Competency-Based and Other Salary Management Best Practices Brian Walby, Ph.D., CCP, Consultant to...
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Transcript of Competency-Based and Other Salary Management Best Practices Brian Walby, Ph.D., CCP, Consultant to...
Competency-Based and Other Salary Management
Best Practices
Brian Walby, Ph.D., CCP, Consultant to American Society of Employers
Walby and Associates LLC2
Format and Topics for Today*
1
Format:
Presentation: Best practices - competency-based pay and salary management Most discussion and questions at end on any topic (and after the session) High level and many topics; cannot delve into depth in time period we have
Topics: Competency-Based & Other Salary Management Best Practices (key focus)
Aligning these with:
Compensation Strategy / Philosophy
Behavioral and Technical Competencies
Career Pathing
Performance Management
Other HR Programs* Note: Each company must determine a salary management program that is most appropriate for its own culture, business,
preferences, etc. Information, content, concepts, etc. discussed today are generally consistent with best practices as endorsed by World at Work (Brian Walby – Lifetime Member) as well as most major HR/Compensation consulting firms.
Walby and Associates LLC
Best Practice ‘Sequential Phases’ in Salary Planning
1. Project Plan/Management: Staffing, tasks, roles, timing, methodology
2. Compensation Strategy / Philosophy (key – topics on next slide)
3. Job Analysis (JA): Gather key job duties, responsibilities, requirements
4. Job Documentation/Descriptions (JD): Formatting job analysis data
5. Job Evaluation: Market pricing [U.S.] or Job content [points] analysis
6. Pay Structure Development: Traditional grades, Wide grades, Bands
7. Assign/Slot Jobs Into Structure: Market pricing and Internal equity
8. Program/Plan Communications: Messages, media, meetings, etc.
9. Program/Plan Implementation: HRIS/Payroll, Pay management
programs/systems, Transactions/process, HR staff roles, etc. 3
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Compensation Strategy / Philosophy
Key Components of an Effective Compensation Strategy/Philosophy
(provides framework upon which pay policies are developed)
Company mission, values, objectives
Frame of comparative referenceSize, industry/sector, geographic index of comparator companies
Mix of, market target (e.g. 50th %ile) and approach per pay element: Base (85% use 50th), Annual, Long Term Incentives, Benefits, Perquisites
Specific Considerations re: Base Salary (build Policies from Strategy)Pay structure(s), pay drivers (e.g. merit, competencies), position in
range per experience / performance.
Compensation communications (who will know and what they will know)
(Note: Approx 2/3 of companies have written comp strategies; >90% have written or unwritten)
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Best Practices/Key Data Capture in Job Analysis/Descriptions
Conduct Full Job Analysis (JA) every 3 to 4 yeas Each year give incumbents and managers opportunity to review/modify JDs JDs developed from JAs should provide 3-4 sentence job summary/overview JD should also provide the 5 to 7 key functions comprising 70-80% of the job
• Functions/responsibilities should provide identification of competencies Other Sections to include on JA / JD for optimal legal and HR use (W&A can
provide sample templates) • Job Title · Job Code• Department/Function · FLSA Status• Division or Business Unit (if applicable) · Reports to (Title)• Minimum and Preferred Education / Training · Non-essential, functions• Minimum and Preferred Experience / Skills · Internal/External Contacts• Use of Discretion and Judgment (For FLSA) . Effective date• Who JD was Prepared by, Reviewed and Approved by (Function and HR) • Mental, Physical Demands, Work Conditions (for ADA, if/as needed)
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Competencies
Definition
Behavioral competency: Any incumbent employee behavior that is readily observable, measurable and characteristic of successful performers in a job, role, company or culture. [WorldatWork]
e.g. Leadership, Interpersonal Skills, Flexibility, Initiative, Team-oriented, etc.
Technical competency: Any underlying major bodies of knowledge or skills needed to perform a particular type and level of technical work activity. Often assessed by job analysis, work output evaluation, work observation, technical review, and/or other structured testing. Typically viewed as ‘necessary but not sufficient’ to fully evaluate employees.
e.g. Technical competencies for software engineers often include: • Software requirements• Software design and coding• Software testing• Software maintenance• Software management
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Competencies (continued)
Competency ‘Model’ Definition A set of competencies that can apply to an entire organization or to a
particular job family, such as finance, purchasing, engineering, HR, etc.
