Dear HR Professionals,
Hope all of you are fine enough and doing great on your HR job!!! :D
Today once again I'm looking for support from you. :roll:
:?: :?: My queries are: :?: :?:
:arrow: 1. What is compensation analysis?
:arrow: 2. What are the core works for a HR executive working with Compensation & Benefits?
:arrow: 3. How can an HR Executive work with compensation & Benefits of an financial organization?
:arrow: 4. Short job description of an Executive working with Compensation & Benefits Department of HR Division.
Please reply positively and take my hearties thanks in advance.
Regards,
From Malaysia, Ipoh
1Hope all of you are fine enough and doing great on your HR job!!! :D
Today once again I'm looking for support from you. :roll:
:?: :?: My queries are: :?: :?:
:arrow: 1. What is compensation analysis?
:arrow: 2. What are the core works for a HR executive working with Compensation & Benefits?
:arrow: 3. How can an HR Executive work with compensation & Benefits of an financial organization?
:arrow: 4. Short job description of an Executive working with Compensation & Benefits Department of HR Division.
Please reply positively and take my hearties thanks in advance.
Regards,
From Malaysia, Ipoh
1.WHAT IS COMPENSATION ANALYSIS?
COMPENSATION FACTORS
COMPENSATION management is about a range of interconnected
processes that aim through both financial and non-financial means
to address what employees value in the employment relationship.
It is not just a set of techniques.
Factors affecting Compensation in an organization are
-Corporate business strategy
-Corporate HRM strategy
-Demand and Supply of human talent
-Organization values
-Market Rates
-Industry Trends
-Performance Related
-Flexibility / responding to changes.
-Motivation oriented
-Work related
-Productivity based
-Budget factor
-Competence based
-Contribution factor
-Organization grade structure
-Job evaluation [ relative size of jobs ]
-Non financial benefits
-Employee benefits.
-Internal job value.
-External job value.
-Perceived value of an employee at a given time.
-Affordability.
-Trade Union factor.
etc.
Any combination of factors would be applicable in a given
period of time.
================================================== ===
Compensation Analysis and Benchmarking
Understanding your organization’s competitive pay position relative to the marketplace is
critical to attracting, retaining, and motivating your workforce. However, organizations do
not always have the time or human resources to evaluate their jobs against market data.
With an external agency can provide you with a complete evaluation of your organization’s
compensation and pay practices relative to the marketplace by geographic location, job
function, and industry. With a thorough understanding of your competitive position, you will
be able to better align your organization’s pay practices with business strategy.
Benefits
• Evaluate the effectiveness of your compensation philosophy relative to both the
market and your business strategy
• Understand at a detail level, your organization’s base and total cash compensation
position relative to the marketplace by individual and by job.
• Identify any important issues relative to the design and mix of compensation elements
to ensure the most effective alignment with business strategy
• Obtain objective and unbiased compensation analysis, uncontaminated by internal
political influence
• Develop appropriate salary ranges and salary structures, that enable your organization
to attract, retain, and motivate high performing employees
Methodology
USE a five-step methodology to evaluate your company’s compensation against
the marketplace.
1) Organization and Job Analysis
First, conduct a review to fully understand your strategy, organizational structure and
compensation philosophy in order to put market pricing in an appropriate context. Next,
apply job analysis techniques to understand the roles and work being performed and the
relative ranking of jobs. In the analysis, review existing job documentation as well as
collect data using a proprietary job analysis questionnaire, where needed.
Organization &Job Analysis
Job Matching & Weighting
Analysis Reporting Recommendations
2) Job Matching & Weighting
Job Matching ensures the appropriate alignment of your internal job structures with
marketplace benchmarks. Select and review appropriate
compensation survey sources. As part of the process, import your organization’s
employee data, as well as corresponding survey data, into a
compensation job matching database. Within that database, match your jobs to survey
jobs, based on results of the job analysis and close review of each survey source. Weight
each selected survey job based on its proximity to your company’s job
3) Analysis
Using compensation database system, calculate a market consensus for each of your
jobs, using any weighting applied to each survey match. then calculate your competitive
position relative to the market pay position in terms of percent above or below the market.
