Kenexa top 10 compensation mistakes made by small businesses
•
1 like•887 views
This document discusses the top 10 compensation mistakes made by small businesses. These include not communicating about pay decisions, adjusting pay structures without looking at market pay levels for each job, creating internal inequities, not using proper compensation tools and surveys, focusing on product rather than job responsibilities, having a narrow view of competition, assuming a 3% merit budget is too small, lacking manager training, and poor communication about the compensation system. The tips provided recommend improving communication, understanding market pay for specific jobs, fixing inequities, using appropriate compensation tools and data, focusing on employee contributions, knowing the relevant market, rewarding behaviors creatively, and training managers well.
1 of 35
Download to read offline
More Related Content
Kenexa top 10 compensation mistakes made by small businesses
1. TOP 10 COMPENSATION
MISTAKES MADE BY
SMALL BUSINESSES
Lena Bottos CCP, GRP – Kenexa
Catherine Dovey CCP, SPHR – Compensation Works
To us, business is personal
2. ABOUT US
Lena Bottos CCP, GRP
Catherine Dovey CCP, SPHR
Vice President , Compensation
Principal, Compensation Works
Kenexa
Copyright Kenexa®, 2011 2
Copyright Kenexa®, 2012 2
3. WHY THIS IS
SO
IMPORTANT
Other
costs
Labor
Costs
Copyright Kenexa®, 2011
2012 3
4. HOW SOME
COMP PLANS
WORK…
Copyright Kenexa®, 2011
2012 4
10. MISTAKE #9
Adjusting pay
structures without
looking at pay levels
for each job.
Copyright Kenexa®, 2011 10
Copyright Kenexa®, 2012 10
11. TIP #9
Pay attention to the market
movement of individual jobs
Copyright Kenexa®, 2011
2012 11
12. IT’S MORE THAN
JUST THE
AVERAGES
Making assumptions based on 3% averages
can cause you to miss the market for specific
jobs.
Job Change
Head of Anesthesiology 24%
Banking Operations Manager 22%
Materials Control Manager 14%
Private Label Manager -9%
Health and Safety Manager -10%
Program Manager -13%
Copyright Kenexa®, 2011
2012 12
13. MISTAKE #8
Living by exception.
Creating and
enabling internal
inequity.
Copyright Kenexa®, 2011 13
Copyright Kenexa®, 2012 13
14. TIP #8
Fix the problem, don’t just move
it around.
Copyright Kenexa®, 2011
2012 14
16. TIP #7
Learning how to do it right will
help you expand your skills.
Copyright Kenexa®, 2011
2012 16
17. Poll Question:
I am confident I know all the
technology and software
available to me to help me do
my job best.
•True
•False
18. MISTAKE #6
Not using the proper
tools and assuming
you are paying at
market.
Copyright Kenexa®, 2011 18
Copyright Kenexa®, 2012 18
19. TIP #6
Ask for a price appropriate for
your company size.
Copyright Kenexa®, 2011
2012 19
20. MISTAKE #5
Being cheap –
saving money on
survey data.
Copyright Kenexa®, 2011 20
Copyright Kenexa®, 2012 20
21. RELATIVE
SURVEY
COSTS
Example:
for every $10,000,000 in salary
you spent $10,000 survey costs
= .1% of salary costs
Copyright Kenexa®, 2011
2012 21
22. What companies use free or very
inexpensive survey data?
Copyright Kenexa®, 2011
2012 22
23. TIP #5
Saving dollars on compensation
data or design is an expensive
way to save money.
Copyright Kenexa®, 2011
2012 23
30. TIP #2
Focus on the behaviors you
want to reward and think
outside the box.
Copyright Kenexa®, 2011
2012 30
31. Poll Question:
We have a training program to
train existing and future
managers on the necessary
skills to be good managers.
•True
•True, but not enough
•False
32. MISTAKE #1
Communication.
Communication.
Communication.
Not teaching
managers and
employees how the
system works.
Copyright Kenexa®, 2011 32
Copyright Kenexa®, 2012 32
33. TIP #1
All your work hinges on
managers being able to
communicate the message.
Copyright Kenexa®, 2011
2012 33