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.
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
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.
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.
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?”
So what is the big difference between salary planning and budgeting and compensation management planning? Even more importantly, why should I care? Both of these are very good questions and both can be answered very quickly, making your compensation plan work in a “RESET” economy. This white paper was designed
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 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