COMPENSATION MANAGEMENT Internal Job Valuing and External Market Salary Comparisons

COMPENSATION MANAGEMENT Internal Job Valuing and External Market Salary Comparisons

https://www.dbsquared.com//prodservices/salary-administration-software
January 2016

COMPENSATION MANAGEMENT
Internal Job Valuing and External
Market Salary Comparisons

An informative article written by Fred Hilling, President of Sander Consulting Services was published in the 2nd Quarter 2015 WorldatWork Journal. The article was titled, “Salary Pay Options for Control and Accuracy”. Mr. Hilling makes a case in this article based on two primary statements:

  1. “The only relevant goal for a salary administrator is to define and administer a competitive salary level for each position.”
  2. “The level of support for managers making pay decisions varies by the level of control embedded in the salary policy and accuracy of the prediction of a competitive pay level for an individual position.”

Mr. Hilling continues his position in this article by listing compensation management policies that provide control and accuracy. They include:
  • The definition of job content
  • The method of establishing internal equity
  • The definition of salary grades and ranges
  • The procedure for progression in the salary range

Mr. Hilling makes a case for accuracy based on the methods that support internal job valuing that are aligned or validated by external salary market comparisons. He describes various methods for internal job valuing which include Classification, Point-Factor Equity Plans, Point-Factor Competitive Plans, Regression Models, and Salary Market Comparisons.

We support Mr. Hilling’s position for greater compensation management accuracy by utilizing an internal job valuing process and an external market pay comparative analysis to validate the internal job placement in the salary structure and to ensure pay competitiveness with the defined salary market.

Mr. Hilling concludes the article with several statements that summarize his position on compensation management with pay options for control and accuracy. One of the statements that resonate with our compensation management philosophy follows: “Salary administrators have a fiduciary responsibility to shareholders/taxpayers. They have to balance this obligation with the continuing advice and opinions from management and employees. The best way to achieve this balance is to implement accurate measurement of competitive pay levels.”

The compensation management team at DBSquared has developed an automated and integrated internal job valuing (internal) and market salary analysis (external) system. We focus on simplifying Human Resources and Compensation Management processes through proven systems and technology. Please contact DBSquared for help with automating your job descriptions, job valuing, market salary analysis and compensation management processes and structures.

Upcoming Events

Blair Johanson will be presenting at the Arkansas Compensation Association
monthly meeting in Little Rock, AR on Wednesday, January 20, 2016

Topics include:
2016 Compensation and Benefits Survey Planning
Compensation Topics for 2016

2016 Salary Increase Projections

The average adjustment for 2016 will be three percent (3%) based on data from the following compensation/consulting groups:
  • Aon Hewitt
  • Culpepper
  • Compdata
  • The Conference Board
  • Crowe Howarth
  • Hay Group
  • Johanson Group
  • Mercer Survey
  • Towers Watson
  • World at Work
You need a third party to evaluate your organization’s current compensation practices and establish a fair, objective, defensible and competitive compensation structure including outside market data for your industry.
Please contact Blair or Bruce Johanson today to learn how we can help.


DBCompensation 9 & 10: Two-For-One

We are excited to be putting the final touches on a long list of improvements to the DBCompensation product. The updated software will be released in the first quarter of 2016 and it will include two major functionality releases in one: Major revision 9 includes many “under the hood” improvements such as updated technology and processing speed; major revision 10 includes numerous user-requested features such as a beautiful new user interface, improved readability of forms and data, ease-of-use features, improved reporting, improved data exporting capabilities, and more. As always, we will provide user meetings and training events to showcase all of the new features. Please stay tuned for forthcoming updates as we finish implementation of the remaining features and prepare for the official software release.

Free DBCompensation Demo

Contact us to schedule an online demo that will allow you to see the DBCompensation application. We would be happy to answer any questions that you may have and to tell you more about our Total Solution.

Please contact Blair or Bruce Johanson to schedule an online demo for you and your team.

DBDescriptions
Cloud based Job Description Writer

DBDescriptions is taking away the angst of developing ADA compliant job descriptions which are a critical management tool for organizations and companies.

DBDescriptions will help you develop comprehensive, ADA-compliant job descriptions anywhere you have access to a web browser.

The annual fee for unlimited use of the DBDescriptions electronic job description writer is $295 per user. Discounts are available for organizations with 10 or more users.

Please contact Blair or Bruce Johanson to schedule an online demo for you and your team.

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