咨詢師的薪酬手冊(cè)

TheCompensationHandbookLanceA·BergerDorothyR·BergerAlignmentmodel.BUSINESSCLASSIFICATIONSTRATEGIESGROWMarketshareGrowthPricetobuyshareProducedevelopmentExpandmanufacturingsalesforce&distributionsystemMarketing

MarketshareCapitalizedROIRelativequalityRelativepriceFlatDecentralizedFewerstafffunctionsUtilizeleadingtechnologiesPlaninformationsystemexpansionRecruitMinimizetrainingIncentiveis“fast”careergrowthHigh-leveltrainingCulture:highenergyRiskseekingVenturesomeInnovation/opportunisticVolatileMaximumparticipationFlexiblerangesHighincentivesEquityorientedHighcompetitiveleveltotalcompensationLongrangeorientationEARNMarketshareretentionOptimizemarginsDifferentiateproductsSegmentmarketsOptimizevaluechain

Operating

Marketingexpenses/salesR&Dexpenses/salesValueadded/employeeLimitedcentralizationHoldstaffsizeConsiderend-to-endsolutionsCreatecontinuousimprovementloops

RetainSelectivejobtraining/hiringJobcompetitionistheincentiveIntermediatefocusCulture:motivationalRiskacceptingProgressiveCreativeStableStronglyparticipativeBalancedmixofbonus/incentiveLong-rangeplan:moderateMediumcompetitiveleveltotalcompensation

HARVESTProfitvs.

marketfocusHoldprice/marginDecreasecapacityShrinksalesforceIncreaseefficiency

Financial

ROINetcashflow/inventoryGrossmargin/salesSales/assetsFunctionalFacilitiesreductionIncreasingcentralizationReductioninstafffunctionsIntroducereengineering

HoldtrainingStaffreductionMotivation:securityShort-termfocusCulture:efficiency

RiskaverseConservativePragmaticEfficientParticipativeCostcontrolTightincentives,short-termorientedMinimizelong-rangeplansReducecompetitiveleveltotalcompensationGoalsMeasuresStrategyStrategyRiskOrientationStrategyOPERETIONSCULTURECOMPENSATION1.TheroleofcompensationincorporatetransformationCustomizingacompensationsystem.HighlyandwidelypersonalizedModeratelyflexiblepackagesSelectivepersonalizationHighlystandardizedpackagesLow

