HR Pulse - Fall 2007 - (Page 60)

60 HR Pulse Fall 2007 ment your action for later reference. By following a standardized process, you improve your chances of making the best compensation decision. A good template to follow consists of just 4 components: Recommendation You only need a single sentence to state your recommendation. For most managers, this is all they care about, so why not put it up front as the first thing you say. If they disagree or want more information, they can proceed to the next section of your recommendation. A sample statement might be: “We recommend $10.50 as a rate to pay Jane Doe as Bifurcated Recombination Assistant.” Typically, you would complete the recommendation section last, as you need to work through the steps below to determine the offer you are going to make. Background Certain background information should be stated. You should start with a simple paragraph concerning the subject of your offer. This paragraph should include a summary of the individual’s experience and current pay (if known). Another short paragraph should address the pay range for the job in question. If the employee is currently on your staff, you should state the current position and pay range as well. After you have presented the above information, you can then address the rationale for your recommended offer. A comprehensive approach would be to lay out all of your options, select the best one, and explain your choice. A sample recommendation for a promotion might look like this: In the case of promotions, we typically offer the greater of the following tests, subject to internal equity. Here are some options we considered: • $10.50, which is a 5% increase over this employee’s current rate of pay, or • $10.25, which is the rate we would pay an outside applicant for this employee’s years of experience for this job, or • A rate in the range of $10.25 to $10.75, based on internal equity. We recommend $10.50, since this will follow our standard promotional increase practice and it falls within an acceptable range of pay for our existing employees in this same job. Equity Check You should always check the pay rates and experience of staff already in the job for which your applicant is being considered. It helps to Salary Range 10 11 12 13 14 15 1-Year Minimum Experience $8.00 $8.24 $8.40 $8.65 $8.82 $9.08 $9.26 $9.54 $9.72 $10.02 $10.21 $10.52 2-Years Experience $8.48 $8.90 $9.35 $9.82 $10.31 $10.82 3-Years Experience $8.72 $9.16 $9.61 $10.09 $10.60 $11.13 have an HRIS system in which you can log and easily retrieve experience data. A typical statement could be: We have 8 employees who are currently in this position and who have approximately the same experience. They are paid in the range of $10.25 to $10.75 per hour. Our recommended offer of $10.50 will rank this employee near the middle of this group. We therefore believe that this offer will be equitable. Reference It is a good idea to reference policy to support your recommendations. The policy you use may be straight out of your human resource policy manual. It could also be a memo or a separate compensation policy you might have created for administrative purposes. You only need to list the name of the policy in this section. Find It Again You may find it useful to save your compensation recommendations and decisions in a common electronic folder for reference purposes. A folder labeled “Compensation Offers” with a subfolder entitled “Compensation Offers yyyy” will help keep your collection together and grouped chronologically. Titling your files appropriately can help you find them later. This is important when you are faced with a similar situation and you want to propose a pay rate in alignment with a similar case. An example file name might be “Compensation –Bifurcated Recombination Assistant—Doe, Jane.” Your computer’s operating system could easily perform a key word search if needed. Consistency Is the Goal These guidelines will help you administer pay in a fair and equitable manner. By following a standardized methodology to prepare your offer, and by maintaining a library of previous pay decisions, you can be assured of maintaining a more consistent salary administration program. n Alex Wade is Director of Compensation and Benefits for Yuma Regional Medical Center of Yuma, Arizona. He holds a BBA and an MBA from the University of Mississippi, as well as a Fellowship in the Life Management Institute. He has over 30 years of experience as a human resource professional for the insurance, banking, and hospital industries. 4-Years 5-Years Experience Experience $8.96 $9.20 $9.41 $9.66 $9.88 $10.14 $10.37 $10.65 $10.89 $11.18 $11.44 $11.74 Midpoint $10.00 $10.50 $11.03 $11.58 $12.16 $12.76 Maximum $12.00 $12.60 $13.23 $13.89 $14.59 $15.32

Table of Contents Feed for the Digital Edition of HR Pulse - Fall 2007

Contents Executive Director’s Letter President’s Message HR Leader Profile: Lisa McDaniel Spotlight on Community Citizenship Culture of Engagement How Transparent Should Healthcare Compensation Be? The Value of Assessment Testing in the Recruitment Process Technology Dramatically Changes FMLA Compliance Creating a Magnetic Culture™ Taking It to the Hill: An Advocacy Update 401(k) / 403(b) Fee Lawsuits – Are You the Next Target? Compensation Offers – A Better Process Find It Again Pulse Points Who, Why and Where Conference Highlights Schedule at a Glance Keynote Speakers Social Events Conference Sponsors Exhibitors Index to Advertisers

HR Pulse - Fall 2007

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