This analysis can be calculated several ways including by: individual, job, grade, and
functional area.
4) Reporting
generate reports . Some of our reports include:
• Individual employee’s pay versus the market consensus
• Compensation by job versus market consensus
• Compensation by grade versus market consensus
• Functional analysis of compensation
5) Recommendations
Based on your organization’s current market position, develop recommendations to help
you better align pay practice with your compensation philosophy and business objectives.
================================================== ===================
Why Analyze Compensation Data?
*Awareness, to identify the elements that actually influence salary, wages and other types of compensation
Fairness, to determine if the elements are uniformly applied; and, if so what the impact is on minorities and women
"An ounce of prevention is worth a pound of cure"
BASIC DATA REQUIREMENTS
Data elements that are identified as affecting compensation
Current data for each of the identified elements
The first step in conducting a compensation self-assessment is to determine what factors are used to establish compensation levels for each job within the company. These factors vary from company to company and from industry to industry. Typically. many companies include such factors as
length of time at the company or in the position or both
grade or pay level
research on the market value of the position
performance evaluation ratings
educational degrees or certifications required
related experience in previous employment
Many times factors to be identified at this step of the process are included in various procedural manuals that also include criteria for entry in various levels, definitions of terms used, and ranges for bonus payments or salary increases at given grade levels.
THREE TOOLS FOR COMPENSATION ANALYSIS
MEDIAN APPROACH
AVERAGE APPROACH
TABLE AND SORT FEATURES
The three approaches that are described are ones that are currently used .
The median approach is one that is easy to use and provides much useful information; however, more sophisticated statistical tests do not usually use the median for comparisons.
The average approach permits the comparison of averages and also extension to statistical tests.
The discussion of tables and sorts using a personal computer describes the easiest and simplest set of analyses.
The examples that follow all concentrate on salary analysis. A person's salary may represent only one part of his or her total compensation and it may be necessary to analyze other elements such as commissions or bonuses. In addition to analyzing salary, it may be necessary to analyze other factors, such as experience or time on the job, in order to explain differences in the salary between groups of similarly situated employees.
MEDIAN COMPENSATION ANALYSIS
The median is one way to describe the mid point of the group of salaries being analyzed. It is the salary figure that is larger than or equal to half of the other salaries and equal to or smaller than half of the other salaries. In identifying the median, it is easiest if the items are arranged in ascending or descending order. For example, in the following group of salaries
$32,988
$19,552
$19,344
$18,304
$18,264
the median is $19,334, since $19,334 is the number at the middle of the distribution. If there were an even number of salaries in the distribution, the median is computed by computing the average of the middle two salaries. For example, if the group of salaries was
$35,704
$33,255
$33,022
$31,900
$29,786
$28,659
the median would be $32,465, which is the average of $33,022 and $31,900, which are the middle two salaries./P>
The median is useful for analysis because it is not affected by very high or very low salaries in the distribution. In many cases, it is a more revealing measure than the average, which is described next. It is usually more revealing when the data being analyzed contains a relatively small number of salaries with values at one extreme, either very high or very low.
In conducting a compensation analysis, the median value for example, for men and for women is calculated and compared for each element affecting compensation. The medians are then compared, both individually by element and for combinations of elements, such as length of service and pay, or performance ratings and pay. In making these comparisons between elements, one might ask:
Does the group with higher median pay also have longer median periods of service?
Does the group with higher median pay also have higher median performance evaluation ratings?
Are there other business factors that explain the higher median pay of a group?
The size of the difference should also be taken into consideration. For example, does only a few months difference in seniority warrant several thousand dollars difference in compensation? Or, are the differences in compensation slight, less than $100 a year so that they might easily be explained by other factors not included in the analysis.