Medium

High

AvailabilityoftalentHighGrowthofindustryMediumLow

1.TheroleofcompensationincorporatetransformationBusinesssituationandpaytechniques.Businesssituation/paytechniquesHighcyclicalityEmergingbusinessFinancialdifficultyInflatedwagesControllingturnoverDown-sizingCulturechangeSimulateentrepre-eurshipFrequentjobcontentshiftsProfitsharingxxxxxxxxxxxxxxxxxxxSubjectivePerf.BonusxxxxxxxxxxxOpportunity/GainsharexxxxxxxxxxxxxxxxxxxxxGroup/TeamincentivexxxxxxxxxxxxxxxIndividualincentivexxxxxxxxxxxxxxxxxxKeycontributorprogramsxxxxxxxxxxxxxxxxxxxxxxxxxCompetency,knowledgeorskill-basedpayxxxxxxxxxxxxxxxBroadbandingxxxxxxxxxxxxxxxxxxxxxLong-termplansxxxxxxxxxxxxxxxxxxxxxxxxxxPaycutsxxxxxxxxxxxxxxxPayfreezexxxxxxxxxxxxxxxxxxTwo-TieredPaySystem*xxxxxxxxxxxxLumpSuminLieuofIncreasexxxxxxxxxxxxExtendedPayReviewIntervalsxxxxxxxxxxxxWork-LifexxxxxxxxxxxxxxxxxxNon-MonetaryxxxxxxxxxxxxxxxxxxxxxxxxXsindicatetheeffectivenessofthetechnique*Newemployeeatlowerratethancurrentemployees1.TheroleofcompensationincorporatetransformationPaytechniques:descriptivematrixPaytechniqueHowdoesthistechniquework?Whatbusinesssituationsleadcompaniestoconsiderthistechnique?Whatconditionsareimportantforthistechniquetosucceed?Whataretherisksofusingthistechnique?ProfitsharingSharetheprofitonce-a-year.Profitcanbetakenas:-Cash/stock-Deferredforretirement-SplitbetweenoptionsabovePromotesemployeeinvolvementinimprovingprofits.Underachievingfinancialperformance.Needtolowerrelativelaborcosts.Desiretocreateofcommonfate.Shiftfromentitlementmentalitytoperformance.Qualityorientation.Senseofcommonfate.Managementcredibility/trust.Employeeinvolvement/participation.Opencommunications.“Accurate”financialstatements.Profitableyearsarerare.Employeeviewplanasabenefit.Linkbetweenindividualpayoutandorganizationperformanceisweak.Expectationarenotmet.Managementusestheplanasalowpaysupplement.Applicationisforced.Employeesfocusonshort-termresults.Uncontrollablefactorsexist(adverselyimpactprofits).SubjectivePerformanceBonusUnexpectedbonuses.Intentisto“present”behavioralmodelsAXZtotheorganization.Rapidchange.Trust,support,andcommitmentoneveryone’spart.Goodcommunications.Useofreinforcementinadditiontootheralternativerewards.Credibleperformance.Crediblemanagementjudges.Soundcommunicationsystem.Weakselection.Poorcommunications.Inequityofawards.Doesnotinspiremostemployees.1.TheroleofcompensationincorporatetransformationPaytechniques:descriptivematrixPaytechniqueHowdoesthistechniquework?Whatbusinesssituationsleadcompaniestoconsiderthistechnique?Whatconditionsareimportantforthistechniquetosucceed?Whataretherisksofusingthistechnique?Opportunity/GainSharing(SmallGroup,Rucker,Scanlon,Improshare,Team)Agroupofhighlyinterdependentworkersisselected.Piecerateormeasuredday,standardhours,sales,R&D,technicalmilestonesorunitmeasurescanbeused.Needtowordingroups.Highlyinterdependentemployees.Groupcaninfluenceitsownwork.Groupmustbeabletocollaborateandworktogether.Measuresmustbegroupnotindividual.Allawardspaidongroupresults.Employeestrustmanagement.Groupidentity.Groupunabletoinfluenceendresult.Payoutsmaynotrelatetocorporateperformance.Groupssometimesacttodestroyanothergroup.Manipulationofstandards.Group/TeamIncentiveRewardsquality,production,projectmilestonesorotherfinancialoroperationalobjectives.