5 tips for effective compensation design - the vantage point...5 tips for effective compensation...
TRANSCRIPT
![Page 1: 5 Tips For Effective Compensation Design - The Vantage Point...5 Tips For Effective Compensation Design Facilitator VINCENT CHOW LOGAN HR Connecting the CPR: Career, Performance &](https://reader034.vdocuments.mx/reader034/viewer/2022051903/5ff4a2fe5007680ee854c5da/html5/thumbnails/1.jpg)
5 Tips For Effective Compensation Design
![Page 2: 5 Tips For Effective Compensation Design - The Vantage Point...5 Tips For Effective Compensation Design Facilitator VINCENT CHOW LOGAN HR Connecting the CPR: Career, Performance &](https://reader034.vdocuments.mx/reader034/viewer/2022051903/5ff4a2fe5007680ee854c5da/html5/thumbnails/2.jpg)
Facilitator
VINCENT CHOWLOGAN HR
![Page 3: 5 Tips For Effective Compensation Design - The Vantage Point...5 Tips For Effective Compensation Design Facilitator VINCENT CHOW LOGAN HR Connecting the CPR: Career, Performance &](https://reader034.vdocuments.mx/reader034/viewer/2022051903/5ff4a2fe5007680ee854c5da/html5/thumbnails/3.jpg)
Connecting the CPR: Career, Performance & Rewards
Rewards: a competitive pay structure, aligning with the Career Framework and Performance Process
Career Framework: a solid foundation for pay structure, employee career development/path and setting performance expectation
Performance Process: a robust process to align employees’ goals setting, to focus on personal development and to link with pay
![Page 4: 5 Tips For Effective Compensation Design - The Vantage Point...5 Tips For Effective Compensation Design Facilitator VINCENT CHOW LOGAN HR Connecting the CPR: Career, Performance &](https://reader034.vdocuments.mx/reader034/viewer/2022051903/5ff4a2fe5007680ee854c5da/html5/thumbnails/4.jpg)
Effective Compensation Design
![Page 5: 5 Tips For Effective Compensation Design - The Vantage Point...5 Tips For Effective Compensation Design Facilitator VINCENT CHOW LOGAN HR Connecting the CPR: Career, Performance &](https://reader034.vdocuments.mx/reader034/viewer/2022051903/5ff4a2fe5007680ee854c5da/html5/thumbnails/5.jpg)
- Provides guiding principles for compensation program design- Establishes line-of-sight between organizational goals and compensation
programs- Ensures a consistent approach- “5 Ps”
-Purpose of the compensation programs-Peer / comparison group-Market positioning-Mix/proportion of base and variable pay (if any)-Relationship to Pay for Performance
Clear Compensation Philosophy
![Page 6: 5 Tips For Effective Compensation Design - The Vantage Point...5 Tips For Effective Compensation Design Facilitator VINCENT CHOW LOGAN HR Connecting the CPR: Career, Performance &](https://reader034.vdocuments.mx/reader034/viewer/2022051903/5ff4a2fe5007680ee854c5da/html5/thumbnails/6.jpg)
“What’s Your P Number?”
P50
P75?
The “Right” Market
![Page 7: 5 Tips For Effective Compensation Design - The Vantage Point...5 Tips For Effective Compensation Design Facilitator VINCENT CHOW LOGAN HR Connecting the CPR: Career, Performance &](https://reader034.vdocuments.mx/reader034/viewer/2022051903/5ff4a2fe5007680ee854c5da/html5/thumbnails/7.jpg)
Choose the Right Approach
![Page 8: 5 Tips For Effective Compensation Design - The Vantage Point...5 Tips For Effective Compensation Design Facilitator VINCENT CHOW LOGAN HR Connecting the CPR: Career, Performance &](https://reader034.vdocuments.mx/reader034/viewer/2022051903/5ff4a2fe5007680ee854c5da/html5/thumbnails/8.jpg)
Career Framework / Internal Structure - Example
![Page 9: 5 Tips For Effective Compensation Design - The Vantage Point...5 Tips For Effective Compensation Design Facilitator VINCENT CHOW LOGAN HR Connecting the CPR: Career, Performance &](https://reader034.vdocuments.mx/reader034/viewer/2022051903/5ff4a2fe5007680ee854c5da/html5/thumbnails/9.jpg)
Closed Surveys vs. Open Surveys
