srd consulting services, llc compensation planning on a shoestring “when excel spreadsheets are...
TRANSCRIPT
![Page 1: SRD Consulting Services, LLC Compensation Planning on a Shoestring “When Excel Spreadsheets Are The Only Option”](https://reader036.vdocument.in/reader036/viewer/2022062515/56649d215503460f949f60ab/html5/thumbnails/1.jpg)
SRD Consulting Services, LLC
Compensation Planning on a Shoestring“When Excel Spreadsheets Are The Only Option”
![Page 2: SRD Consulting Services, LLC Compensation Planning on a Shoestring “When Excel Spreadsheets Are The Only Option”](https://reader036.vdocument.in/reader036/viewer/2022062515/56649d215503460f949f60ab/html5/thumbnails/2.jpg)
Steve is a Certified Compensation Professional with over 37 years’ experience as a human resources professional. He has expertise in global compensation program administration (including executive compensation, long/short-term incentives, job evaluation and market research), employee communications, HRIS coordination, and project management. Steve has led compensation projects in the Americas, Europe, and the Asia-Pacific region. He also has extensive experience with pay equity analyses and implementing strategies to leverage diversity and change management initiatives. Steve has also had leadership roles in training and organization development, labor relations, salaried administration and human resource planning. He has also consulted and facilitated acquisitions, mergers, and joint venture activities.
Steve advises a wide variety of clients, among them both publicly-traded and closely-held businesses, on their compensation and change management needs. Prior to entering the consulting profession, Steve was a Senior Consultant on the Global Compensation Staff of General Motors Corporation.
Steve earned a doctorate degree from Wayne State University. He also received M.S. and B.S. degrees from Ball State University.
Steven R. Davis, Ph.D., CCP
![Page 3: SRD Consulting Services, LLC Compensation Planning on a Shoestring “When Excel Spreadsheets Are The Only Option”](https://reader036.vdocument.in/reader036/viewer/2022062515/56649d215503460f949f60ab/html5/thumbnails/3.jpg)
Workshop Objectives
Develop an awareness of techniques that can be used with Excel workbooks to:
• Create and distribute compensation planning worksheets• Efficiently merge and re-publish planning worksheets for
roll-up approvals• Analyze compensation data and create meaningful
reports• Generate individual employee compensation statements
![Page 4: SRD Consulting Services, LLC Compensation Planning on a Shoestring “When Excel Spreadsheets Are The Only Option”](https://reader036.vdocument.in/reader036/viewer/2022062515/56649d215503460f949f60ab/html5/thumbnails/4.jpg)
Salary Planning “Tactical” DECISIONS
• Fund determination & allocation (e.g., mid-point administration, budget-based, performance-driven, etc.)
• Identification of planning groups• Identification of compensation planners/approvers • Define “rollup” & approval timing• Planning in local currency versus % change versus
% of funded amount• Rounding rules, “hard” versus “soft” edits• Compensation plan analytics and reports
![Page 5: SRD Consulting Services, LLC Compensation Planning on a Shoestring “When Excel Spreadsheets Are The Only Option”](https://reader036.vdocument.in/reader036/viewer/2022062515/56649d215503460f949f60ab/html5/thumbnails/5.jpg)
Basic
3%
High Performer
1%
Supplemental
.5%
Compensation budgets can consist of multiple components…
Market Adjustment
.5%
![Page 6: SRD Consulting Services, LLC Compensation Planning on a Shoestring “When Excel Spreadsheets Are The Only Option”](https://reader036.vdocument.in/reader036/viewer/2022062515/56649d215503460f949f60ab/html5/thumbnails/6.jpg)
Fund allocation for initial employee recommendations…
• Approved Fund or Budget
• Salary Intervals • Performance Rating• Strategic Allocation (e.g., Modeling)
– Performance– Percent of Market Rate– Pay Equity– Retention
![Page 7: SRD Consulting Services, LLC Compensation Planning on a Shoestring “When Excel Spreadsheets Are The Only Option”](https://reader036.vdocument.in/reader036/viewer/2022062515/56649d215503460f949f60ab/html5/thumbnails/7.jpg)
Fund AllocationSalary Intervals
![Page 8: SRD Consulting Services, LLC Compensation Planning on a Shoestring “When Excel Spreadsheets Are The Only Option”](https://reader036.vdocument.in/reader036/viewer/2022062515/56649d215503460f949f60ab/html5/thumbnails/8.jpg)
Fund AllocationPerformance Rating
Performance Rating / Compa Ratio
![Page 9: SRD Consulting Services, LLC Compensation Planning on a Shoestring “When Excel Spreadsheets Are The Only Option”](https://reader036.vdocument.in/reader036/viewer/2022062515/56649d215503460f949f60ab/html5/thumbnails/9.jpg)
Compensation Fund
EligiblePopulation
“Strategic” Fund Allocation
Market Rate %(Salary Range)
Bas
e In
c R
eco
mm
end
atio
n P
erce
nt
Illustrative
Low
HighLow
Market Correction Fund
Base Increase Fund
![Page 10: SRD Consulting Services, LLC Compensation Planning on a Shoestring “When Excel Spreadsheets Are The Only Option”](https://reader036.vdocument.in/reader036/viewer/2022062515/56649d215503460f949f60ab/html5/thumbnails/10.jpg)
“Strategic” Fund Allocation
EXCEL DEMONSTRATION
![Page 11: SRD Consulting Services, LLC Compensation Planning on a Shoestring “When Excel Spreadsheets Are The Only Option”](https://reader036.vdocument.in/reader036/viewer/2022062515/56649d215503460f949f60ab/html5/thumbnails/11.jpg)
Fund Allocation
A PowerPoint voice-over presentation that explains how to use the calculator and a sample Fund Allocation Calculator can be found on the Resources page of the following website.
