performance & compensation derek hughes november/december 2012 staff
TRANSCRIPT
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Performance & Compensation
Derek HughesNovember/December 2012Staff
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Total Rewards
Martocchio, J. J. (2013). Strategic Compensation: A Human Resource Management Approach. Upper Saddle River, NJ: Pearson.
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Shared Perception
What color would your Lamborghini be?
If you had a choice between Bill Gates’
fortune and world peace…
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Performance & Compensation
Compensation Model
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VCSU Staff ModelComp Factor Percent Example
(3%)
TOTAL 100% 3.00%
Across the Board (ATB) 50% 1.50%
0.45%15%
35% 1.05%Merit
Market/Equity
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Across the Board (ATB)
• ATB is indiscriminate• Employees get 50% of the legislative
increase
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Market/Equity
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Market/Equity• CUPA HR & Job Service ND salary data
– CUPA HR primary for higher education, industry specific positions
– Job Service ND for local hire positions common to all industries
• Compare all positions basis the duties in job description, and education required– Not title, not person
• Compare all positions to the market median– Not mean
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Merit• Pay for performance• Incentive Pay• Links employee pay to measures of
performance
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Additional Values• No employee below an 80% floor.
– No ceilings
• Years of Service (1%/yr.) – Credit not given for low performing year
• Years merit pay earned performance (3%)
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Performance & Compensation
Individual & Performance Model
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Performance Goals
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Measure Performance
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Performance & Compensation
Timeline
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Timeline• January-March begin a new review year
– Everyone on same timeline (may be some overlap)– One-year from start date– Set goals
• July 1, 2014– Merit model takes effect
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Questions• What is the risk of not changing? If I wait long
enough, will the change just go away?
• What are my choices during the change process? What are the potential consequences to me of not changing?
• What are the benefits of supporting the change?