5 Essentials For A Compliant, Defensible & Effective Comp Program

TalentTakeaways
webinar & podcast series
5Essentials for a
Compliant, Defensible
and Effective
Compensation Program

AGENDAThe Series
Talent Takeaways | Compensation Compliance
TalentTakeaways
webinar & podcast series

AGENDAThe Sponsor

AGENDA
Brian Sharp
Chief Marketing Officer , HRsoft
Bruce Johanson
Principal Partner, DB Squared
Guest Presenter

What We Will Cover:
Essential Compensation Management components
Creating consistent & ADA compliant job descriptions
Benefits of using a point-factor rating system
Obtaining salary data to compare against
Integrating internal equity with external competitiveness

Essential Comp Management Components
PAQ – Position Analysis Questionnaire/Review Interviews

ADA Compliant Consistent Job Descriptions

Point-Factor Rating or some form of an Internal Validated Rating
System

Employee Data

Market Data
These essentials create an internally equitable & externally
competitive defensible base compensation management structure.

PAQ – Position Analysis or Assessment Questionnaire (1)
Hard copy can be 3 to 7 pages in length covering:
Position Basics – Title, Supervisor’s Title,
Department, Exempt/NE Classification, Date
Position Summary or Purpose Statement
Position Duties or Responsibilities
Experience, Education, and other Knowledge,
Skills and Abilities Requirements
Physical and Work Environment Aspects for
Position

ADA Compliant Job Descriptions (2)
Use data collected from PAQ
Consistent Format
Usually one to three pages in length
List of essential duties usually five to fifteen with the last one being an
automatic “Perform any other duties or tasks as assigned or
required.”
Description of experience, education, and other skill requirements
required and/or preferred
Description of the physical and work environment requirements to
meet the ADA guidelines
Descriptions should have a current date on
them and reviewed at least annually

Job Description Benefits & Drawbacks
Benefits
Provides a general understanding and
requirements of a position
Useful in the hiring (job posting &
interviewing) and orientation process
Basis to evaluate one position compared
to another in an department or across the
organization
Great tool to use with employees during
the annual performance planning and
evaluation process
Meets the requirements for ADA
Drawbacks
Time-consuming to create and maintain
and also tends to be outdated– not so with
automated job description writer

Point-Factor Rating System (3)
Has been around since the 40’s
The Hay Group – best known for creating it
and using it with its client base from 40’s on
During 70’s and most of the 80’s – point factor system was not
regularly used, just outside market salary averages
Market salary averages alone can be misleading and go up and
down annually and recent pressure from the OFFCP to conduct
multi-factor analysis has caused organizations to return to the
point-factor rating and other factor analyzes

Point-Factor Rating System
Who has them?
Hay Group – 9 factors
Hewitt & Associates – 11
Department of Labor – 9
Johanson Group – 15 – copyrighted
system created in 1985
Others – Some companies have
created their own

Point-Factor Rating System
Components include such factors as:
Experience
Education
Problem-Solving
Supervision
Communication
Machine Operations
Physical Demands

Internal Employee Data (4)
Usually kept on a HRIS or payroll system & at a minimum you need:
Employee Names
Employee Salaries
Position Titles
Job Rating Points
Other essential data that is useful:
Employee ID #
Position Title #
Gender, Ethnic Background Classifications
Date of Birth
Employment Date
Physical Location

Outside Salary Data (5)
Where do you collect salary data?
Local HR/Comp Associations
Local Chamber
Trade/Industry Associations
Competitors (need to obtain 5 to 6 or
more)
Published or electronic data
(Watson/Wyatt, Hewitt, DOL, Compdata,
SalarySource.com, etc.)

Creating Internal Equity & External Competitiveness
Using Regression Analysis you can use the variables of
rating points and pay to see how your organization is
doing internally.
Using Regression Analysis with the external salary data and
same position rating points, you can see how the
organization is doing externally.
Once you have determined where the organization is to
market, you can create salary ranges/grades for each
positions and then assess where each employee fits within
the salary ranges.

EEO Related Employee Pay Lawsuits Are Increasing & Very Costly
The frequency &
amount of judgment
awards are
increasing over pay
& protected classes.

Meeting the Voluntary OFCCP Guidelines on Comparable Worth
Federal Contractors with 50 employees and $50,000 in annual federal
funds are required to maintain some form of an AA plan. In the last
couple of years, the OFCCP has passed voluntary guidelines on
comparable worth and steps to determine if your organization is
meeting these guidelines.

Meeting the Voluntary OFCCP Guidelines on Comparable Worth
These guidelines include completing several multi-factor analysis
including job rating points, gender, ethnic background, time in
job, promotions, etc. to determine if there are any discriminatory
pay practices.
We believe that these voluntary guidelines will become
mandatory in a few years.

DBCompensation™ Software
Web-based Job Description Writer –
creates a Word based FLSA compliant job
description in 15 to 20 minutes
Web-based Job Rating System – seeks to
reach consensus on job ratings
automatically with a job rating
committee
Automatically creates your regressions
lines for the internal employee equity
review and external market pay lines
compared to your organization’s pay line

DBCompensation™ Software (Continued)
Creates a schedule to determine where each employee fits in
their salary range and provides a summary review for the whole
organization for easy decisions with salary adjustments/budgets
All schedules can be exported to Excel and graphs to PDF’s
Importing feature to take data from your HRIS or payroll system
into the DBCompensation software saving a significant amount
of time

Questions?
Thank you for allowing us to present to your
group today and hope the rest of 2015 is great
for each of you. If we can help you with your
Compensation/HR needs, please email me at:
bruce.johanson@dbsquared.com

COMPview™
High Impact Compensation Planning Software
HRsoft.com

 answer questions
 share resources
 offer solutions
Strategy Session
Resources & Support

5 Essentials For A Compliant, Defensible & Effective Comp Program

Recomendados

Recomendados

Mais conteúdo relacionado

Mais procurados

Mais procurados (20)

Destaque

Destaque (12)

Semelhante a 5 Essentials For A Compliant, Defensible & Effective Comp Program

Semelhante a 5 Essentials For A Compliant, Defensible & Effective Comp Program (20)

Mais de HRsoft - Talent Management Software

Mais de HRsoft - Talent Management Software (20)

Último

Último (11)

5 Essentials For A Compliant, Defensible & Effective Comp Program

Notas do Editor