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Monthly Archives: January 2018

#HRWord:#Pay #Survey

A Pay survey or a Salary survey is typically conducted to gauge the organization’s compensation levels with respect to the external environment.  

Image courtesy: HR Daily Advisor


This helps in clearly defining the specific pay for each job.

Firstly a benchmark job is identified, the pay scale of the organization is positioned, and the relative worth of all the other jobs are established with respect to the benchmark job.

Pay surveys are usually conducted by a structured written Questionnaire. Telephonic surveys, Newspapers, Consultancy Firms, Pay check websites like NaukriPayCheck and Glassdoor.com can be sources of information as well.

Pay/Salary Surveys are analyses of compensation data. This data may include quantifyable aspects of compensation such as:

  1. Base salaries
  2. Increase percentages or amounts
  3. Merit Increases
  4. Salary Ranges
  5. Starting Salary
  6. Incentives/Bonuses
  7. Allowances and Benefits
  8. Working Hours

Salary Surveys may also include non-quantifyable aspects of compensation such as:

  1. Educational Requirements
  2. Geographic Location
  3. Source of Hire (Internal/External)
  4. Working Conditions                                           Below is the List of Global Pay Survey Vendors👇

https://hr-guide.com/data/043.htm

 
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Posted by on January 7, 2018 in HR Word of The Day

 

#HRWord:#Peer #Appraisal 📰💴

Peer appraisal is a form of 360 degree feedback and performance appraisal process.

Image courtesy : Slideshare

 Peers of an individual give feedback for the individual which gives an unique perspective to the work and goal achievement of an individual. While managers and other appraisal systems tend to provide a perspective on targets and goals achieved by an individual, peer appraisal tends to give an perspective on the interpersonal skills of an individual and his interaction base with the customer and team in which he is working.

Peer appraisal forms an integral part of performance appraisal system, peers, team mates, group members are anonymously asked to provide feedback about an individual’s performance.

 Generally the peer appraisal is shared with the manager of an individual, as a metric to evaluate performance. But sometimes these are shared with the individuals too, to give a feedback about their performance as measured in the team by team mates.

Peer appraisal has many advantages same as 360 degree feedback, in addition to which it also increases accuracy and fairness in the appraisal process.

Refer few Peer Appraisal Formats ,👇

https://goo.gl/images/FvSKz2

 
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Posted by on January 5, 2018 in HR Word of The Day

 

#HRWord:#Pay #Compression

Pay compression is the concept in an organization where the employees have more or less a similar salary irrespective of their age, experience, profile etc

Image courtesy: compensation Cafe


Even those employees who have a better skill set or have been with the company longer, have a slightly higher salary package.


The major problem of this phenomenon is increased turnover where the long term employees feel a sense of inequity and walk away from the organisation with all the knowledge and expertise they have acquired over a period of time.

In order to tackle this, most organisations follow the method of “equity” adjustments only for selected highly valued employees who are a victim of pay compression.

Pay Compression comes in many forms.  

At its very root, pay compression refers to a situation where pay isn’t differentiated enough (i.e.: compressed) where maybe it should be and for a very compelling reason.  When pay compression is present, you may find that your employee morale or engagement takes a dip, leading to a dip in performance and business results.  Their “sense of fairness” alarm may go off and rebuilding trust with employees at that point takes much more time and effort than getting it right the first time.

There are 3 common types of compression that deserve further examination within every organization.

  1. Am I hiring people in too close to or higher than existing employees in the same role?  Pay compression in this case refers to bringing in new talent at a rate that is near or even above (also called inversion) employees who have much more experience in the role and often much more tenure in the organization.  Sometimes you just have to have that newest brightest talent.  Unfortunately, that can sometimes come at the cost of paying competitively for your existing talent.

  2. Am I paying managers less than those they manage (unless that’s right for the role)?  Pay compression in this case refers to managers being paid at a rate lower than those that they supervise.  This may make sense in some technical roles where the market values the individual technical skills higher than management skills.  In most functional areas, however, it’s challenging to motivate a manager when they are being paid less than those they supervise.  As we move into an era where more millennials are entering management roles, this type of compression is especially troublesome.

  3. Am I paying multiple levels of a job essentially the same thing?  Do you have an Admin Assistant 1, Admin Asst 2, and Admin Asst 3?  If so, are there clear differences between each level of the job?  I’ve worked with many organizations that fail to differentiate the jobs, merely creating multiple levels so they can create a sense of mobility.  While it’s true that millennials, and in fact most other employees as well, like to be promoted, they also want to feel a substantive change to both the nature of the job and the compensation associated with it as well.

 
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Posted by on January 4, 2018 in HR Word of The Day

 
 
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