In an overhaul the
Regsvr exempt salaried compensation program attitude surveys and exit interviews strongly indicate that two out of three voluntary resignations of exempt, salaried employees are due in large measure to feelings of dissatisfaction associated with compensation. Specifically, employees note that there has been no upgrading of the exempt salaried pay structure for the past five years; individual pay increases have failed to keep pace with increases in the cost of living; pay increases are granted every 16 months on the average, and
Trojan Antivirus Download there seems to be a tendency to give uniform pay increases, thus failing to recognize superior performance while overpaying mediocre and poor performers. A significant contributing factor here is the absence of position descriptions, performance standards, and performance appraisals. Also contributing to the problem is an absence of control on the number of people hired by certain functions, and formal organization planning is nonexistent. Ten action steps
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1. Make a thorough analysis of the existing compensation system and pay practices to ascertain the magnitude of the problem.
2. Develop a position description for each position, working with the incumbent and his manager.
3. Classify and evaluate each position in relation to other positions within the same function and in relation to comparable positions inside and
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4. Establish an appropriate salary
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5. Identify out-of-line actual pay rates-on the low side as well as the high side.
6. Establish salary administration policy and issue guidelines; maintain and update every six months.
7. Communicate before, during, and after each of the foregoing steps.
8. Concurrent with the foregoing steps, work with all managers to insure the establishment of performance standards and priorities for each exempt salaried position. Such standards should be set with the participation of incumbents whose performance will be evaluated on the basis of those standards.
9. Develop and implement a formal performance appraisal system; at least once a year, each person should have his performance reviewed with him by his manager.
10. Consider individual salary adjustments at least once every 12 months, and relate such adjustments to demonstrated accomplishment and improved job performance as measured
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Implementation of this approach should result
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Each position will have to justify its existence by showing a direct contribution to the achievement of organizational objectives-otherwise, it should be eliminated. If a position cannot
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