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


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)


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)


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


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.

8

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


‘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


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


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


‘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.


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

14

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


15

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.



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.)


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

17

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.


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.

18


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.

19

Minimum 1st Quartile Midpoint 3rd Quartile Maximum

$40,000 $45,000 $50,000 $55,000 $60,000



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

20

Minimum 1st Quartile Midpoint 3rd Quartile Maximum

$80,000 $196,000 $102,000 $118,000 $144,000



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

21

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


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.

22

Grade

4Min 1st Q Midpt 3rd Q Max

$20,000 22,500 25,000 27,500 30,000


22,000 24,750 27,500 30,500 33,000


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’


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


Compensation & Benefits


Compliance


Organizational Development


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


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


Employee Relations


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.


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

26

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


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

27

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%)


28

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 $


RangeMaximum
























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



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.

29


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.

30


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.)

31

Job Components in Sample Accting Career Path Level Guide

32

Director/ Sr.

Manager

MBA required

Generally, 12 to 15+

years15 $140,000

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx


Level 3 xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Etc. Etc. Etc. Etc. Etc.

Manager

B.S. Accting or Finance,

MBA Preferred

10 to 12 years

13 $116,000



Level 2 xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx


Supervisor

B.S. Accting or Finance,

MBA Preferred

8 to 10 years

12 $104,000Level 5 xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Etc. xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Level 1 xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

xxxx


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


experience10 $82,000

Level 3 xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Etc. xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx


Intermed Accountant



experience9 $68,000

Level 2 xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Level 2 xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx


Associate Accountant


< 2 years related

experience8 $56,000

Level 1 xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Level 1 xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx


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


Limited Time to Develop Competency Descriptors? Go Generic

33

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


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



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

35


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.

competency-based and other salary management best practices brian walby, ph.d., ccp, consultant to...

Documents

job analysisdescriptions

job evaluation

job functionsresponsibilities

job analysis ja

key job duties

based pay

formatting job analysis

job content points analysis