www.srdconsultingservices.com
![Page 12: SRD Consulting Services, LLC Compensation Planning on a Shoestring “When Excel Spreadsheets Are The Only Option”](https://reader036.vdocument.in/reader036/viewer/2022062515/56649d215503460f949f60ab/html5/thumbnails/12.jpg)
Data sources for compensation planning…
HR Information
Systems
Global Directory
Employee Data:• Name• Level/Grade• Salary• Hire Date• Prior Comp Treatment• Education• Performance Rating• Etc.
Organizational Data:• Name• Department• Location• Phone Number• e-Mail Address• Supervisor• Direct Reports• Etc.
![Page 13: SRD Consulting Services, LLC Compensation Planning on a Shoestring “When Excel Spreadsheets Are The Only Option”](https://reader036.vdocument.in/reader036/viewer/2022062515/56649d215503460f949f60ab/html5/thumbnails/13.jpg)
Planning Hierarchy…
Top of Hierarchy
Tactical Decisions• Identification of planners &
planning groups• Number of planning cycles
(e.g., roll-ups)• Timeline for each step of
the planning process.• Process for matrix
reporting relationships
3rd Planning Cycle
2nd Planning Cycle
1st Planning Cycle
Summary Worksheet
![Page 14: SRD Consulting Services, LLC Compensation Planning on a Shoestring “When Excel Spreadsheets Are The Only Option”](https://reader036.vdocument.in/reader036/viewer/2022062515/56649d215503460f949f60ab/html5/thumbnails/14.jpg)
Because planning worksheets may contain employees with salaries in different currencies and size of the budget can vary by country, planning as a percent of the budget can be helpful.
Initial Employee Recommendations
A “PAR” value of 100% can be used to standardize the initial employee recommendation to represent the country’s approved budget.
![Page 15: SRD Consulting Services, LLC Compensation Planning on a Shoestring “When Excel Spreadsheets Are The Only Option”](https://reader036.vdocument.in/reader036/viewer/2022062515/56649d215503460f949f60ab/html5/thumbnails/15.jpg)
By adjusting the PAR %, Leaders can focus on the relative contribution of each employee...
and the recommended merit increase percent is adjusted accordingly.
5% Merit Rec x 85% PAR = 4.3% Inc.
Initial Employee Recommendations
![Page 16: SRD Consulting Services, LLC Compensation Planning on a Shoestring “When Excel Spreadsheets Are The Only Option”](https://reader036.vdocument.in/reader036/viewer/2022062515/56649d215503460f949f60ab/html5/thumbnails/16.jpg)
EXCEL DEMONSTRATION
![Page 17: SRD Consulting Services, LLC Compensation Planning on a Shoestring “When Excel Spreadsheets Are The Only Option”](https://reader036.vdocument.in/reader036/viewer/2022062515/56649d215503460f949f60ab/html5/thumbnails/17.jpg)
Analytics
“What gets measured gets done.”
“Not everything that counts can be counted, and not everything that can be counted counts.”
“Without a standard, there is no logical basis for making a decision or taking action,”
Peter Drucker, Tom Peters, Edwards Deming, Lord Kelvin, Joseph Juran and others..
![Page 18: SRD Consulting Services, LLC Compensation Planning on a Shoestring “When Excel Spreadsheets Are The Only Option”](https://reader036.vdocument.in/reader036/viewer/2022062515/56649d215503460f949f60ab/html5/thumbnails/18.jpg)
EXCEL DEMONSTRATION
![Page 19: SRD Consulting Services, LLC Compensation Planning on a Shoestring “When Excel Spreadsheets Are The Only Option”](https://reader036.vdocument.in/reader036/viewer/2022062515/56649d215503460f949f60ab/html5/thumbnails/19.jpg)
Excel Data Analysis Tools “Pivot Table”
Here are some example uses of pivot tables:
• Summarizing data like finding the average sales for each region for each product from a product sales data table.