“Shares”profitaccordingtopre-determinedformula.Targetedincentiveawardsvarybasedonorganizationlevel,totaltargetedcompensation.Needtoimproveproductivityandquality.Shrinkingmargins.Focusoninformationsharing,employeecommitment/involvementandteamwork.Managementcredibility/trust.Employeeopportunitytoimpact/improve.Sufficientdemand/marketpotential.Workforceinterdependence.Adequatesupportsystems.Managementacceptanceofemployeework.Commitmenttochange.Strongmeasures.Peoplecan’tworktogether.Lackoftopmanagementcommitment.Useasa“Band-Aid”.Inadequateinformationsharing/employeeinvolvement.Inadequatedesign,administration,andfollow-through.Lackofunderstandingofrisks.Payoutsforgainsarenotaresultofemployeeefforts.Weakmeasures.1.TheroleofcompensationincorporatetransformationPaytechniques:descriptivematrix.(Continued)PaytechniqueHowdoesthistechniquework?Whatbusinesssituationsleadcompaniestoconsiderthistechnique?Whatconditionsareimportantforthistechniquetosucceed?Whataretherisksofusingthistechnique?TargetedIndividualIncentivesOnceayear:-Developapoolorfundbasedonaffordability,performance,andpay.-Distributetoemployees.Thereisathresholdbeforeapayoutcanbemade.Typicalfocusonfinancialmeasuresresultingfromcascadinggoals.Formulaforpayouttiestocorporategoalsandmeasures.Totalvalueofpooltiestototalcompensationlevels.Allocatefundsonthebasisofindividualsorgroups.Performancefocus.AffordabilityGoals/measuresfocus.Riskacceptingorentrepreneurialculture.measurableresultsandgoodfollow-up.Attainablegoals.Individualsinfluenceresults.Organizationdoesn’tdefineperformancemeasures.Entitlementcultureresistsriskbasedpay.Decisionsaretounderexecutivecontrol.Organizationunabletoobjectivelyjudgeperformance.TargetedIndividualIncentives-PieceRatePayindividualsforeachunitproducedwithpredeterminedofmoneyforeachunit(typicallysoleperformancemeasure).Differentiatebaserateonlevelsofproduction.Createaclearlinkbetweenpayandperformance.Needtomotivateemployeesinde-skilledenvironment.Simple,repetitivemanufacturingprocess.Resultsoftheworkareeasytomeasure.Minimumamountofinterdependence.Minimumneedforcooperation.TrustJobsecurity.Employeescreatecounter-productivebehaviortyingto“beatthesystem”.Highcoststomaintaintheincentivesystembecauseeverytimeatechnologicalchangeismadeoranewproductisintroduced,newratesneedtobeconsidered.1.TheroleofcompensationincorporatetransformationPaytechniques:descriptivematrix.(Continued)PaytechniqueHowdoesthistechniquework?Whatbusinesssituationsleadcompaniestoconsiderthistechnique?Whatconditionsareimportantforthistechniquetosucceed?Whataretherisksofusingthistechnique?TargetedIndividualIncentives-MeasuredDayFixedpayassumingemployeesmaintainspecifiedlevelofperformance.Guaranteedincentivepaymentinadvance.Paydoesnotfluctuateintheshort-term.Inappropriateconditionforpiecerate.Longjobcycles.Totalcommitmentofmanagement/employees.Effectiveworkmeasurement/controlsystem.Logicalpaystructure.Workeringenuityhasloweredthestandard(usedtocreatemeasureddayworkrate).Relivespressuretoperform..Escalateslaborcost(additionstostaff).KeyContributorProgramsIndividualswithhistoricalhighperformancearepricedinplan(usuallyintechnicalorR&D).Specialcompensationinadditiontotraditionalpayisgive(stock/cash).Thereisusuallyawaitingperiodtoreceivetheaward.Strongneedforinnovationculture.Retentionisimperativeforcertainemployees.Businessisingrowthstage.Specialpaymarketconditions.Abletoclearlyidentify”mustkeep”employees.Environmentmustprovideforindividualcontribution.Employeehasresourcesandcaninfluenceresources.Selectionofrecipientsnotcredible.Non-recipientsmaybediscouraged.Competency,KnowledgeorSkill-BasedPayDeterminepayprogressionbasedoncompetencies(skills,behaviors,knowledge)associatedwithsuperiorperformance.Largeskilled,technicalorprofessionalworkforceand/orpresenceofcareerladders.Focusonworkteamsandneedforworkforceflexibility.Slowergrowthrates/feweropportunities.Linkagetobroadbanding.Well-definedpositioncompetencies.Valueperson,notjob.Well-developedtrainingandassessmentprograms.Willingnesstopayforunusedcapacity.Weakenthepay-for-performancelink.Majorityofemployeeswithlimitergrowthopportunities.Unaffordablelaborcost.Investmentonfaith.1.TheroleofcompensationincorporatetransformationPaytechniques:descriptivematrix.