In this economy, the idea of compensation can be harsh when it turns on the underlying philosophy of "Just be glad you have a pay check."
A step above that sledge-hammer concept, best used by bullies, is the quid-pro-quo, labor for money, approach, which has the advantage of at least being honest, although it is rather a blunt instrument in human resources.
Andy Rosen, who heads ORC Worldwide's compensation consulting practice, thinks the best approaches tie compensation to career development. "Compensation management is a talent management tool," he said. "It's not just a quid pro quo." (ORC is a big human resources consulting company -- headquarters in NYC, although Andy works at a suburban Philadelphia office.)
Over lunch (he had the Mediterranean wrap), he explained the idea: Companies sort jobs into "job families" and then carefully consider what it takes to rise from a step one grade to a step two and so forth within each family. What are the analytic skills required? What responsibilities are undertaken? By carefully delineating these requirements including soft skills, the employee can talk with supervisors about getting the skills and assignments to move up -- both in responsibility and in pay.
"Organizations that use career-based compensation programs tend to have better integration between growth and development and compensation," he said.
A key component is to understand compensation as part of the general strategy of the company. Is the goal to reward top performers at the risk of alienating the rest of the staff? How competitive can a company be, or should a company be, in the marketplace? Does the compensation structure fit in with the general "vibe" of the company?
In general, he said, companies are looking at a concept called "total rewards." Beyond pay and benefits, the "total rewards" concept looks at other factors that create a "magnet" company -- the kind of company that attracts good employees and keeps them. Other elements are the general environment, the proficiency of supervisors and the ability of the company to both challenge and recognize its employees in a meaningful way.
Whatever the philosophy, "the most important part is implementation, which is all about communication," he said. It's better to have a poorly designed plan implemented and communicated well than to have a beautiful plan thrown out into corporate abyss without support.
Every day for 60 days, Inquirer staff writer Jane M. Von Bergen profiled someone from the ranks of the region’s unemployed.
-
Cold winter for the jobless
- Ranks of long-term jobless are growing.
-
How a printing plant failed
- Big gambles and bad decisions, oil prices and credit crises, even a New Zealand tycoon: All played a role in Downingtown.
- Jobless60
- February
- January
- December 2011
- November 2011
- October 2011
- September 2011
- August 2011
- July 2011
- June 2011
- May 2011
- April 2011
- March 2011
- February 2011
- January 2011
- December 2010
- November 2010
- October 2010
- September 2010
- August 2010
- July 2010
- June 2010
- May 2010
- April 2010
- March 2010
- February 2010
- December 2009
- November 2009
- October 2009
- September 2009
- August 2009
- July 2009
- June 2009
- May 2009
- April 2009
- News | Sports | Business | What's Happening | Restaurants & Food | Entertainment | Living | Marketplace | Jobs