The following table provides an example of how a median analysis might be presented for those salary grades where important differences were found. The columns show the salary grade, the median salary for the grade, the median years in the grade and a comparison of the male to female differences.
GRADE FEMALE
SALARY YRS IN
GRADE MALE
SALARY YRS IN
GRADE FEMALE
SAL DIFF FEMALE-YRS IN
GRADE DIFF
14 $76,699 1.7 $84,346 2.5 -$7,647 -0.8
10 $49,115 1.6 $49,382 2.3 -$267 -0.7
6 $31,074 3.2 $27,900 2.8 $3,174 0.4
In analyzing this chart:
It is assumed that time-in-grade is more significant than company seniority in determining current salary.
In grade 14, further investigation seems indicated since the median annual salary for females is several thousand dollars less than the median annual salary of males and females have less than a one year difference in median time-in grade.
In grade 10, further investigation does not seem indicated since there is only a small difference in the median annual salary of females compared to that of males and the median years in grade for females is less than the median years in grade for males.
In grade 6, further investigation seems indicated since the median annual salary of males is less than the median annual salary of females, but there is less than one year difference in median time in grade between the two groups.
Thus, further investigation of the salaries in Grades 14 and 6 seems indicated and, if all other factors are equal and the differences in salary still exist, it is possible that upward adjustment to the compensation of certain individuals is needed.
AVERAGE COMPENSATION ANALYSIS
The average or arithmetic mean is another way of describing the mid point of a group of salaries being analyzed. The average is computed by adding the salaries in a distribution of salaries being analyzed, and then dividing their sum by the number of salaries. The average is useful for comparing the sizes of the terms in two groups, for example comparing the average salary of men to the average salary of women. One can then ask questions such as the ones suggested below:
Is the average salary roughly the same for each group or is one much larger than the other?
Does the group with the higher average salary also have longer average periods of service?
Does the group with the higher average salary also have higher average performance ratings?
Are there other business factors that explain the higher average pay of the group?
For each element affecting compensation, the average for men and for women is calculated and compared. These should be done for each salary level, grade level, time in position, etc. For example, in the table below, the male average salary is shown in the second column, the third column shows the difference between the male average salarv for each grade level and the female average salary. The fourth column shows the difference in the average seniority of females compared to malcs and the fifth column shows the average difference in performance evaluation scores.
GRADE MALE
AVER.
SALARY FEMALE
AVER.
COMPARED FEMALE
AVER.
SENORITY FEMALE
PERF.
EVALUATION
9 $46,176.00 -$3,224.00 -3.0 -1
8 $37,752.00 $44.30 0.0 0
6 $33,809.00 $2,080.00 7.0 +1
In analyzing the above table, one might make the following observations:
Although there is a large difference in the average female salary in grade 9, females also have fewer years of seniority and lower performance evaluations, which may explain the differences in salary.
The average difference between male and female salaries in grade 8 is very small and there are no differences in the average seniority or performance evaluations. This difference seems small enough so that no further investigation is warranted.
Although there is a relatively large difference in the average female salary in grade 6, females have many more years of seniority and higher performance evaluations, which may explain the differences in salary.
"TABLE" AND "SORT" FEATURES ON THE PC
Spreadsheet software includes a variety of procedures that can be used to analyze and present data. The sorting features found in a spreadsheet can be used to give a quick overview of the workforce arrayed by various dimensions. For example, just a few of the ways that the sort feature may be used, include:
sorting by salary identifies the highest paid minority group member or woman and the level at which there is no further representation of either group
sorting by hire date gives an indication of whether particular group members are new hires or have long tenure
sorting by current job date can be used in an initial assessment of length of time since last promotion
sorting by previous job title can identify feeder groups
sorting by department or other organizational unit can indicate concentrations or absences of members of a particular demographic group
Software that includes a subtotal function can be used to give counts, for example to count the number of individuals with an identical job title. It may also provide the maximum and minimum values of a field. The pivot table and filter functions are also useful adjuncts for these types of analyses, since they isolate fields of interest, which can then be examined apart from the entire data spreadsheet. The sorting features are particularly useful in giving an overall picture of the composition of the workforce as arrayed using different criteria.