(Continued)1.TheroleofcompensationincorporatetransformationPaytechniqueHowdoesthistechniquework?Whatbusinesssituationsleadcompaniestoconsiderthistechnique?Whatconditionsareimportantforthistechniquetosucceed?Whataretherisksofusingthistechnique?BroadbandingPaystructureswhichconsolidatelargenumbersofgradesandrangesintoasmallernumberof“bands”(ranges)withwidesalaryspreadsbetweenminimumandmaximum.Reengineering.Downsizing.Organizationrestructuring.Fewerupwardjobprospects.Needformulti-skilledemployees.Focusoncareerdevelopment.Currentprogramisnotcredible.Companyhascommitment,money,andtimeformajorchange.Highleveloftrustbetweenmanagementandsupervisors/managers.Viable/credibleperformanceandcareerdevelopmentsystemsareinplace.Workforceischangereadyandacrisisisperceived.Lackoftrustinmanagement.Poorunderstandingofbroadbanding.Poorimplementation.Lossofcontrolovercompensation.Culturalresistance.“Oldwineinanewbottle.”Inadequatesupportsystems(performance/management).Lowsenseofurgencybymanagement/employees.Long-TermPlansEmployeesareprovidedwithspecialformsofpaybasedonresultsovera3to5yearperiod.Stockoptionsgiveemployeestherighttopurchasesharesatafixedpriceoveratimeperiod,creatingalong-termfinancialinterest;alternativestockplanscanbeused.Somelong-templansusecashinsteadofstock.Needtofocusonstrategicissuesandmeasures.Attractionofkeytalent.Retentionofkeytalent.Needtocreatesenseofcommonfate.Needtoalignmorecloselywithshareholders.Encourageentrepreneurship,particularlyinstart-ups.Measuresmustbecorrectlyestablished.Employeesmustbewillingtotakerisks.Management/employeetrust.Options“underwater”.Limiterparticipationinplan.Windfallscanproduceexaggeratedpayouts.Poormeasuresofcompetitiveness.Overlycomplexstockandsurrogateprograms.Paytechniques:descriptivematrix.(Continued)1.TheroleofcompensationincorporatetransformationPaytechniqueHowdoesthistechniquework?Whatbusinesssituationsleadcompaniestoconsiderthistechnique?Whatconditionsareimportantforthistechniquetosucceed?Whataretherisksofusingthistechnique?Work-lifePackageofbenefitsdesignedtohelpbalanceconflictingdemandsoffamily,personallife,andwork.Providechildcare,paidtimeoff,familyservices,flexibleworkarrangements,eldercare,convenienceservices.Recruitingintightmarket.]Meetspecificneedsofworkforce.Strategyistobecome“employerofchoice.”Employeeswantingtomakeculturestatement.Accuratedeterminationofworkforceneeds(survey).Highlevelsofcommunication.Cost/benefitanalysis.Employee/managementtrust.Ongoingmonitoring.Payatorabovemarket.Inabilityofsupervisorsandmanagertoimplementprogram.Paylevelsnotcompetitive.Lowemployeeperceptionofvalueofbenefits.Insufficientmanagementcommitment.Non-monetaryAwardsRecognitionofoutstandingperformanceusingnon-cashawards.Focusesoncreatingawarenessofsuccessfulbehaviorsexhibitedbyrecognizedemployees(rolemodels).Awardsinclude:merchandise,travel,time-off,symbolic(trophy),praise.Awardscanbeindividual,grouporteam.Supplementtosoundcashprograms.Retentionofkeypeopleintoughmarket.Helpfulwhengoalschangefrequently.Canapplyacrossmostemployeepopulations.Recognizedemployeebehaviorsmustbecredibletoorganization.Award“judges”mustbecredible.Communicationssystemexplainingprogrambeforeandafterawardsmustbeinplace.Rewardingwrongbehaviors.Rewardingweakorwrongresults.Usingnon-cashinplaceofcashprogram.Cultureandpaytechniques.PaytechniqueRoleofemployee/managementtrustAchievementorientationCapacitytomeasureperformanceCurrentcompensationissuesProfitSharingCouldaddtodissatisfactioniftrustislow.Culturemustbeperformanceoriented.Canbeusedwhereaccountingdataisallthatisavailable.Considertotalcompensationeffect.SubjectivePerformanceBonusTrustlevelvarieswithindividual’srelationshipwithmanagement.Maybecounter-productiveinriskadverseorganization.Successfulplanshavegoodmeasurement.Opportunity/GainSharingMostneedneutraltopositivelevel.Standardsareanissue.Requiresgoodcosttogoodsandlabordata.GroupIncentiveShouldbepositive.Standardsareanissue.Varieswithdegreeandfocusdesired.Anadditivebuiltonsoundbasesalary,notasubstitute.TargetedIndividualIncentivePerceivedattainabilityofgoaliscritical.Worksbestwithachievementindividuals.Largelydependentonculture.Objectivesmustbemeasurable.Considertotalcompensationeffect.KeyContributorProgramsIfnegative,participantbacklashcouldbeaproblem.Abletoidentifykeycontributors.Anadditivebuiltonsoundbasesalary,notasubstitute.Competency,KnowledgeorSkill-BasedPayMustbeabletoassesslevelofknowledgeofskill.Canbeexpensive.Mustbejustifiedbyimpactonproductivity.1.TheroleofcompensationincorporatetransformationCultureandpaytechniques.PaytechniqueRoleofemployee/managementtrustAchievementorientationCapacitytomeasureperformanceCurrentcompensationissuesBroadbandingAspectsofapplicationrequireshighlevelsoftrustatallorganizationlevelsorcouldbeperceivedasarbitrary.Lackofqualityperformancemanagementsystemandperformanceculturewillnegateapproach.Musthavesolidlinkagesbetweencorporatestrategyandperformancemeasuresdowntoindividualand/orteamlevel.Candisruptanddistractorganizationorimprovemorale,performance,andorganizationstrengthwhencomparedtoexistingsystem.Long-TermPlansTrustinequitableassignmentandappropriatenessofmeasuresiscritical.Achievementorientationmustbefocusedoveralongerterm.Mustbeabletoselectappropriatemeasureswhichsatisfyallstakeholders.Predictinglong-termstockpayoutscanbeasourceofconflict.Work-LifeBenefitsEmployeesmustbelievemanagementissincereandsupportive.Compensationlevelsmustatleastequalandpreferablyexceedpaymarket.Non-CashPotentialforarbitrarydecisionsmakesitimportanttomakebasisofrewardexplicit.Doesnotrequireorganizationwideachievementorientation.Thereshouldbeclearmeasuresofbehaviorsandresults.Compensationlevelsshouldapproximatepaymarkets.Awardsaretaxable.1.TheroleofcompensationincorporatetransformationCultureandpaytechniques.(Continued)1.TheroleofcompensationincorporatetransformationPaytechniquePowerofthetechniquePotentialimpactonemployeecompensationOrganizationalissuesCulturecharacteristicsOrganizationalpressureforperformanceProfitSharingDiffuseunlessbackedbyculture.Canbedemoralizingifnoprofittoshare.Agoodoptionwheremeasurementcapabilityislimited.Mostcompatiblewithagroup-orientedculture.Canreinforceandhelpraiselevelofdemand.SubjectivePerformanceBonusArousesdesiretodowell,butdoesnotfocusemployeeinadvance.Unpredictable.Oftenfoundwheredirectionisunclear.Focusesonindividualaccountability.Canbesuccessfulifclearlydefined.Opportunity/GainSharingPowerfulifdoneright.Effectiveatfocusingefforts.Upside5%-15%.Downsidevariesbyplantype.Fitsagroup-orientedculturebest.Supportsemphasisonperformance.Addspeerpressure.GroupIncentiveStrongestwithsmallcohesivegroup.Upsidepotentialcontrolledbygroupoutput.Cleargoal-settingneeded.Requiresagroup-orientedcultureFitsmediumtohighdemand.TargetedIndividualIncentiveStrongestifachievablecashaward.Opportunitymustbeatleast10%-15%tohaveanimpact.Cleargoal-settingneededTotallyfocusedonindividualaccountability.Goodforhighdemandsituations.KeyContributorProgramsPowerfulforretention.Recognitioncanbemotivational.Mustbesizableandnotveryvariable.Mustbelimitedto“trulykey”contributors.Willcultureaccept”individualdeals?”Aimedatretainingprovenperformers.Competency,KnowledgeorSkill-BasedPayObjectiveisworkforceflexibility,notincentive.Shouldbelargeenoughtomakeacquiringskillsworthwhile.Mostusefulaspartofabroaderproductivityeffort.Cultureandpaytechniques.