A ‘model’ describes differentiating performance behaviors or technical skills / knowledge. Typically includes 6 to 10 competencies. Each competency may have several ‘levels’ of proficiency
Competency models for a given company may be developed either:Organically: Unique to a given company by job analysis (on-site
observation or job analysis forms), expert panels, focus groups, etc.
And / OrGenerically: Using and/or modifying pre-established or standardized
models from professional or trade associations, consulting firms etc.
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Competency Use or Planned Use Within HR Functions
100%
90
80
70
60
50
40
30
20
10
Prevalence/ Percentage
of Companies
Career Planning / Pathing
Recruitment / Selection
Training and Development
Performance Management
Talent Management/ Succession
Compensation
Recent research indicates competencies are increasingly used across various HR functionsRecent research indicates competencies are increasingly used across various HR functions
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‘How’ It’s Done – Coordinated Competency Use Across Various HR Functions
Aligned and Coordinated
Competency Use Across Various HR
Functions Implement PerformanceManagement
Program
Conduct Candidate
Assessment &Selection
Create Career Planning and Pathing Level Guides
Within Salary Structure
Establish Total Compensation and Talent Strategy to Support Business
Success
Develop Technical & Behavioral
Competencies, Job Roles and Functions
8Walby and Associates LLC
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Common Advantages: Aligned Competency Use Across HR Functions
Companies / employees focus on development of skills, knowledge and behaviors with greatest impact on strategic corporate objectives
Talent Management/HR functions / processes / policies regularly developed/modified in consideration of common elements & ‘big picture’
Employees view their position, responsibilities, career pathing in context of the total organization, and see themselves as key component
Enhances recruitment, retention, motivation of higher caliber candidates and employees
Contributes to (correlation with) employee efficiency/performance, corporate financial/operational performance, and customer satisfaction/ retention
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Know the Link Between Goals and Behavioral Competencies
Goal Setting: Goals, Measures and Behaviors Corporate and other Goals Drive Measures Measures, in turn, drive Behaviors (i.e., you are likely to get what you measure,
especially if you pay for what you measure) Ensure your process begins with corporate strategy and goals
Goals Measures Behaviors
Expectancy Theory: Performance (behaviors/competencies) most likely to improve when employees:
Have ability to perform Have clear understanding of what is expected (Corporate, Division, Individual Goals) Receive constructive feedback and reinforcement Have adequate support (tools, equipment, budgets, etc.) Believe additional effort will result in improved performance (individual/group) Believe improved behaviors and competencies will be rewarded
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‘Best Practice’ Methods to Create Company Competency Models
Job Analysis (JA) or Job Description Analysis (behavioral/technical): Review of JA forms or JDs by experienced HR staff or consultants to identify key
and common competencies across various positions and/or levels Can also or further define levels by methods below or in combination:
Modify / Adapt Standardized Models (behavioral/technical): Compare JA and JDs against competencies from standardized sources
including compensation surveys or professional & trade association models. Focus Groups (primarily for behavioral competencies):
Facilitate groups of high performers with standardized questions regarding what and how a given function or responsibility is successfully completed.
Tech Panels/Tech Workflow/Output Review/Observation/Documentation of needed competencies for business processes (tech competencies). Panels or document review by strong performers or functional managers to
identify/confirm/modify job family/career path specific tech skills/knowledge. Behavioral Event Interviews (behavioral/technical; time consuming):
‘BEIs’: Individual interviews with successful incumbents to extract behavioral or technical competencies from work experiences described.
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Effective Behavioral Competencies and Standards should be: Written: Helps to ensure employee understanding and commitment
Aligned: with Organizational Mission/Values/Objectives. Should be able to indicate how each competency supports/reflects the big picture
Relatively Brief: Lengthy standards cause potential misunderstanding
Realistic: Should ensure that expectations are achievable; historical data, professional models and employee input are all helpful
Precise: Eliminate subjectivity. For legal and practical reasons, only have as many ‘levels’ (i.e. usually 3 or 4) in your rating system as you can truly define/ describe, and result in generally consistent evaluations across trained raters
Reevaluated: Should be reviewed at least bi-annually
Consistent: Standards for the same types of positions should be consistent across the organization
Note: Ideally and typically, standards should be developed for each level of performance. From a practical standpoint, it is most important to initially develop standards for the expected level (i.e., Meets Expectations or Stage II of a 3 level competency.)
