centralized, secure system.   Discover more at:   http://www.HRsoft.com.

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Download our free HR Guide to a Compliant, Equitable & Competitive Compensation program on the right or click below to contact us for a free demo!