Professional Documents
Culture Documents
Upcoming Webinars
The Three Rs of Talent Management Rs
Tuesday, August 2, 10:00 am to 11:00 am CDT
7/11/2011
Introduction
Edward R. Rataj R Managing Director, Compensation Consulting Certified Compensation Professional (CCP) Frequently quoted in national news publications such as the Wall Street Journal and Smartmoney.com
7/11/2011
Overview
Explore turnover in the rebounding economy Examine compensation economics 101 Offensive and defensive strategies Review steps for designing a market-based compensation system Recognition and sustaining high performance through a merit matrix Answer your questions
BureauofLaborStatisticsTableA4:Employmentstatusofthecivilianpopulation25yearsandoverbyeducational attainment
7/11/2011
www.worldatwork.org/waw/adimComment?id=35633
7/11/2011
Compensation Economics
Why is a burger flipper no long an entry level job? Why does minimum wage negatively impact the employees whom it is designed to protect? Why are banking executives leaving the industry? If options are significantly under water and the board refuses to re-price, what is the potential outcome?
Supply of Labor
Supply of Labor
P3
C Cost of Labor
P2
P1
Q1
Q2
Quantity of Labor
Q3
10
7/11/2011
P3
C Cost of Labor
P2
P1
Q1
Q2
Quantity of Labor
Q3
11
Supply of Labor
P*
Q*
Quantity of Labor
12
7/11/2011
P3
Price Floor
C Cost of Labor
Q1
Quantity of Labor
Q3
13
C Cost of Labor
P1
Price Ceilng
Q1
Quantity of Labor
Q3
14
7/11/2011
Cost of Labor
P2
Q2
Quantity of Labor
15
Aggressively pay for performance via a merit matrix (further discussion in the following slides)
16
7/11/2011
17
18
7/11/2011
19
20
10
7/11/2011
Job Documentation
Job Documentation
Market Matches
21
Industry
Industry specific Broad spectrum of employers
22
11
7/11/2011
23
Range Spread
Midpoint Differential
midpoint
24
12
7/11/2011
25
25
26
13
7/11/2011
27
COMPENSATION
Low 2 High 1
28
14
7/11/2011
COMPENSATION
High
Low
29
Performance Exceptional Exceeds Expectation Effective Development Needed Critical Need for Improvement
Quartile in Range 2 3 3.5% 3.0% 3.0% 3.0% 2.5% 2.5% 2.5% 2.0% 2.0% 2.0%
30
15
7/11/2011
31
32
16
7/11/2011
Typical
Results
Matrix Performance Exceptional Exceeds Expectation Effective Development Needed Critical Need for Improvement Cost Summary Payroll: $30,400,917 Merit Increases: $1,071,120.86 Percent Increase: 3.5% Cost Detail Performance First Exceptional $83,979 Exceeds Expectations $109,175 Meets E M t Expectations t ti $108,116 $108 116 Development Needed $32,654 Critical Need for Improvement $0 Total Cost: $1,071,121 Employee Count Detail Performance Exceptional Exceeds Expectations Effective Development Needed Critical Need for Improvement Total Employees: 536 1 24 36 52 36 24 Quartile in Range 2 3 36 16 60 20 96 16 40 20 32 12 4 4 0 4 4 4 Quartile in Range Second Third $184,222 $88,669 $158,310 $58,617 $191,830 $191 830 $36,698 $36 698 $0 $0 $0 $0 Fourth $15,200 $0 $3,650 $3 650 $0 $0 Budget $: Budget as % of Payroll: $1,064,032 3.5% 1 8.0% 6.0% 4.5% 4 5% 2.0% 0.0% Quartile in Range 2 3 7.0% 6.0% 5.0% 4.0% 3.5% 3 5% 3.0% 3 0% 0.0% 0.0% 0.0% 0.0% 4 5.0% 2.5% 2.0% 2 0% 0.0% 0.0%
33
33
Results
$600,000
$500,000
Meets Expectations
$300,000
Exceptional
$100,000
$0 1 2 Quartile in Range 3 4
34
17
7/11/2011
Results
$400,000
$350,000
$300,000
Fourth
Cost
$50,000
First
$0 Exceptional Exceeds Expectations Meets Expectations Performance Development Needed Critical Need for Improvement
35
Employee Analysis
Job Title HR Generalist IT Analyst Construction Manager Controller Maintenance Manger President
Salary Grade Min Max $47,042 $53,058 $47,042 $70,169 $47,042 $153,058 $72,915 $84,892 $72,915 $112,270 $72,915 $229,587
PerfMerit Quartile ormance Percent 1 2 4 4 2 3 4 4 5 2 3 5 6.0% 5.0% 5.0% 0.0% 3.5% 6.0%
36
18
7/11/2011
37
38
19
7/11/2011
Additional Considerations
Nonprofit compensation Executive compensation in closely held businesses Fair pay based on race and gender Online performance management Sales compensation
39
CBIZ CompCasts
Nonprofit Quick Guide to Navigating Intermediate Sanctions Creating and Using a Salary Increase Matrix Fair Pay: Maintaining Equality in Todays Litigious Society
20
7/11/2011
Questions?
Ed Rataj, CCP Rataj Managing Director Compensation Consulting CBIZ Human Capital Services (314) 692-5884 erataj@cbiz.com
41
21