Charts and graphs are another useful way to present data.
SUMMARY
Wage differentials are not discriminatory or unlawful when based on neutral job related factors.
Analysis of compensation data is a useful tool to assure fairness in compensation practices.
The analysis of compensation data may identify problems that can be corrected without being the subject of a complaint, compliance review finding or litigation.
In its initial phases, the analysis of a compensation system may be done simply without "expert" or outside assistance.
================================================== =============
================================================== =============
2. What are the core works for a HR executive working with Compensation & Benefits?
A MACRO UNDERSTANDING OF THE JOB POSITION
Establishing and maintaining a firm’s pay system is the principal job of the COMPENSATION /BENEFITS MANAGER.
Assisted by staff specialists, compensation managers devise ways to ensure fair and equitable pay rates. They may conduct surveys to see how their firm’s rates compare with others and to see that the firm’s pay scale complies with changing laws and regulations. In addition, compensation managers often manage their firm’s performance evaluation system, and they may design reward systems such as pay-for-performance plans.
MANAGE the company’s employee benefits program, notably its health insurance and pension plans. Expertise in designing and administering benefits programs continues to take on importance as employer-provided benefits account for a growing proportion of overall compensation costs, and as benefit plans increase in number and complexity. For example, pension benefits might include savings and thrift, profit-sharing, and stock ownership plans; health benefits might include long-term catastrophic illness insurance and dental insurance. Familiarity with health benefits is a top priority for employee benefits managers and specialists, as more firms struggle to cope with the rising cost of health care for employees and retirees. In addition to health insurance and pension coverage, some firms offer employees life and accidental death and dismemberment insurance, disability insurance, and relatively new benefits designed to meet the needs of a changing workforce, such as parental leave, child and elder care, long-term nursing home care insurance, employee assistance and wellness programs, and flexible benefits plans. Benefits managers must keep abreast of changing CENTRAL and State regulations and legislation that may affect employee benefits.
================================================== ================
3. How can an HR Executive work with compensation & Benefits of an financial organization?
THERE IS NO SIGNIFICANT DIFFERENCE TO THE WORKING
OF ANY OTHER ORGANIZATUION.
================================================== ===============
4. Short job description of an Executive working with Compensation & Benefits Department of HR Division.
Job Description Compensation & Benefits Manager
Designs, plans, and implements corporate benefits and compensation programs, policies, and procedures. Responsible for reviewing programs, suggesting modifications, and ensuring achievement of competitive market position and other goals identified by the organization. Responsible for ensuring programs meet employees needs, comply with legal requirements, and are cost effective. Ensures the compensation and benefits programs enhance the organization's ability to recruit and retain employees. Generally manages a group of compensation and/or benefits analysts. Relies on experience and judgment to plan and accomplish goals. Typically reports to an executive.
Compensation and Benefits Managers ensure that benefit programs satisfy the needs of employees and all applicable governmental regulations. Compensation Specialists prepare detailed job descriptions and classification systems and develop fair and competitive pay structures. Benefits Specialists handle employee insurance, pension and savings plan administration and frequently serve as liaisons between insurance brokers and carriers. They must be aware of all related government rules and regulations, and fulfill all reporting requirements.
A compensation and benefits manager has responsibility for developing and implementing the organisation's rewards and benefit policies. This will include salaries and bonuses plus employee benefits, such as pensions. Life assurance, profit-sharing, company cars and medical insurance packages may also be an area of responsibility, as can arranging relocation and expatriate packages. The terminology used to describe this area of work can vary; job titles may also include compensation and rewards manager and remuneration manager.