Behavioral Competencies: Developing Standards/Models
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Possible Levels / Stages of Behavioral Competencies
Advantages DisadvantagesFive Levels
Provides potential for differentiation Generally consistent with bell curve concept Typically includes an ‘exemplary’ or ‘superior’ level, though this must be accurately defined to differentiate from ‘above average’ (typical Level 4) employees.
Must be able to differentiate 5th level for defensibility; requires time to draft/develop meaningful distinctions Oftentimes, only four levels are used in practice Level 3 (middle) Rating is often perceived negatively, no matter how it is labeled
Four Levels Excludes a ‘middle’ rating, which is often perceived as average or negatively Can allow for levels of ‘exceeds’, ‘fully meets’, ‘less than fully meets’, ‘does not meet’ (i.e. performance plan..) A good approach for organizations that want to build a ‘most’ of our employees (e.g. 70- 80%) meet or fully meet expectations culture, and/or focus primarily on high/low Fewer choices helps result in more rater consistency as long as the level are well defined
May skew raters positively or negatively if levels are not defined well May foster central tendency to 2nd highest level, although this is usually a fully acceptable employee, and is the intent of the organization Oftentimes, only three levels are used in actual practice. 4th level is typically for individuals too new in position to evaluate or, more likely, individuals on a performance plan which often lead to termination.
Three Levels More consistency among raters when few choices Typically, ease of completion and decision making among raters
Third level often needs clarification for use in probation, discipline or dismissal if top two are more positive Does not allow differentiation of a top 5-10% or so, if this is truly the case and Company wants to recognize them
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Example of 3 Stage or Level Behavioral Competency
Behavioral Competency: ‘Managing Conflict’: Definition: Deals effectively with others in potentially antagonistic situations; uses appropriate interpersonal techniques and methods to reduce tension and conflict among team members.
Needs Improvement Meets Expectations* Exceeds Expectation Does not always
recognize when conflict exists or probe for interests of conflicting parties
Sometimes appears to avoid conflict, or allows it to expand when early intervention could help
Focuses too much on own interests rather than more broadly seeking other interests
Allows or fosters win/lose situations rather than seeking compromise
Personalizes conflicts or becomes defensive
Identifies when a conflict occurs and takes steps to address it
Accurately assesses when to get involved and when to let parties resolve the matter on their own
Recognizes differing interests and viewpoints, and allows expression of these in respectful manner
Recognizes potentially harmful or illegal (violence, dangerous, harassment, etc.) situations and takes appropriate action
Assists parties to achieve mutually acceptable ‘win-win’ solutions
Highly skilled in recognizing early warning signs and takes appropriate steps to prevent issues before they escalate
Excels in transforming conflict into problem solving; insightfully diagnoses creative and effective solutions well accepted by others
Creates environment where differences are valued and used to achieve superior results
Proactively uses positive constructive techniques to help team members anticipate and effectively address potential conflicts
* Common alternatives: ‘Solid performer’, ‘Fully acceptable’. Used if building a culture in which ‘most’ (70% to 80%) of employees are performing as generally expected.
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Sample Technical Competency Model Development Process
Best Practice Technical Competency Model Steps include:
Review corporate goals and talent management strategy analysis/development
Purposes of competencies (including alignment with other HR programs)
Identify job families and feasibility of process, inclusion, timing, etc.
Conduct job and work process analysis (as noted earlier)
Identify / define technical competencies (JA, tech panels, high performers, etc.)
Define proficiency standards, levels and career profiles: typically 4 - 5 levels for
technical competencies (JA, tech panels, standard models, high performers)
Validate models (correlation, review of results, surveys etc.)
Develop total framework of competencies and levels (see next slides)
Incorporate into HR programs (recruitment, development, pay etc.)
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Sample Technical Competency Levels / Model
From Sample Software Engineer Technical Competencies (see earlier slide #5 in this document), below are sample ‘4 level’ competency descriptors for: Software Design and Coding Software Testing
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Competency Level I Level II Level III Level IV
Software Design and Coding
Develops/updates basic design documents. Debugs code for basic C++; familiar with coding tasks, rules, standards. Creates diagrams. Familiar with SW development tools and process.
Develops/updates moderately more complex designs. Writes and debugs code for various C, C++. Knows coding standards. Creates diagrams; applies higher level SW tools
Implements requirements to develop, update complex documents; works with higher level and complex coding standards and diagrams. Proficient in highest level SW tools.
