Hi,
this is nut from Singapore. Just joined this forum and would like someone to enlighten me on some questions.
1) what are some of the interesting compensation trends and challenges in the global frontier? What are your views on them?
2)How these practices are implemented and received by (your) employees? How can these practices help to meet the business objectives of the company?
ReGards
Nut
12.07.06
From Singapore, Singapore
this is nut from Singapore. Just joined this forum and would like someone to enlighten me on some questions.
1) what are some of the interesting compensation trends and challenges in the global frontier? What are your views on them?
2)How these practices are implemented and received by (your) employees? How can these practices help to meet the business objectives of the company?
ReGards
Nut
12.07.06
From Singapore, Singapore
Hi Nut,
Current Compensation Trends and views in NA
• Organizations need to develop a compensation philosophy and direction in writing that is reviewed by the Board of Directors and agreed to by your managers.
• Particularly in an entrepreneurial, market-driven company, the compensation philosophy includes a method for grouping similar jobs for purposes of broad banding, since promotional opportunities are limited.
• It should include a responsible, measurement system for awarding variable pay with less emphasis on increasing base pay, and more emphasis on distributing gains via bonuses that reward actual goal attainment.
• Goal attainment can be rewarded for both individual and organizational goal achievement to foster teamwork and eliminate the “lone ranger” mentality.
• Real goal achievement is attached to outcomes or deliverables that are measurable or offer a shared picture of what success looks like. They should not reward checking items off a “to-do” list.
• As the cost of benefits has increased, their place in a total compensation package has increased in importance.
• The budget for salary, compensation, and benefits is not unlimited in most organizations. Thus, in addition to traditional increases to base pay, and variable rewards, such as bonuses, profit sharing and gain sharing, attention to quality of work life rewards is perhaps the newest trend.
These can include the following.
• Payment of a one-time, lump sum payment for a result or outcome that deserves recognition.
• Payment of smaller rewards with “thank you” notes for above the call of duty contributions These are not necessarily tied to an achieved result, but they are contributions, that when emphasized, increase the probability of results.
• Increased emphasis on additional benefits such as pre-paid legal assistance, educational assistance, and vision insurance.
• Increased opportunity for flexible work arrangements and job-sharing.
• An organizational emphasis on the training and development of employees.
• Clear career paths so employees see organizational opportunities.
In this last category, quality of work life rewards, your imagination is your only limitation.
The key is to ensure fairness and consistency for similarly performing and contributing people, and whenever possible do even more for those employees who measurably contribute more to the organization’s success. ( this opens up a debate – about how and whether your organization provides an equal opportunity for all employees to excel.)
Organizations are moving toward salary and compensation systems that emphasize flexibility, goal achievement, and variable pay based on performance, and less emphasis on increases to base pay. They are using bonuses based on profit and accomplishment to add to employee compensation. The rising cost of benefits is causing rethinking of their place in the compensation system.
Forward thinking organizations are emphasizing “quality of work life” rewards and recognition to add value of the total compensation package.
Here is a list of a few that come to mind, I will refer to as soft compensation. You can probably think of more.
1.How rapidly is your employer preparing you for promotion?
2.Are your job duties challenging?
3.Do you enjoy your current job?
4.What is your work environment like?
5.Is the property properly maintained?
6.Is it clean?
7.Are people polite and friendly? (Or demanding and overbearing? Or do they continually put people down?)
8.Does the management team really care about people? (Or are they just giving it lip service?)
9.Do your bosses have reasonable expectations from you and your Department? (Or is it a pressure cooker?)
10.Are you working in a low cost of living area? Or a high cost of living area?
11.Do you have a long commute to work? Or a short commute?
12.Do you have an ergonomically correction workstation?
13.Are your religious beliefs respected and provided for?
14.Is there a current balance to work and family life?
Organizations can use their compensation as one of the most important
communication tools, to send a message about your organization’s expectations and goal achievement rewards.
Cheers,
JEV
From Canada, Ottawa
4Current Compensation Trends and views in NA
• Organizations need to develop a compensation philosophy and direction in writing that is reviewed by the Board of Directors and agreed to by your managers.
• Particularly in an entrepreneurial, market-driven company, the compensation philosophy includes a method for grouping similar jobs for purposes of broad banding, since promotional opportunities are limited.
• It should include a responsible, measurement system for awarding variable pay with less emphasis on increasing base pay, and more emphasis on distributing gains via bonuses that reward actual goal attainment.
• Goal attainment can be rewarded for both individual and organizational goal achievement to foster teamwork and eliminate the “lone ranger” mentality.
• Real goal achievement is attached to outcomes or deliverables that are measurable or offer a shared picture of what success looks like. They should not reward checking items off a “to-do” list.
• As the cost of benefits has increased, their place in a total compensation package has increased in importance.
• The budget for salary, compensation, and benefits is not unlimited in most organizations. Thus, in addition to traditional increases to base pay, and variable rewards, such as bonuses, profit sharing and gain sharing, attention to quality of work life rewards is perhaps the newest trend.
These can include the following.
• Payment of a one-time, lump sum payment for a result or outcome that deserves recognition.
• Payment of smaller rewards with “thank you” notes for above the call of duty contributions These are not necessarily tied to an achieved result, but they are contributions, that when emphasized, increase the probability of results.
• Increased emphasis on additional benefits such as pre-paid legal assistance, educational assistance, and vision insurance.
• Increased opportunity for flexible work arrangements and job-sharing.
• An organizational emphasis on the training and development of employees.
• Clear career paths so employees see organizational opportunities.
In this last category, quality of work life rewards, your imagination is your only limitation.
The key is to ensure fairness and consistency for similarly performing and contributing people, and whenever possible do even more for those employees who measurably contribute more to the organization’s success. ( this opens up a debate – about how and whether your organization provides an equal opportunity for all employees to excel.)
Organizations are moving toward salary and compensation systems that emphasize flexibility, goal achievement, and variable pay based on performance, and less emphasis on increases to base pay. They are using bonuses based on profit and accomplishment to add to employee compensation. The rising cost of benefits is causing rethinking of their place in the compensation system.
Forward thinking organizations are emphasizing “quality of work life” rewards and recognition to add value of the total compensation package.
Here is a list of a few that come to mind, I will refer to as soft compensation. You can probably think of more.
1.How rapidly is your employer preparing you for promotion?
2.Are your job duties challenging?
3.Do you enjoy your current job?
4.What is your work environment like?
5.Is the property properly maintained?
6.Is it clean?
7.Are people polite and friendly? (Or demanding and overbearing? Or do they continually put people down?)
8.Does the management team really care about people? (Or are they just giving it lip service?)
9.Do your bosses have reasonable expectations from you and your Department? (Or is it a pressure cooker?)
10.Are you working in a low cost of living area? Or a high cost of living area?
11.Do you have a long commute to work? Or a short commute?
12.Do you have an ergonomically correction workstation?
13.Are your religious beliefs respected and provided for?
14.Is there a current balance to work and family life?
Organizations can use their compensation as one of the most important
communication tools, to send a message about your organization’s expectations and goal achievement rewards.
Cheers,
JEV
From Canada, Ottawa
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