Within very large organisations there may be specialist managers who deal with only one aspect of compensation and benefits work, such as the company pension scheme, payroll or the salary structure. For those staff working across all areas of this specialism, typical duties include:
monitoring the organisation's salary structure and benefits provision to ensure a balance between control of costs and attracting and retaining staff;
researching and analysing salary rates and benefits offered by other employers in the same sector;
undertaking job evaluations to ensure that the differences in pay between those doing different jobs within the organisation are fair and are perceived to be so;
making recommendations on changes to pension and insurance schemes;
developing and implementing new benefit packages;
negotiating with union representatives on issues relating to pay and benefits;
managing the payroll system;
developing and maintaining personnel record systems in accordance with current legislation.
REGARDS
LEO LINGHAM
From India, Mumbai
COMPENSATION FACTORS
COMPENSATION management is about a range of interconnected
processes that aim through both financial and non-financial means
to address what employees value in the employment relationship.
It is not just a set of techniques.
Factors affecting Compensation in an organization are
-Corporate business strategy
-Corporate HRM strategy
-Demand and Supply of human talent
-Organization values
-Market Rates
-Industry Trends
-Performance Related
-Flexibility / responding to changes.
-Motivation oriented
-Work related
-Productivity based
-Budget factor
-Competence based
-Contribution factor
-Organization grade structure
-Job evaluation [ relative size of jobs ]
-Non financial benefits
-Employee benefits.
-Internal job value.
-External job value.
-Perceived value of an employee at a given time.
-Affordability.
-Trade Union factor.
etc.
Any combination of factors would be applicable in a given
period of time.
================================================== ===
Compensation Analysis and Benchmarking
Understanding your organization’s competitive pay position relative to the marketplace is
critical to attracting, retaining, and motivating your workforce. However, organizations do
not always have the time or human resources to evaluate their jobs against market data.
With an external agency can provide you with a complete evaluation of your organization’s
compensation and pay practices relative to the marketplace by geographic location, job
function, and industry. With a thorough understanding of your competitive position, you will
be able to better align your organization’s pay practices with business strategy.
Benefits
• Evaluate the effectiveness of your compensation philosophy relative to both the
market and your business strategy
• Understand at a detail level, your organization’s base and total cash compensation
position relative to the marketplace by individual and by job.
• Identify any important issues relative to the design and mix of compensation elements
to ensure the most effective alignment with business strategy
• Obtain objective and unbiased compensation analysis, uncontaminated by internal
political influence
• Develop appropriate salary ranges and salary structures, that enable your organization
to attract, retain, and motivate high performing employees
Methodology
USE a five-step methodology to evaluate your company’s compensation against
the marketplace.
1) Organization and Job Analysis
First, conduct a review to fully understand your strategy, organizational structure and
compensation philosophy in order to put market pricing in an appropriate context. Next,
apply job analysis techniques to understand the roles and work being performed and the
relative ranking of jobs. In the analysis, review existing job documentation as well as
collect data using a proprietary job analysis questionnaire, where needed.
Organization &Job Analysis
Job Matching & Weighting
Analysis Reporting Recommendations
2) Job Matching & Weighting
Job Matching ensures the appropriate alignment of your internal job structures with
marketplace benchmarks. Select and review appropriate
compensation survey sources. As part of the process, import your organization’s
employee data, as well as corresponding survey data, into a
compensation job matching database. Within that database, match your jobs to survey
jobs, based on results of the job analysis and close review of each survey source. Weight
each selected survey job based on its proximity to your company’s job
3) Analysis
Using compensation database system, calculate a market consensus for each of your
jobs, using any weighting applied to each survey match. then calculate your competitive
position relative to the market pay position in terms of percent above or below the market.
This analysis can be calculated several ways including by: individual, job, grade, and
functional area.
4) Reporting
generate reports . Some of our reports include:
• Individual employee’s pay versus the market consensus
• Compensation by job versus market consensus
• Compensation by grade versus market consensus
• Functional analysis of compensation
5) Recommendations
Based on your organization’s current market position, develop recommendations to help
you better align pay practice with your compensation philosophy and business objectives.