Leads development, creation, updating of all SW design requirement documents. Serves as role model in adhering to highest standard development processes. Designs, debugs most complex software.
Software Testing
Tests basic software code for operational effectiveness and system integration. Prepares initial software test documents for standard applications.
Tests moderate complexity software code for embedded systems and manuals. Prepares SW for integration testing. Conducts performance, measurement and validation
Advanced proficiency in testing multiple program units concurrently. High level use of flowcharts to design overall test units used by all units.
Directly leads and oversees all testing of software code in his/her programs and projects. Releases fully tested production and beta level software design.
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Competencies in Salary Planning Using Pay Structures
Now that we’ve discussed competencies – behavior and technical – AND their alignment with other HR functions and services,
It is important to explain and understand how competencies, competency models and, shortly, other components of jobs work within the context of:• Various Types of Salary Structures• Career Path and Level Guides
The following several slides introduce Salary Structures and best practices regarding how behavioral and technical competencies and models can work within these structures.
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3 Primary ‘Types’ of Salary Structures: Grades, Bands
Definition: Salary or Band ‘Range’ The dollar amount extent (minimum to maximum) an organization will pay for jobs
assigned to that band or range within a given pay structure.
Type 1. Traditional Grades: (most prevalent; used by 60% to 70% of companies)
Traditional grade structures typically have approx12 to 20 grades, are somewhat narrow: ‘Ranges’ typically 30% (nonexempt) to 60% (management).
Below is an example of a traditional grade, with a min to max range of $40,000 to $60,000, or 50% ($60,000-$40,000 = $20,000 = 50% of $40,000)
Common Advantages: Cost Control (lower ‘range’ and maximum) More Accurate Matching of Market Data with Grade Midpoint (More Grades) ‘Promotions’ to higher grades are easily defined
Common Disadvantages: Often need more grades to represent full spectrum of market pay data. Increased tendency for ‘reclassification requests’ even when minor job changes Transfers can be more difficult because of so many grades; narrower platform for competency pay.
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Minimum 1st Quartile Midpoint 3rd Quartile Maximum
$40,000 $45,000 $50,000 $55,000 $60,000
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3 Primary ‘Types’ of Salary Structures: Grades, Bands
Type 2. ‘Wide’ (or ‘Wider’) Grades: (used by approx 20% to 25% of companies) Wide grade structures typically have approx 10-12 to 18-20 grades with somewhat
wider ranges of ‘typically 40% (nonexempt) to 100% (management). Below is an example of a traditional grade, with a min to max range of $80,000 to
$144,000, or 80% ($144,000-$80,000 = $64,000 = 80% of $80,000)
Common Advantages Ability to capture/award higher levels of market pay (higher max) Can better differentiate pay on various factors: performance, competencies, experience Often a sometimes better platform for person-centered (competencies) or hybrid/alternate pay
approaches (e.g. behavioral competencies plus steps) and pay adjustments Administrative / managerial flexibility; career/pay growth if limited promotional growth
Common Disadvantages: Potential increased costs, cost control and/or admin management due to higher maximums Usually fewer grades; more midpoint variance of a job’s grade assignment from market
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Minimum 1st Quartile Midpoint 3rd Quartile Maximum
$80,000 $196,000 $102,000 $118,000 $144,000
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3 Primary ‘Types’ of Salary Structures: Grades, Bands
Type 3. Salary ‘Bands’: (Note: now used by less than 15% of reporting companies) A 1990s+ trend involving consolidation of two or more ‘grades’ into fewer but
much wider ‘bands’, typically used to develop ‘levels’ or ‘job families’. Typically involve 3 to 5 ‘market’ or ‘control’ points within the wider Band Range
(100% to 300%) as ‘anchors’ for given job values in a career path, job family.200% Range: 4 ‘Market/Control’ Points ($150,000-$50,000=$100,000= 200% of $50,000)
Common Advantages Enhanced support of person-based career development and progression within a job family/group Decreased emphasis on promotions; sometimes easier transfer of employees across divisions, depts.