![Page 10: 5 Tips For Effective Compensation Design - The Vantage Point...5 Tips For Effective Compensation Design Facilitator VINCENT CHOW LOGAN HR Connecting the CPR: Career, Performance &](https://reader034.vdocuments.mx/reader034/viewer/2022051903/5ff4a2fe5007680ee854c5da/html5/thumbnails/10.jpg)
Credible Design
- Guided by your compensation philosophy, combining internal and external equity
- Link to performance and career progression - Sustainable for maintenance and future growth
![Page 11: 5 Tips For Effective Compensation Design - The Vantage Point...5 Tips For Effective Compensation Design Facilitator VINCENT CHOW LOGAN HR Connecting the CPR: Career, Performance &](https://reader034.vdocuments.mx/reader034/viewer/2022051903/5ff4a2fe5007680ee854c5da/html5/thumbnails/11.jpg)
Salary Range / Structure Design Choices
![Page 12: 5 Tips For Effective Compensation Design - The Vantage Point...5 Tips For Effective Compensation Design Facilitator VINCENT CHOW LOGAN HR Connecting the CPR: Career, Performance &](https://reader034.vdocuments.mx/reader034/viewer/2022051903/5ff4a2fe5007680ee854c5da/html5/thumbnails/12.jpg)
Best Practice: Salary Range Zones - Example
![Page 13: 5 Tips For Effective Compensation Design - The Vantage Point...5 Tips For Effective Compensation Design Facilitator VINCENT CHOW LOGAN HR Connecting the CPR: Career, Performance &](https://reader034.vdocuments.mx/reader034/viewer/2022051903/5ff4a2fe5007680ee854c5da/html5/thumbnails/13.jpg)
Connect to Pay Increase Decisions - Example
Salary Range Zone
Performance Rating (EXAMPLES)
Low Zone Mid Zone High Zone
Top performers
Fully contributing
Needs improvement
![Page 14: 5 Tips For Effective Compensation Design - The Vantage Point...5 Tips For Effective Compensation Design Facilitator VINCENT CHOW LOGAN HR Connecting the CPR: Career, Performance &](https://reader034.vdocuments.mx/reader034/viewer/2022051903/5ff4a2fe5007680ee854c5da/html5/thumbnails/14.jpg)
3 Key Things for Management Training
![Page 15: 5 Tips For Effective Compensation Design - The Vantage Point...5 Tips For Effective Compensation Design Facilitator VINCENT CHOW LOGAN HR Connecting the CPR: Career, Performance &](https://reader034.vdocuments.mx/reader034/viewer/2022051903/5ff4a2fe5007680ee854c5da/html5/thumbnails/15.jpg)
Purposes of Performance Process
e.g. org objectives
and individual
goals alignment,
goal settings, key
focus and
achievements, etc.
e.g. personal
development plan,
career
development plan,
coaching plan,
competency
development, etc.
e.g. performance
ratings that can be
linked to salary
increase or bonus
decisions
Align & Drive
Organization
Performance
Align with
Reward
Develop
People
![Page 16: 5 Tips For Effective Compensation Design - The Vantage Point...5 Tips For Effective Compensation Design Facilitator VINCENT CHOW LOGAN HR Connecting the CPR: Career, Performance &](https://reader034.vdocuments.mx/reader034/viewer/2022051903/5ff4a2fe5007680ee854c5da/html5/thumbnails/16.jpg)
What about performance ratings?
![Page 17: 5 Tips For Effective Compensation Design - The Vantage Point...5 Tips For Effective Compensation Design Facilitator VINCENT CHOW LOGAN HR Connecting the CPR: Career, Performance &](https://reader034.vdocuments.mx/reader034/viewer/2022051903/5ff4a2fe5007680ee854c5da/html5/thumbnails/17.jpg)
Be Real with the Focus of Your Performance Process Design
![Page 18: 5 Tips For Effective Compensation Design - The Vantage Point...5 Tips For Effective Compensation Design Facilitator VINCENT CHOW LOGAN HR Connecting the CPR: Career, Performance &](https://reader034.vdocuments.mx/reader034/viewer/2022051903/5ff4a2fe5007680ee854c5da/html5/thumbnails/18.jpg)
Effective Compensation Design
![Page 20: 5 Tips For Effective Compensation Design - The Vantage Point...5 Tips For Effective Compensation Design Facilitator VINCENT CHOW LOGAN HR Connecting the CPR: Career, Performance &](https://reader034.vdocuments.mx/reader034/viewer/2022051903/5ff4a2fe5007680ee854c5da/html5/thumbnails/20.jpg)