Beruflich Dokumente
Kultur Dokumente
San Francisco, CA
Todays Discussion
3) Work-Life
4) Performance and Recognition 5) Development and Career Opportunities
How do you look/act different from competitors? How does compensation fit with other Total Rewards? How does pay link to business strategy? How much you value individual performance and differentiate pay as a result?
Compensation Challenge #1
Managing a tight salary budget
Competing for Talent in the For-Profit World
Possible Solutions
Managing a tight salary budget
Made up of grades and corresponding salary ranges developed from data about pay patterns in the market
Used to establish and maintain the internal and market value of the positions in an organization
$ Minimum Salary
$ Market Midpoint
$ Maximum Salary
Determine the market rate for the job, which becomes your midpoint
Put a min-to-max range around midpoint
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Council on Foundations
Watson Wyatt Data Services Abbot, Langer Salary Surveys
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Using a software program, statement itemizes: Compensation Benefits costs paid by organization Retirement contributions
Possible Solutions
Competing with equity grants
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Possible Solutions
Driving performance without a bonus plan
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Compensation Challenge #2
Offering competitive pay package Not attracting unwanted scrutiny Linking pay and performance
Top-Tier Executive
Talent
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Possible Solutions
Offering competitive pay package
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Position descriptions: Make sure the executive has recently reviewed their own job description Executive interviews: Meet with incumbent to understand scope of the job and market match Look for market match: Very few executive positions have no competitive comparable
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Executive pay is closely correlated with company or organization size Most common measurement is annual revenue Additional measures include Budget # of employees
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With whom do you compete for talent? Is there an organization that recruits the same people you do? Anyone that consistently steals employees from you? Use the next best offer method
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Casting a wide net helps eventually create a solid group (may start with hundreds) Then follow these steps to arrive at peer group:
Types of Organizations
What types of organizations are like enterprises or offer like services?
Comparator Group
Arrive at a Comparator Group of 15 to 25 organizations
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Published surveys report actual and target total cash amounts We analyze base salaries and annual bonuses separately Then look at actual cash compensation paid in last fiscal year, updated to the current date Dont use target total cash, because target bonuses can be misleading if actual bonus paid varies significantly from the target
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IRS 990 Disclosures aggregate base salary and bonuses into a Total Compensation column Can make it difficult to determine what was base salary and what was bonus
Once we settle on the market rate for a job, we put a range around that number Typically +/ 20% for executives May be a smaller range for nonprofits
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Model the impact of your current retirement programs on key executives and employees under a variety of assumptions
It may be less expensive to make your retirement plans more generous than to increase compensation levels
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Possible Solutions
Not attracting unwanted scrutiny
Make sure you offer reasonable compensation Use independent 3rd party to conduct pay analysis
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Type of work National position or local in scope Number of employees managed Budget or assets managed
Size budget, revenues, # employees Same business type Could be a mix of nonprofit and for-profit as long as scoped appropriately Entities that compete for same pool of talent
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Comparators must consist of similar mix of compensation elements Include all compensation, whether taxable or not Similar geography (cost-of-living)
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Systematic procedures set and followed Responsible effort to determine reasonable levels All taxable items reported accurately Board of Directors maintain appropriate oversight
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Possible Solutions
Linking pay and performance
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Questions
If you have any questions about this presentation or other compensation issues, please feel free to contact me: Brooke Green Principal Presidio Pay Advisors, Inc. 850 Montgomery Street, Suite 150