There are many questions that need to be addressed before beginning
the process of analyzing and implementing a compensation strategy
and structure. Starting with a compensation
philosophy (paying above, below or at market), and local and
national or international pay structure. Below is an example of
what is needed to create, analyze and implement a comprehensive
compensation structure.
| |
| Compensation Structure Analysis: Including
Local, State and Federal Law |
| |
| o Identify all employee compensation (Corporate
and Nationally) (10-12 Hours) |
| |
|
- Annual salaries |
- Bonuses |
| |
|
- Incentives |
- Commissions |
| |
|
- Stock |
- Other forms of pay |
| |
| o Interview department teams and select employees
(Corporate) (50-60 Hours) |
| |
To determine: |
|
| |
|
- True job description |
- Skill |
| |
|
- Effort |
- True responsibility |
| |
|
- True working conditions |
- True job title |
| |
|
|
|
| o Analysis of all employee compensation (Corporate
and Nationally) (60-80 Hours) |
| |
Analyze current compensation philosophy |
| |
Analyze job descriptions including: |
|
| |
|
- Skill |
- Effort |
| |
|
- Responsibility |
- Working conditions |
| |
|
- Education |
- Experience |
| |
Identify discrepancies within the current plan
(Corporate) |
| |
Identify like positions within the company (Corporate)
(CRA) |
| |
Comparison within like positions (Nationally)
(CRA) |
| |
Identify discrepancies within like positions
(Nationally) (CRA) |
| |
Identify discrepancies with State and Federal
mandates (EEO - FLSA - DLSA - ADA - EPA - ADEA) |
| |
|
|
|
| o Analysis of Vertical Market (Corporate and Nationally)
(40-50 Hours) |
| |
Identify competition compensation plan including: |
| |
|
- Competition |
- Competition |
| |
|
- Competition |
- Others |
| |
Comparison of like positions within the vertical
market (Corporate) |
| |
Comparison of like positions within the vertical
market (Nationally) |
| |
|
| o Travel for above analysis (Corporate and Nationally)
(50-55 Hours - Per location - if applicable) |
| |
Research select site to determine: |
|
| |
|
- Vertical market |
- Market location |
| |
|
- Size and productivity |
- Comparison within local market |
| |
Interview select site employees to determine: |
| |
|
- True job description |
- Skill |
| |
|
- Effort |
- True responsibility |
| |
|
- True working conditions |
- True job title |
| |
|
| Areas of Compensation Analysis Planning:
|
| |
|
| o Design of proposed Compensation Plan (Corporate)
(15-20 Hours) |
| |
Create compensation matrix for all employees |
| |
Create bonus and incentive plan for all employees |
| |
Create commission plan for applicable employees |
| |
|
| o Design of purposed Compensation Plan (Nationally)
(15-20 Hours) |
| |
Create compensation matrix for all site employees |
| |
Create adjusting percentage scale for variables
by state |
| |
Create bonus plan for applicable employees |
| |
Create bonus adjusting percentage scale for variables
by state |
| |
Create incentive plans for productivity including: |
| |
|
- Incentives for top producing sites |
- Incentives for top producing employees |
| |
|
- Other incentives |
- Percentage scale variables by state |
| |
|
|
|
| Areas of Compensation Analysis (Other):
|
| |
| |
Meet with Client and others regarding project
(5-10 Hours) |
| |
Meet with other colleagues regarding market research
(2-6 Hours) |
| |
Obtain State and Federal mandates for compensation
nationally (2-4 Hours) |
| |
Unforeseen issues (16-20 Hours) |
| |
Create proposal (2-4 Hours) |
| |
| List to Collect: |
| |
| |
All Compensation information for all employees
(Current and historical) |
| |
Job descriptions for all positions (filled or
not) |
| |
All locations and list of it's employees, titles,
length of tenure, education and experience |