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#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

 

#HRWord:#Ageism

Ageism (also spelled “agism“) is stereotyping of and discrimination against individuals or groups on the basis of their age. 


This may be casual or systematic. The term was coined in 1969 by Robert Neil Butler to describe discrimination against seniors, and patterned on sexism and racism. 

Butler defined “ageism” as a combination of three connected elements. Among them were prejudicial attitudes towards older people, old age, and the aging process

Age discrimination in employment can include:

  • advertising for someone to join a ‘dynamic, young team’

  • not interviewing someone because they are too young or too old to ‘fit in’ with other staff

  • not employing younger workers because it’s assumed that they’ll quickly move on to another job

  • not employing mature workers because it’s assumed that they’ll soon retire

  • not providing training opportunities for young or mature workers because ‘it’s not worth it’

  • making choices around redundancy, or forcing someone to retire, because of their age

Employer Duty to avoid Ageism

An employer has a duty to take reasonable measures to prevent discrimination from happening, rather than just respond to complaints that arise. This is called a ‘positive duty’. It means that an employer needs to take proactive steps to eliminate discrimination.  For example this could mean scanning their environment and considering if recruitment and employment policies and processes unreasonably bar people of certain age groups from being employed or continuing to work. An employer should put in place changes required to address this.

Source Forbes & Wiki

 
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Posted by on December 23, 2017 in HR Word of The Day, Uncategorized

 

#HRWord:#Pay Dispersion

Pay dispersion is a concept where employers pay different amount of wages or salaries to their employees for the same skills and the same type of work

Image credit: prosperio

Pay dispersion exists because of limited knowledge of employees about the wages of the other employees, and also because of employee experience, changing policies etc.

Pay dispersion takes into account several factors for determining the operationalization. They are like benchmarked pay levels, coefficient of variation, Gini Coefficient, etc.

Aspects:

1. Higher pay brings out better productivity, & the employees also puts in more effort

2. Differential inputs & marginal products, represents internal career & wage path that raise motivational levels & has effect upon the attitudes.

3. Greater pay dispersion generally is positively correlated with turnover, as and when the vertical pay dispersion is examined.

4. Organizations focusing on expectation enhancing are rather more successful than those focusing on pay dispersion.

 
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Posted by on December 20, 2017 in HR Word of The Day

 

#HR #Word:#OMD (#Outdoor #Management #Development)

Outdoor Management Development is a process of imparting learning and development for managerial cadre outside the four walls of an organizational setup

Image courtesy: Hula Hoppo


The objective of outdoor management development is to build a team, give leadership lessons etc. 

It includes residential programs conducted for building team cohesion, leadership development etc.

Purpose of Outdoor Management Development:

1. Team Building:

Many times managers at senior level meet only at important corporate events. Otherwise they are into their own functional activities. But there should be mutual understanding of others function in order to take decision as one company. In order to create common understanding at organizational level and create strong corporate team outdoor management development activities are conducted.

2. Leadership Developments:

As organization tries to build team of leadership, people coming from different functions who are top performers, comprises leadership team. When people come from different function, they may not be prepared enough to take role of leader at organizational level. In order to develop organizational understanding outdoor residential programs are conducted.

Issues in Outdoor Management Development:

1. Relevance of Such Program:

Many researchers consider the poor relevance of outdoor management programs to organizational challenges. Once these programs completed for week or so, people come back to same environment. It is at times not possible to bring change in actual work environments. Hence these programs could not be effective as they are supposed to be.

2. Ability to simulate challenges:

When adventure activities are planned for senior executives, they may not be able to perform. This does not mean they will not able to perform in their professional acts. They may be the rarest resource in their area of expertise.

3. Organizational climate:

Though people learn a lot at outdoor management development centres, its applicability depends on organizational climate. If organizational climate is not allowing change then impact of such developmental program does not last long enough. In order to practice learnings from outdoor management developments, organizational climate must be open, adaptable to change.

Outdoor management development can be effective if it practiced with due consideration of organizational climate i.e. to what extent practices can be improved.

 
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Posted by on December 19, 2017 in HR Word of The Day

 

#HR #Word:#Pygmalion Effect

The Pygmalion effect, or Rosenthal effect, is the phenomenon whereby higher expectations lead to an increase in performance

Image courtesy: WFED

The effect is named after the Greek myth of Pygmalion, a sculptor who fell in love with a statue he had carved.

A corollary of the Pygmalion effect is the golem effect, in which low expectations lead to a decrease in performance;  

Both effects are forms of self-fulfilling prophecy.

By the Pygmalion effect, people internalize their positive labels, and those with positive labels succeed accordingly. The idea behind the Pygmalion effect is that increasing the leader’s expectation of the follower’s performance will result in better follower performance. Within sociology, the effect is often cited with regard to education and social class.

Studies of the Pygmalion effect have been difficult to conduct. Results show a positive correlation between leader expectation and follower performance, but it is argued that the studies are done in an unnatural, manipulated setting. Scientists argue that the perceptions a leader has of a follower cause the Pygmalion effect. The leader’s expectations are influenced by their perception of the situation or the followers themselves. 

Perception and expectation may possibly be found in a similar part in the brain.

 
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Posted by on December 18, 2017 in HR Word of The Day

 
 
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