Compensation can be a complex and challenging function and HR professionals must map out their program to effectively recruit and retain top performing human capital for their organizations. Adventuresome hikers that prefer to trail blaze instead of following well-traveled hiking paths carry GPS systems into the woods. Over the years, exploring hikers have progressed from the use of compasses for general directions to GPS hand-held devices with pin-point accuracy within a deviation of a few feet. The latitude and longitude coordinates mark a proverbial “X” or better yet “+” on the targeted end point. As Steve Covey, the author of “Seven Habits of Highly Successful People” would paraphrase, “Keep the end point in mind so you can stay focused while on the path to your designated goal or objective.”
When it comes to “Core Compensation” with base pay structures and programs, using market pay studies as your only guide would be comparable to entering the woods today with a compass. Market pay provides direction but not GPS (internal and external) comparative coordinates like an integrated job evaluation and salary administration program.
There are greater requirements for organizations to strengthen their compensation management processes by implementing the latest concepts and practices relating to the state of the art for job evaluation and salary administration as the federal government and courts become more involved with employee compensation practices, such as comparative worth. Also, any organization which is experiencing growth or change should place greater emphasis on a formalized employee compensation system which will help minimize growth or change challenges and, at the same time, help to capitalize on its strengths and opportunities for efficiency and service.
GPS utilizes three satellites to triangulate a specified location, and with a formalized compensation management base pay system, three points of reference are used to establish the internal equitable and externally competitive pay structure. The three points of reference include a comprehensive job evaluation system using 15 factors and weighted multi-degreed points, employee pay by job title, and market pay means for benchmarked positions.
GPS systems for mapping, engineering, surveying, missile guidance and numerous other applications require computer and/or electronic systems to drive or operate this technology. Historically, job evaluation systems/processes were manual and time-consuming. This has changed with the evolution of automated and integrated job evaluation and compensation management systems such as DBCompensation that complement HRIS or payroll platform systems.
Compensation management can migrate from complex to manageably simple when utilizing a proven internal and external job evaluation and salary administration system that operates on a technology driven user-friendly program. Whether your organization has one hundred or thousands of employees, a formalized core compensation management program offers several internal and external benefits that will transcend human resources base salary planning from the back-woods to the board-rooms. To learn more about DBSquared’s automated compensation management system or for a free online demo, please visit us or send us an email.