(Continued)1.TheroleofcompensationincorporatetransformationPaytechniquePowerofthetechniquePotentialimpactonemployeecompensationOrganizationalissuesCulturecharacteristicsOrganizationalpressureforperformanceBroadbandingRelievesemployeefrustrationoverperceivedlossofcareeropportunitiesandpaygrowth.Focusesonperformancewhensupportsystemsareinplace.Someredistributionofpaybasedonperceivedindividualactual/potentialcontribution.Needforadequateassessmenttools.Organizationcommitmenttoimplementandsupport.Strongrationaleisrapidorganizationalchange.Toleranceofambiguitynecessaryofbandswillbestructuredsimilartogrades.Highcommitmenttocommunications.Betterformediumdemand.Unprovenincreatinghighperformancedemand.Long-TermPlansDrivenbysignificantcapitalaccumulation.Maximizeorminimizecompetitivenessoftotalcompensation.Executivesmustbeabletocollaborateandsacrificeunitforcompanyperformance.Highperformancepressuresoptimizesuccess.Work-LifeBenefitsWorksbestasloyaltyandmoralebuilder.Helpsrecruitmentandretention.Reducesemployeeout-of-pocketexpenses.Communications,supportingpoliciesandprocedures,orientationofsupervisorsiskey.WorksbestinIT,R&Dandrelatedculturesandinyoungerworkforce.Fitsallsituations.Non-CashRolemodelingandpublicrecognitioncanbeanincentiveforfuturebehavior.Shouldmaketoimpact.Goodoptionwhengoalsareunclearofchangingfrequently.Highlycollaborativeculturesmightresistindividualorgrouprecognition.Fitsallsituations(individual,group,orteam).Underthemostsuccessfulscenario,abusinessshouldplanacompensationtransformationbeforeitisdestabilizedbymarket,competitive,orinternalchangetriggers.Acompany’’spotentialforsurvivalisincreasedbyfastresponseandquickadaptation.Thefollowingsimplifiedstepscanbehelpfulduringthetransformationprocess:1.TheroleofcompensationincorporatetransformationDeterminethedirectionofthetransformation,thatis,theaccelerationordecelerationofgrowth.Determinetheamountaffordablebythebusinessunitovera2-to3-yearperiod.Identifythecharacteristicsofeachdiscretepaymarketinwhichthecompanycompetesfortalent.Withineachpaymarketandwithinthecompanyasawhole,assessthecompetitiveleveloftotalhumanresourcescost(includebasesalary,variablepay,benefits,training,education,work-life,andotherrelevantprograms)oftheworkforce.Witheachpaymarket,determinethedifficultyofrecruitment,timetorecruit,turnoverrate,skilllevelsrequired,andtrainingnecessary.Assessaffordabilitybasedonthefeasibilityofbasingmorepayonincrementalprofits.AssesschangereadinessIdentifypaytechniquesrelevanttoeachpaymarket.Utilizesuccessionandworkforceassessmenttocustomizecompensationprogramsformust-keepemployees.Developcustomizedpaystrategies,administrativeprogress,performancemanagement,andcareermanagementprogressforeachtalentpaymarketbycombiningthosewithsimilarcharacteristicsandsegmentingothersthatdonotfittogether.Communicatenewprogram.1.TheroleofcompensationincorporatetransformationTheevolutionofrewardmanagementinanorganization.Emphasison:JobpersonLowMediumHighHigh【1】Start-uporentrepreneurialphaseEmphasis:ExpediencyPlanType:Person-baseddiscretionaryApproachMethod:Subjective(“gutfell”)SetBy:CEO90%Staff10%【5】Continuouslychanging,highlycompetitivebusinessenvironmentsEmphasis:OrganizationaleffectivenessPlanType:Person-basedintegratedRewardSystemsMethod:MarketPricing/Skill-basedPaySetBy:CEO/LineManagers70%Staff30%Medium【2】EarlygrowthphaseEmphasis:InternaljobequityPlanType:Job-basedQualitativeSystems