================================================== ===================
Why Analyze Compensation Data?
*Awareness, to identify the elements that actually influence salary, wages and other types of compensation
Fairness, to determine if the elements are uniformly applied; and, if so what the impact is on minorities and women
"An ounce of prevention is worth a pound of cure"
BASIC DATA REQUIREMENTS
Data elements that are identified as affecting compensation
Current data for each of the identified elements
The first step in conducting a compensation self-assessment is to determine what factors are used to establish compensation levels for each job within the company. These factors vary from company to company and from industry to industry. Typically. many companies include such factors as
length of time at the company or in the position or both
grade or pay level
research on the market value of the position
performance evaluation ratings
educational degrees or certifications required
related experience in previous employment
Many times factors to be identified at this step of the process are included in various procedural manuals that also include criteria for entry in various levels, definitions of terms used, and ranges for bonus payments or salary increases at given grade levels.
THREE TOOLS FOR COMPENSATION ANALYSIS
MEDIAN APPROACH
AVERAGE APPROACH
TABLE AND SORT FEATURES
The three approaches that are described are ones that are currently used .
The median approach is one that is easy to use and provides much useful information; however, more sophisticated statistical tests do not usually use the median for comparisons.
The average approach permits the comparison of averages and also extension to statistical tests.
The discussion of tables and sorts using a personal computer describes the easiest and simplest set of analyses.
The examples that follow all concentrate on salary analysis. A person's salary may represent only one part of his or her total compensation and it may be necessary to analyze other elements such as commissions or bonuses. In addition to analyzing salary, it may be necessary to analyze other factors, such as experience or time on the job, in order to explain differences in the salary between groups of similarly situated employees.
MEDIAN COMPENSATION ANALYSIS
The median is one way to describe the mid point of the group of salaries being analyzed. It is the salary figure that is larger than or equal to half of the other salaries and equal to or smaller than half of the other salaries. In identifying the median, it is easiest if the items are arranged in ascending or descending order. For example, in the following group of salaries
$32,988
$19,552
$19,344
$18,304
$18,264
the median is $19,334, since $19,334 is the number at the middle of the distribution. If there were an even number of salaries in the distribution, the median is computed by computing the average of the middle two salaries. For example, if the group of salaries was
$35,704
$33,255
$33,022
$31,900
$29,786
$28,659
the median would be $32,465, which is the average of $33,022 and $31,900, which are the middle two salaries./P>
The median is useful for analysis because it is not affected by very high or very low salaries in the distribution. In many cases, it is a more revealing measure than the average, which is described next. It is usually more revealing when the data being analyzed contains a relatively small number of salaries with values at one extreme, either very high or very low.
In conducting a compensation analysis, the median value for example, for men and for women is calculated and compared for each element affecting compensation. The medians are then compared, both individually by element and for combinations of elements, such as length of service and pay, or performance ratings and pay. In making these comparisons between elements, one might ask:
Does the group with higher median pay also have longer median periods of service?
Does the group with higher median pay also have higher median performance evaluation ratings?
Are there other business factors that explain the higher median pay of a group?
The size of the difference should also be taken into consideration. For example, does only a few months difference in seniority warrant several thousand dollars difference in compensation? Or, are the differences in compensation slight, less than $100 a year so that they might easily be explained by other factors not included in the analysis.
The following table provides an example of how a median analysis might be presented for those salary grades where important differences were found. The columns show the salary grade, the median salary for the grade, the median years in the grade and a comparison of the male to female differences.
GRADE FEMALE
SALARY YRS IN
GRADE MALE
SALARY YRS IN
GRADE FEMALE
SAL DIFF FEMALE-YRS IN
GRADE DIFF
14 $76,699 1.7 $84,346 2.5 -$7,647 -0.8
10 $49,115 1.6 $49,382 2.3 -$267 -0.7
6 $31,074 3.2 $27,900 2.8 $3,174 0.4
In analyzing this chart:
It is assumed that time-in-grade is more significant than company seniority in determining current salary.
