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By Sharon K. Koss SPHR CCP

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Additional resources for Solving the Compensation Puzzle: Putting Together a Complete Pay and Performance System (Practical Hr Series)

Sample text

Non-profit management explains this behavior by stating that it cannot make demands on its employees because it assumes that their pay is too low. This is not based on hard facts, only assumptions and the rumor mill. This caused good employees to leave the organization because they were disgusted with their low pay. Even more compelling is that they were disgusted with management’s tolerance of poor performance. Compensation’s Role in Human Resource Strategy • 35 What’s the Best Course of Action?

Are the organization’s promotional pay policies consistent? n Does the organization review where employees fall on the pay range according to experience, performance and longevity? n How is the organization’s pay system administered? What are the strengths and weaknesses of the current system? How is your system structured and what do you want to change about the following: n Number of grades n Separate scales for different types of jobs such as non-exempt, exempt and executive n Size of jump between grade mid-points n Placing a newly created job in the pay range n Determining how and when a job gets reviewed due to changes in responsibilities What are some constraints?

Program finalized and final changes incorporated. Meet with City Council. $3,000 Step 8 Start: 5/20 Finish: 7/30 HR, senior staff, consultant Design management training, create employee communication plan and salary administration manual. $5,000 Total $32,000 *Costs are listed for sample purposes only. Outside consulting costs will vary depending on how many unique jobs must be studied, how much work the job descriptions entail, union or non-union, facility location(s) and the availability of HR to perform some of the work.

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