Compensation-Determining Pay Rates. Competency

Transcript:Compensation-Determining Pay Rates. Competency:
Compensation-Determining Pay Rates. Competency Based Pay Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 11–2 List the basic factors determining pay rates. Define and give an example of how to conduct a job evaluation. Explain in detail how to establish pay rates. Explain how to price managerial and professional jobs. Explain the difference between competency-based and traditional pay plan LEARNING OUTCOMES Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 11–3 Basic Factors in Determining Pay Rates Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 11–4 Legal Considerations in Compensation Employee Compensation Equal Pay Act (1963) Employee Retirement Income Security Act Age Discrimination in Employment Act Americans with Disabilities Act Davis-Bacon Act (1931) Walsh-Healey Public Contract Act (1936) Title VII of the 1964 Civil Rights Act Fair Labor Standards Act (1938) The Family and Medical Leave Act The Social Security Act of 1935 (as amended) National Labor Relations Act of 1935 (Wagner Act) Workers’ Compensation Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 11–5 FIGURE 11–2 Some Typical Exempt, Nonexempt Job Titles EXEMPT Attorneys Physicians Pharmacists Engineers Teachers Scientists Computer systems analysts General managers Personnel directors Accountants Purchasing agents NONEXEMPT Paralegals Accounting clerks Newspaper writers Working supervisor Management trainees Secretaries Clerical employees Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 11–6 Corporate Policies, Competitive Strategy, and Compensation Aligned Reward Strategy The employer’s basic task: To create a bundle of rewards—a total reward package—that specifically elicits the employee behaviors that the firm needs to support and achieve its competitive strategy. The HR or compensation manager along with top management creates pay policies that are consistent with the firm’s strategic aims. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 11–7 TABLE 11–1 Developing an Aligned Reward Strategy Questions to Ask: What must our company do, (for instance in terms of improving customer service), to be successful in fulfilling its mission or achieving its desired competitive position? What are the employee behaviors or actions necessary to successfully implement this competitive strategy? What compensation programs should we use to reinforce those behaviors? What should be the purpose of each program in reinforcing each desired behavior? What measurable requirements should each compensation program meet to be deemed successful in fulfilling its purpose? How well do our current compensation programs match these requirements? Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 11–8 Compensation