In grade 14, further investigation seems indicated since the median annual salary for females is several thousand dollars less than the median annual salary of males and females have less than a one year difference in median time-in grade.
In grade 10, further investigation does not seem indicated since there is only a small difference in the median annual salary of females compared to that of males and the median years in grade for females is less than the median years in grade for males.
In grade 6, further investigation seems indicated since the median annual salary of males is less than the median annual salary of females, but there is less than one year difference in median time in grade between the two groups.
Thus, further investigation of the salaries in Grades 14 and 6 seems indicated and, if all other factors are equal and the differences in salary still exist, it is possible that upward adjustment to the compensation of certain individuals is needed.
AVERAGE COMPENSATION ANALYSIS
The average or arithmetic mean is another way of describing the mid point of a group of salaries being analyzed. The average is computed by adding the salaries in a distribution of salaries being analyzed, and then dividing their sum by the number of salaries. The average is useful for comparing the sizes of the terms in two groups, for example comparing the average salary of men to the average salary of women. One can then ask questions such as the ones suggested below:
Is the average salary roughly the same for each group or is one much larger than the other?
Does the group with the higher average salary also have longer average periods of service?
Does the group with the higher average salary also have higher average performance ratings?
Are there other business factors that explain the higher average pay of the group?
For each element affecting compensation, the average for men and for women is calculated and compared. These should be done for each salary level, grade level, time in position, etc. For example, in the table below, the male average salary is shown in the second column, the third column shows the difference between the male average salarv for each grade level and the female average salary. The fourth column shows the difference in the average seniority of females compared to malcs and the fifth column shows the average difference in performance evaluation scores.
GRADE MALE
AVER.
SALARY FEMALE
AVER.
COMPARED FEMALE
AVER.
SENORITY FEMALE
PERF.
EVALUATION
9 $46,176.00 -$3,224.00 -3.0 -1
8 $37,752.00 $44.30 0.0 0
6 $33,809.00 $2,080.00 7.0 +1
In analyzing the above table, one might make the following observations:
Although there is a large difference in the average female salary in grade 9, females also have fewer years of seniority and lower performance evaluations, which may explain the differences in salary.
The average difference between male and female salaries in grade 8 is very small and there are no differences in the average seniority or performance evaluations. This difference seems small enough so that no further investigation is warranted.
Although there is a relatively large difference in the average female salary in grade 6, females have many more years of seniority and higher performance evaluations, which may explain the differences in salary.
"TABLE" AND "SORT" FEATURES ON THE PC
Spreadsheet software includes a variety of procedures that can be used to analyze and present data. The sorting features found in a spreadsheet can be used to give a quick overview of the workforce arrayed by various dimensions. For example, just a few of the ways that the sort feature may be used, include:
sorting by salary identifies the highest paid minority group member or woman and the level at which there is no further representation of either group
sorting by hire date gives an indication of whether particular group members are new hires or have long tenure
sorting by current job date can be used in an initial assessment of length of time since last promotion
sorting by previous job title can identify feeder groups
sorting by department or other organizational unit can indicate concentrations or absences of members of a particular demographic group
Software that includes a subtotal function can be used to give counts, for example to count the number of individuals with an identical job title. It may also provide the maximum and minimum values of a field. The pivot table and filter functions are also useful adjuncts for these types of analyses, since they isolate fields of interest, which can then be examined apart from the entire data spreadsheet. The sorting features are particularly useful in giving an overall picture of the composition of the workforce as arrayed using different criteria.
Charts and graphs are another useful way to present data.
SUMMARY
Wage differentials are not discriminatory or unlawful when based on neutral job related factors.
Analysis of compensation data is a useful tool to assure fairness in compensation practices.
The analysis of compensation data may identify problems that can be corrected without being the subject of a complaint, compliance review finding or litigation.
In its initial phases, the analysis of a compensation system may be done simply without "expert" or outside assistance.