De-emphasizes organizational hierarchy; flexible platform for person-based pay
Common Disadvantages Requires higher managerial cost control/focus on competencies, performance, pay policy, control etc. Control points still usually based on job evaluation approach (e.g. market data etc – i.e. why do this?) Promotions can be harder to define, may involve only mid-band (market point) changes, etc. Typically requires high commitment to employee career and competency development
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Minimum Market Pt. A Market Pt. B Market Pt. C Market Pt. D Maximum
$50,000 $70,000 $90,000 $110,000 $130,000 $150,000
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Final Comments on Salary Structures(Most small to midsize companies have 1 or 2 structures, except for geographic indexes)
Grades or bands within a given salary structure typically ‘overlap’ based on the established ‘midpoint progression’ of each grade.
Example below: 50% grades overlap by 10% midpoint progression.
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Grade
4Min 1st Q Midpt 3rd Q Max
$20,000 22,500 25,000 27,500 30,000
5Min 1st Q Midpt 3rd Q Max
22,000 24,750 27,500 30,500 33,000
6Min 1st Q Midpt 3rd Q Max
24,200 27,225 30,250 33,275 $36,300
Greater salary range midpoint progression (e.g. 16% to 20%+) = Fewer grades to represent total pay spectrum of all jobs in the structure Sometimes requires clarification of what constitutes a ‘promotion’
Smaller salary range midpoint progression (e.g. <10% to 15%) More grades needed to represent total pay spectrum of all jobs in structure Easier clarification of what constitutes a ‘promotion’
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Example of 5 HR 4-Stage ‘Tech Competencies’ Required for Job Levels in HR Generalist Career Path Level Guide & Pay Grades
BAND / GRADE (Example) 8 10 12 15 LEVEL HR Generalist I HR Generalist II Sr. HR Genralist HR Consultant Recruitment/Selection
Stage I Stage II Stage III Stage IV
Employee Relations
Stage I Stage II Stage III Stage IV
Compensation & Benefits
Stage I Stage II Stage III Stage IV
Compliance
Stage I Stage II Stage III Stage IV
Organizational Development
Stage I Stage II Stage III Stage IV
Similar to prior page, except these are sample HR technical competencies.
Each ‘Stage’ of an HR Technical Competency should be assessed / attained prior to moving/promotion to the next level (e.g. HR Generalist II, III, etc.) job
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Alternative: 5 HR 4-Stage ‘Tech Competencies’ Required for Job Levels in HR Generalist Career Path Level Guide & Pay Grades
BAND / GRADE (Example) 8 10 12 15 LEVEL HR Generalist I HR Generalist II Sr. HR Genralist HR Consultant Recruitment/Selection
Stage I Stage II Stage III Stage IV
Employee Relations
Stage I Stage II Stage III Stage IV
Compensation & Benefits
Stage I Stage I Stage II Stage III
Compliance
- - -
Stage I Stage II Stage III
Organizational Development
- - -
Stage I Stage II Stage II
In this sample company’s HR technical 4-stage competency model, each competency stage is not needed to correlate with a new HR Generalist role.
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Best Practices: Linking Competencies to Fixed & Variable Pay
Recent Best Practice Research Data Indicates: Approximately 60% to 70% of organizations have linkage between
competency ratings/proficiency and base salary adjustments Approximately half (50%) of the companies linking competencies to salary
adjustments do so ‘informally’, or use ‘guidelines’ rather than strict amounts or percentages (providing operating managers some flexibility)
Whether ‘guidelines’, ‘strict percentages’, or ‘increase ‘ranges’, approximately 60%+ of organizations linking competencies to salary use one of the following: Factor for salary adjustments within job ranges (most common)
• Behavioral with or w/o technical competencies, or include goal attainment Competency levels are aligned with ‘target salary’ or ‘pay zone’ within bands Developmental pay increases are typically separate from, but often added
to, performance increases Approximately 40% of competencies link competency ratings to variable pay,
commonly as small ‘development bonuses’ or ‘incentive award modifiers’. Approx 70%+ of companies use competencies (usually ‘technical’, but also
‘behavioral’) as factors in promotion to a higher grade
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Sample Salary Grade Progression ‘Guideline’ based on Behavioral and/or Technical Competency Rating/Proficiency
Sample Guideline for Salary Progression Scale within Band / Range Above
Stage IStage I Stage IIStage II Stage IIIStage III
Average Overall Behavioral Competency Rating Scale ↑
Stage IStage I Stage IIStage II Stage IIIStage III
Average Overall Technical Competency Rating Scale ↑
Stage IVStage IV
First Quartile Second Quartile Third Quartile Fourth Quartile
Salary Range Quartiles (50% range Min to Max)Min: $60,000 1st Q $67,500 Midpt: $75,000 3rd Q: $82,500 Max: $90,000