Method:Ranking/GradeClassificationSetBy:CEO/Linemanagers60%

Staff40%【4】IncreasinglycompetitivemarketsEmphasis:IndividualmotivationPlanType:Job-basedQuantitative

Systems+IncentiveplansMethod:Sameas【3】SetBy:CEO/Linemanagers50%

Staff50%Low【3】LatergrowthphaseEmphasis:ControlPlanType:Job-basedQuantitativesystems

Method:PointFactor/FactorComparisonSetBy:CEO/LineManagers20%

Staff80%4.Compensation:anoverviewJobDocumentationThefirststeptowardprovidingasoundbasisfromwhichtodocumentanorganization’’sjobsistoanalyzetheorganization’sculture.Thesecondstepistodeterminewhatcategoriesorparameterswillbeanalyzed.Thethirdstepinthejobanalysisprocessistocollectjobcontent.Thefinalstepinthejobanalysisprocessistodocumentjobcontent.5.JobanalysisandjobdocumentationWhatarethosedeterminantsofpay?Organization-LevelDeterminants:Industry,Size,Performance,Abilitytopay,Location.Job-LevelDeterminants:Organizationlocation,organizationlevel,Jobsize.Employee-LevelDeterminants:Roles,Skill,Competencies.8.Retrieving,manipulating,andanalyzingcompensationdataDevelopingcompetitivecompensationprogramsWhoarethecompetitiveforresources?Whatarethedistinguishingcharacteristicsofmybusiness?Howshouldmybusinessfitwithprevailingmarketpaypractices?Whatfunctionsarecriticaltomybusinesscompetitiveadvantage?Howdoeslocationaffectmyabilitytoattractskilledpersonnel?Gatheringandinterpretingcompetitivemarketdata.Compensationdatabase-tokeepcompensationprogramcurrentwithchangesinthemarket.DerivingmarketdataforlargepopulationsandHYBIRDjobs.9.DevelopingcompetitivecompensationprogramsTypicalcompensationbybusinessmaturitystageComponentEmbryonicgrowthMatureAgingBaseLowCompetitiveCompetitive/HighHighShort-termincentivesCompetitiveCompetitiveHighLowLong-termincentivesHighCompetitiveCompetitiveLowBenefitsLowCompetitiveHighHighPerquisitesLowCompetitiveCompetitiveHighOverallpatternAdaptiveAdaptiveRegulatedRegulated9.DevelopingcompetitivecompensationprogramsBusiness-compensationstrategyflowCompensationstrategyCorporateMissionPeopleStrategyOrganizationCultureBusinessStrategy10.ThedevelopmentofsalarystructuresBasepayprogramarchitectureJobAnalysisJobEvaluation?????????PayStructurePayDecisionPerformanceAssessmentPolicies/ProceduresBudgetProcess10.ThedevelopmentofsalarystructuresOrganizationandSalaryStructureMature,HierarchicalOrganizationFluid,FlatOrganizationNetwork,VirtualOrganizationMidpoint-drivensalaryrangeswithtypicalspreadsof35-50%BroadbandswithtypicalemphasisonmarketvaluesanddemonstratedindividualcompetenciesorskillsFluid,market-driven,individuallybasedframeworkNumerousgradesfromtoptobottom;heavyoverlap200+%rangespreadsorrangeswithoutdollardefinitions;moderateoverlapPerson-basedframework,dependingoncapabilities,contribution,endresults10.ThedevelopmentofsalarystructuresFive-bandmodel.LeadershipManagementConsultingProfessionalAssociate10.ThedevelopmentofsalarystructuresAtypologyofcompetency-relatedpay.FocusofCompetencyDefinitionJobRolePersonMethodofLinkageEvaluationPointfactorplansandgradestructurese.g.PortsmouthHousingTrustRoleclassificationsystemsintobroaderpaybands,e.g.MotorolaPerson-basedpaysettinginverybroadbands,e.g.SmithKlineBeechamPayAdjustmentSkill/competencepaystepsinrangese.