================================================== =============
================================================== =============
2. What are the core works for a HR executive working with Compensation & Benefits?
A MACRO UNDERSTANDING OF THE JOB POSITION
Establishing and maintaining a firm’s pay system is the principal job of the COMPENSATION /BENEFITS MANAGER.
Assisted by staff specialists, compensation managers devise ways to ensure fair and equitable pay rates. They may conduct surveys to see how their firm’s rates compare with others and to see that the firm’s pay scale complies with changing laws and regulations. In addition, compensation managers often manage their firm’s performance evaluation system, and they may design reward systems such as pay-for-performance plans.
MANAGE the company’s employee benefits program, notably its health insurance and pension plans. Expertise in designing and administering benefits programs continues to take on importance as employer-provided benefits account for a growing proportion of overall compensation costs, and as benefit plans increase in number and complexity. For example, pension benefits might include savings and thrift, profit-sharing, and stock ownership plans; health benefits might include long-term catastrophic illness insurance and dental insurance. Familiarity with health benefits is a top priority for employee benefits managers and specialists, as more firms struggle to cope with the rising cost of health care for employees and retirees. In addition to health insurance and pension coverage, some firms offer employees life and accidental death and dismemberment insurance, disability insurance, and relatively new benefits designed to meet the needs of a changing workforce, such as parental leave, child and elder care, long-term nursing home care insurance, employee assistance and wellness programs, and flexible benefits plans. Benefits managers must keep abreast of changing CENTRAL and State regulations and legislation that may affect employee benefits.
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3. How can an HR Executive work with compensation & Benefits of an financial organization?
THERE IS NO SIGNIFICANT DIFFERENCE TO THE WORKING
OF ANY OTHER ORGANIZATUION.
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4. Short job description of an Executive working with Compensation & Benefits Department of HR Division.
Job Description Compensation & Benefits Manager
Designs, plans, and implements corporate benefits and compensation programs, policies, and procedures. Responsible for reviewing programs, suggesting modifications, and ensuring achievement of competitive market position and other goals identified by the organization. Responsible for ensuring programs meet employees needs, comply with legal requirements, and are cost effective. Ensures the compensation and benefits programs enhance the organization's ability to recruit and retain employees. Generally manages a group of compensation and/or benefits analysts. Relies on experience and judgment to plan and accomplish goals. Typically reports to an executive.
Compensation and Benefits Managers ensure that benefit programs satisfy the needs of employees and all applicable governmental regulations. Compensation Specialists prepare detailed job descriptions and classification systems and develop fair and competitive pay structures. Benefits Specialists handle employee insurance, pension and savings plan administration and frequently serve as liaisons between insurance brokers and carriers. They must be aware of all related government rules and regulations, and fulfill all reporting requirements.
A compensation and benefits manager has responsibility for developing and implementing the organisation's rewards and benefit policies. This will include salaries and bonuses plus employee benefits, such as pensions. Life assurance, profit-sharing, company cars and medical insurance packages may also be an area of responsibility, as can arranging relocation and expatriate packages. The terminology used to describe this area of work can vary; job titles may also include compensation and rewards manager and remuneration manager.
Within very large organisations there may be specialist managers who deal with only one aspect of compensation and benefits work, such as the company pension scheme, payroll or the salary structure. For those staff working across all areas of this specialism, typical duties include:
monitoring the organisation's salary structure and benefits provision to ensure a balance between control of costs and attracting and retaining staff;
researching and analysing salary rates and benefits offered by other employers in the same sector;
undertaking job evaluations to ensure that the differences in pay between those doing different jobs within the organisation are fair and are perceived to be so;
making recommendations on changes to pension and insurance schemes;
developing and implementing new benefit packages;
negotiating with union representatives on issues relating to pay and benefits;
managing the payroll system;
developing and maintaining personnel record systems in accordance with current legislation.
REGARDS
LEO LINGHAM
From India, Mumbai
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