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Relevant ‘Guidelines’ Research Data regarding Increase for Top Performers:
Approx 25% of companies establish 125% of average increase for top performers Approx 50% of companies establish 150% of average increase for top performers. Approx 20% of companies establish 200% of average increase for top performers
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Position in Salary Range:
Top Third
Middle Third
Bottom Third
Structure only increase
Structure only Increase
No Increase or
Structure Only Increase
Large Pay Increase (Average
plus 3%-5%)
Low
Separate Behavioral (primarily) OR Combined Competency (Behavioral/Technical) Rating
Sample Competency Pay-Based Adaptation of Merit Matrix
Average Pay Increase (e.g. 3%)
Above Average Pay Increase (Average
+1%-2%)
Average to Slightly Below
Average Increase
Lump Sum Similar to Average
Mid High
Sample Approach to Annual Base Salary Increase/Adjustment in a Pay Grade:(Behavioral competencies/factors are used similarly for increase guidelines in 60% of companies)
Above Average Pay Increase
(Average + 1%-2%)
Above Average Pay Increase
(Average + 1%-2%)
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Competency ‘Blocks’ Can Use Fixed Dollar Amounts or Percentages in Pay Bands (note: less often used due to complexity)
Level 5 ‘X’ % of Range or $
‘X’ % of Range or $
‘X’ % of Range or $
RangeMaximum
Level 4 ‘X’ % of Range or $
‘X’ % of Range or $
‘X’ % of Range or $
‘X’ % of Range or $
‘X’ % of Range or $
Level 3 ‘X’ % of Range or $
‘X’ % of Range or $
‘X’ % of Range or $
‘X’ % of Range or $
‘X’ % of Range or $
‘X’ % of Range or $
Level 2 ‘X’ % of Range or $
‘X’ % of Range or $
‘X’ % of Range or $
‘X’ % of Range or $
‘X’ % of Range or $
‘X’ % of Range or $
Level 1 ‘X’ % of Range or $
‘X’ % of Range or $
‘X’ % of Range or $
‘X’ % of Range or $
‘X’ % of Range or $
‘X’ % of Range or $
Range Minimum
Competency‘A’
Competency‘B’
Competency‘C’
Competency‘D’
Competency‘E’
Competency‘F’
Each level of each competency attainment is affiliated with either a fixed dollar amount or a percentage of the total width of the salary range
Alternatively, or in tandem with this approach, employees may receive a ‘one time’ (lump sum) award for attaining new competency levels
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Competencies in Career Path, Salary Increases, Level Guides
Now that we’ve discussed competencies – behavior and technical – AND their alignment with other HR functions and services,
AND their potential application to salary structures pay adjustments, It is important to explain and understand how competencies & models
and other components of jobs work within the context of Career Path and Level Guides along with salary progression.
Key Points and Distinction: Behavioral Competencies are most often used to adjust salary for an
employee within his or her assigned grade range in a structure.• i.e. Traditional performance evaluation allows moving ‘through’ range.
Technical Competencies are most often used in establishing and defining (and promoting into) various levels in a Career Path / Level Guide along with other job components. • The following slides introduce best practice Career Path Level Guides
using both Technical Competencies and Other Job Components.
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Other Key Job Components in Establishing Career Path Level Guides
It is important to now identify those job components commonly used in tandem with competencies, other HR functions, and pay structures to establish Career Path Level Guides, which can further enhance any company’s approach to total career development for employees
AND
How all these factors, working collaboratively, directly contribute to
Employee career satisfaction
Enhanced employee efficiency, proficiency, motivation, retention
And, ultimately, using our most important resource – our employees
– to achieve corporate success – operationally and financially.
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Other Key Job Components in Establishing Career Path Level Guides
There are several additional job components that are important, research
Indicates, and approximately 70% of ‘best practice’ companies anchor their
Career Path Level Guides with the following: Technical Competencies (as discussed herein so far) Overall Scope and Basic Roles and Responsibilities of one’s job Financial, Decision-Making and other levels of Authority Primary Internal and External Level of Interface and Communications –
including written and face to face. Report Levels – Upwards & Downwards (Level/Number of Reports) Minimum and Preferred Level of 1) Education and 2) Experience
HOW? – Sample on Next Slide
Ideally, EACH of the Above Components should be briefly described within EACH of the levels in a Job Family Career Path Level Guide
(use Job Analysis, Expert Panels, Consultants, Adapt Std Models, etc.)
