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?

An Internal Rating System for Base Pay: Is it Necessary?

Let’s face it, in today’s time, with the EEOC and the OFCCP adopting more sophisticated technologies to ensure best practices, organizations need to be able to ensure fair pay by adopting an internal job rating system. In addition, market data is becoming less reliable every day so are you going to use external comparisons alone to determine the cost of your largest expense, compensation?

The Paycheck Fairness Act has already been passed through the U.S. House, now it is lingering in the Senate.

The Paycheck Fairness Act has already been passed through the U.S. House, now it is lingering in the Senate. The Paycheck Fairness Act has resulted from years of legislation being passed to eliminate the gender gap. However, today women are still being paid approximately 77 cents of every dollar being paid to men. Now is the time to ensure that equal pay is given for equal work. If you do not have a structure in place that can determine comparable worth at your organization, there has never been a better time to look at such tools. When looking for a system, ensure that it can perform the following:

Easy to read analyses for pay equity.

An evaluation system based on

Salary ranges are necessary to guide pay at organizations.

Complimentary article:

Similar to pavement markings that drivers use to guide them while in motion on the road, salary ranges are necessary to guide pay at organizations. Salary ranges are the boundaries for compensation, and yet, you would be amazed how many organizations do not have them in place. Salary ranges that are fair and equitable can assist in many aspects. Assigning starting pay for a position, moving an employee through a job allowing them opportunities to earn more pay and using the different quartiles to figure out what would be the best way to allocate merit pay are three ways that these boundaries can be a huge benefit for companies. The white paper “Salary Range Boundaries” is below. If you do not have a structure in place or if you feel it is time to review your salary ranges, this is a perfect time.

Download “Salary Range Boundaries”
Tips and Tools – Reliable Market Data

Market data is becoming a hot topic as compensation management is moving to the front burner for many organizations. We released an article earlier in the year, “Reliable Market Data – Does it Exist and Where?” In a recent newsletter that was released by World at Work, they released a related article not only addressing reliable market data but also offering tips on how to determine if the information is accurate. If you would like to learn how to identify bad data, please download the article below, “Salary Data Red Alert: Do You Know Where Your Compensation Data Came From?” written by Pawan Singh.