• Listing unique values in any column of a table• Creating a pivot report with sub-totals and custom formats• Making a dynamic pivot chart• Filtering, sorting, drilling-down data in the reports without writing one formula or
macro.• Transposing data – i.e. moving rows to columns or columns to rows.• Linking data sources outside excel and be able to make pivot reports out of such
data.
http://www.youtube.com/watch?v=0ZyGcSdsaNo
http://www.youtube.com/watch?v=eax0HTsieZA
Below are Youtube tutorial videos on how to create a Pivot Table:
![Page 20: SRD Consulting Services, LLC Compensation Planning on a Shoestring “When Excel Spreadsheets Are The Only Option”](https://reader036.vdocument.in/reader036/viewer/2022062515/56649d215503460f949f60ab/html5/thumbnails/20.jpg)
EXCEL DEMONSTRATION
![Page 21: SRD Consulting Services, LLC Compensation Planning on a Shoestring “When Excel Spreadsheets Are The Only Option”](https://reader036.vdocument.in/reader036/viewer/2022062515/56649d215503460f949f60ab/html5/thumbnails/21.jpg)
File Distribution
Considerations…– Ease of Access– Security– Cost
• Shared Drives
• The “Cloud”
• Custom Websites Intranet Internet
![Page 22: SRD Consulting Services, LLC Compensation Planning on a Shoestring “When Excel Spreadsheets Are The Only Option”](https://reader036.vdocument.in/reader036/viewer/2022062515/56649d215503460f949f60ab/html5/thumbnails/22.jpg)
Sharepoint Office 365
![Page 23: SRD Consulting Services, LLC Compensation Planning on a Shoestring “When Excel Spreadsheets Are The Only Option”](https://reader036.vdocument.in/reader036/viewer/2022062515/56649d215503460f949f60ab/html5/thumbnails/23.jpg)
Communicating Salary Changes
According to a study conducted by the human resources consulting firm, Watson Wyatt Worldwide, organizations that communicated most effectively with employees experienced a return to shareholders of 26%.
Employers who attempt to "cut corners" with regard to pay decisions generally are rewarded with a disgruntled workforce. Joan M. Rennekamp, SPHR
![Page 24: SRD Consulting Services, LLC Compensation Planning on a Shoestring “When Excel Spreadsheets Are The Only Option”](https://reader036.vdocument.in/reader036/viewer/2022062515/56649d215503460f949f60ab/html5/thumbnails/24.jpg)
Compensation Statement
![Page 25: SRD Consulting Services, LLC Compensation Planning on a Shoestring “When Excel Spreadsheets Are The Only Option”](https://reader036.vdocument.in/reader036/viewer/2022062515/56649d215503460f949f60ab/html5/thumbnails/25.jpg)
Compensation Statement
![Page 26: SRD Consulting Services, LLC Compensation Planning on a Shoestring “When Excel Spreadsheets Are The Only Option”](https://reader036.vdocument.in/reader036/viewer/2022062515/56649d215503460f949f60ab/html5/thumbnails/26.jpg)
• Contains a compensation statement for each employee for which the Leader has responsibility for communicating the compensation change.
• Additionally, contains “Talking Points” and a summary worksheet detailing all compensation information in a single worksheet.
• Individual compensation statements can be printed or saved to a separate file.
• Compensation statement template can be translated to local language.
“Group” Compensation Statements
![Page 27: SRD Consulting Services, LLC Compensation Planning on a Shoestring “When Excel Spreadsheets Are The Only Option”](https://reader036.vdocument.in/reader036/viewer/2022062515/56649d215503460f949f60ab/html5/thumbnails/27.jpg)
EXCEL DEMONSTRATION
![Page 28: SRD Consulting Services, LLC Compensation Planning on a Shoestring “When Excel Spreadsheets Are The Only Option”](https://reader036.vdocument.in/reader036/viewer/2022062515/56649d215503460f949f60ab/html5/thumbnails/28.jpg)
• A macro is a series of commands and functions that are stored in a Microsoft Visual Basic module and can be run whenever you need to perform the task. For example, if you often enter long text strings in cells, you can create a macro to format those cells so that the text wraps.
“Macros”
![Page 29: SRD Consulting Services, LLC Compensation Planning on a Shoestring “When Excel Spreadsheets Are The Only Option”](https://reader036.vdocument.in/reader036/viewer/2022062515/56649d215503460f949f60ab/html5/thumbnails/29.jpg)
EXCEL DEMONSTRATION
![Page 30: SRD Consulting Services, LLC Compensation Planning on a Shoestring “When Excel Spreadsheets Are The Only Option”](https://reader036.vdocument.in/reader036/viewer/2022062515/56649d215503460f949f60ab/html5/thumbnails/30.jpg)
• Search Microsoft HELP• Search the Internet for Solutions• Call a Friend…• Excel Message Board
Developing Excel Skills
“Mr. Excel”Bill Jelen
http://www.mrexcel.com/
Subscribe to receive a daily 2-minute
podcast about Excel.
![Page 31: SRD Consulting Services, LLC Compensation Planning on a Shoestring “When Excel Spreadsheets Are The Only Option”](https://reader036.vdocument.in/reader036/viewer/2022062515/56649d215503460f949f60ab/html5/thumbnails/31.jpg)
Questions