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Job Components in Sample Accting Career Path Level Guide
32
Director/ Sr.
Manager
MBA required
Generally, 12 to 15+
years15 $140,000
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Level 3 xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Etc. Etc. Etc. Etc. Etc.
Manager
B.S. Accting or Finance,
MBA Preferred
10 to 12 years
13 $116,000
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Level 2 xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Etc. Etc. Etc. Etc. Etc.
Supervisor
B.S. Accting or Finance,
MBA Preferred
8 to 10 years
12 $104,000Level 5 xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Etc. xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Level 1 xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxx
Etc. Etc. Etc. Etc. Etc.
Lead Accountant
B.S. Accting or Finance; start MBA
6 to 8 years related
experience11 $95,000
Level 4 xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Etc. xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
N/A Etc. Etc. Etc. Etc. Etc.
Senior Accountant
B.S. Accting or Finance
4 to 6 years related
experience10 $82,000
Level 3 xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Etc. xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
N/A Etc. Etc. Etc. Etc. Etc.
Intermed Accountant
B.S. Accting or Finance
2 to 4 years related
experience9 $68,000
Level 2 xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Level 2 xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
N/A Etc. Etc. Etc. Etc. Etc.
Associate Accountant
B.S. Accting or Finance
< 2 years related
experience8 $56,000
Level 1 xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Level 1 xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
N/A Etc. Etc. Etc. Etc. Etc.
Roles, Job
Respons
Level Fin and Ops
Decisions
Level/Type of Int/Ext Commun
Report Level/Staff
Managemnt
Grade Midpoint
Salary Grade
Position /Title
(Accting)
Preferred /Minimum Education
Minimum Years of Related
Experience
Tech Comptcy
#1
Tech Comptcy
#2
Tech Comptcy
#3
Tech Comptcy
#4
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Limited Time to Develop Competency Descriptors? Go Generic
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5Demonstrates comprehensive, expert knowledge; applies competency level in exceptionally diffi cult situations; serves as internal resource and advises others.
4
Demonstrates broad understanding and application of the competency in diffi cult situations; generally requires no or only limited oversight. Provides guidance to lower levels.
3
Demonstrates solid understanding, proficiency and application of the competency in standard or expected situations. Generally involves periodic oversight and review by Supervisor or Manager.
2
Demonstrates understanding and application of the competency in some basic or standard situations. Frequent ongoing review of all work by Supervisors or Team Leader.
1
General awareness and/or application of the competency in basic or simple situations. Close and extensive guidance regularly required by exempt and/or higher level professionals.
Generic Competency Level Descriptors
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CA
RE
ER
LA
DD
ER
SCareer ‘lattices’ (lateral moves) allow career paths to become communications vehicles for demonstrating opportunity
Sr. Tech Trainers
Service LevelManager
Senior Planning Manager
ProjectLeader
Sr. BusinessAnalyst
Sr. Rel. Mgmt. Specialist
Sr. TechWriters
Sr. AppTester
BusinessAnalyst
ClientSupport Analyst
ProjectManager
CAREER LATTICES
App Analyst IIClient Support
Specialist
Rel. Mgmt.Specialist
PlanningManager
Planner
Tech Trainer I Tech Writer I App Tester I App Analyst I Sr. ClientSupport Analyst
Tech Trainer II App Tester IITech Writer II
Walby and Associates LLC
Walby and Associates LLC
Best Practice / Successful Competency Pay Communications
Enlist full top management support throughout program development Plan the Communications Strategy: Message, Meetings, Media, Timing Most companies use various group meetings to outline program basics
Company compensation strategy should be included in all group mtgsEnsure understanding of alignment of competencies within the
company’s performance management system Most companies do not disclose the entire salary structure in meetings Companies claiming highest program success engage in one-to-one
meetings between manager and employee following larger group mtgs Employees should understand their grade and pay range, where they are
in the range and why, know the standard ‘career path’ (and alternatives) within their discipline, how to progress further in range and be promoted
Conduct follow-up surveys of all participants: compare evaluations by level (e.g. management vs. exempt) and by department
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Walby and Associates LLC36
Competency-based and Other Salary Management Best Practices
Thank You Very Much for Attending!!
Further Questions or Discussion?
Please see Brian when session is completed.