Rewarding Staff w/o Breaking the Bank
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- Linette Fleming
- 6 years ago
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1 Rewarding Staff w/o Breaking the Bank 1
2 Pay Model / Total Rewards 2
3 Pay Philosophy Lowest Pay Possible COLA Pay Highest Pay Possible Pay Philosophy Low Pay High Benefits 3
4 Pay Philosophy Market Based Pay Philosophy Examines four key principals External Equity what are employees paid in the market place for similar jobs Internal Equity are the pay scales for similar jobs alike Employee s Performance Performance Criteria Organization s ability to pay 4
5 External Competiveness Non Profit / For Profit Candidate Pool where do you find candidates to fill your positions? Where could current staff members work (for profit / non profit)? 5
6 External Equity Market Pricing Minnesota Nonprofit Salary and Benefit Survey Salary.com (IBM owned) Nonprofit / For Profit Survey Data Towers Watson Aon - Hewitt 6
7 External Market Matches Market match the job to the survey Not all survey data is alike Match the duties to the survey don t get hung up on the title 7
8 Survey Data Survey Information MN Non Profit Survey 2014 Salary.com Survey Title Program Director Program Director Position Description Manages all programs related to the organization s mission and either directly or indirectly manages all program staff. Analyzes community needs to develop new programs and enhance current programs. 50 th % $71,156 $77,500 # of Organizations Participating in Survey 65 Over 100 # of Incumbents 178 Over 700 Data Collection Twin Cities Twin Cities Supervises and implements a non-profit organization's programs. Organizes and oversees fundraising events. Responsible for budgeting and community outreach. Assesses needs and ensures that program objectives are met.. 8
9 Survey Data Levels All jobs have different levels Management, Professional, Support Staff Entry Intermediate Career Specialist Master Guru Ensure the market match matches the level 9
10 Leveling Charts 10
11 Analyze your Data # of organizations and participants Job Levels MN Non Profit Survey Account (CPA) One Level $53,136 Salary.com Three Levels Accountant I: $47,282 Accountant II: $57,130 Accountant III: $70,297 Develop the market median best for your situation 11
12 Make your Match Match your jobs to the market data Not a perfect match group matches and take an average Market Median / Mean 80% 120% 12
13 Internal Equity Three people in the same job (Robert, Beverly, and Ted) Ted is making 20% more than Robert & Beverly Is anyone in a protected class? What created the salary discrepancies (performance, time in position, level of position)? 13
14 Performance Criteria Performance Reviews Capture objective performance criteria Set employee up for success the next 12 months Varies scales can be used Consistently exceeds expectations (5) Often exceeds expectations (4) Fully meets expectations (3) Occasionally below expectations (2) Consistently below expectations (1) 14
15 Organization s Ability To Pay What can the organization pay? Establish the pool of dollars for pay increases What other employee paid factors come into play? 15
16 Salary Planning Market Match Internal Equity Check Pay for Performance Model Budget Amount Known Pay for Performance Reviews Terminology Performance pay (is this a bonus or salary increase) 16
17 Rewarding Developing Performance Criteria Increase scale is based on ability to pay and market trends 2015 Salary Increase Guidelines Less than 80% Compa-Ratio % Compa Ratio Over 120% Compa- Ratio Outstanding Performance % 4-8% 2-4% Exceeds Expectations % 3-5% 0-3% Good Solid Performance % 0-2.8% 0% Improvement Required % 0% 0% Unsatisfactory Performance - 1 0% 0% 0% 17
18 Pay Practice When do you reward Focal Point Review or Employee Anniversary Date Focal Point Review Employee Anniversary Date Pros Easy to distribute salary pool based on performance Easier to schedule Cons Time consuming Harder to determine % of salary increase 18
19 Compa-Ratio Compa-Ratio is a tool that allows you to see where the employee falls in comparison to their market match (external market place). Salary/Market Median or Market Mean 19
20 Practice Organization: Eating Healthy in Minnesota Employees: Five Employees Revenue Generation: 15 million Project Revenue next year: $16 Million Salary & Incentive Budget: 4% Salary; 1% Incentive 20
21 Employee Population Name Title Annual Salary Market Data Compa-Ratio (Salary/Market Data) Robert Executive Director $120,000 $120, Beverly Program Manager $38,000 $48, Ted IT & Web Manager $50,000 $48, Susan Grant Writer $60,000 $50, Kevin Secretary $30,000 $31, Total Salary $298,000 4% Salary Pool $11,920 1% Incentive Pool $2,980 21
22 2015 Salary Increase Guidelines 2015 Salary Increase Guidelines Less than 80% Compa-Ratio % Compa Ratio Over 120% Compa-Ratio Outstanding Performance % 4-8% 2-4% Exceeds Expectations % 3-5% 0-3% Good Solid Performance % 0-2.8% 0% Improvement Required % 0% 0% 22
23 Performance Scale Performance Scale 5 - Consistently exceeds expectations 4 - Often exceeds expectations 3 - Fully meets expectations 2 - Occasionally below expectations 1 - Consistently below expectations 23
24 Performance Worksheet Name Title Current Salary Perf. Rating % Inc. Increase Amount New Salary Market Data Robert Executive $120,000 4 $120,000 Director Beverly Program $38,000 3 $48,797 Manager Ted IT & Web $50,000 5 $48,613 Manager Susan Grant Writer $60,000 3 $50,000 Kevin Secretary $30,000 3 $31,803 Total 298,000 4% $11,920 Updated Compa Ratio 24
25 Questions Kathy Smith Partner HR Service Team
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