Handbook of Compensation Management

Matthew J. DeLuca


Bibliographic record and links to related information available from the Library of Congress catalog
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Chapter 1 ESTABLISHING A WAGE AND SALARY PROGRAM
     Building a Wage and Salary Program
     Auditing and Reviewing the Current Wage and Salary
     Program
     Building an Information Base
     Job Description Compilation
     Current Issues and Concerns
     Planning for the Future
     Defining the Job Description Process
     Determining the Organization's Pay Policy
     Developing Wage and Salary Administration Program
     Policies and Procedures
     Developing a Draft Document
     Creating a Compensation Committee
     Providing an Inventory of Job Descriptions to Use in the
     Job Evaluation Process
     Evaluating Jobs Based on Job Descriptions for Pay
             Purposes
     Determining the Appropriate Method of Job Evaluation
     Qualitative Methods of Job Evaluation
     Quantitative Methods of Job Evaluation
     Building the Pay Structure
     Designing Pay Ranges
     Developing Grades (Classes)
     Determining Internal and External Equity
     Creating a Wage and Salary Budget
     Implementing an Ongoing System of Standardized
       Procedures to Keep Program Current
     Providing a Manual for the Program to Ensure
     Organization-Wide Understanding and Compliance
     Promoting Organization-Wide Communication and
        Support to Ensure Program Effectiveness
     Discuss the Organization's Goals with Senior
        Management on an Ongoing Basis
     Develop Relationships with Employees by Keeping
        Them Informed
     Train All Employees to Understand Pay Practices
     Develop Relationships Outside the Organization to
     Promote Staff Growth

     Auditing and Reviewing the Program on a Regular Basis
        to Ensure Effectiveness
     Summary

Chapter 2     HOW TO ANALYZE JOBS TO DETERMINE PAY RATES
     Collecting, Documenting, and Analyzing Data for Job Analysis
     Five Essential Skills of the Job Analyst
     How to Use Job Analysis for Functions Other Than Wage
       and Salary Administration
     Using Job Analysis in Personnel/Human Resource
       Planning
     Using Job Analysis for Recruitment and Staffing
     Using Job Analysis for Performance Management
     Using Job Analysis for Employee Training and
        Development
     Complying with the Law to Ensure Fair
       Employment Practices
     Planning the Job Analysis Program
     How to Use the Functional Job Analysis (FJA) Method
        A Task Orientation
     The Scales Themselves: A Brief Explanation
     How to Use the Position Analysis Questionnaire
     Collecting Data for the Job Analysis Program
     How to Select Job Content Experts
     Using Questionnaires, Interviews, and Observation in
          Job Analysis
     Analyzing the Data
          Ranking the Activities by Frequency and Criticality
     Grouping Activities into Major Tasks
     Listing the Requirements of the Job
     Defining the Job Context from Data Collected
     Reviewing the Completed Job Analysis
     Summary

Chapter 3 CREATING JOB DESCRIPTIONS TO FACILITATE
          WAGE AND SALARY EVALUATIONS
     Determining When to Prepare a Job Description
     Determining Who Should Prepare the Job Description
     How to Fill Out the Job Description Form
     Job Summary
     Job Responsibilities
     Steps in the Job Description Process
     Determine the Method of Collecting Data
     Identify the Appropriate Incumbent
     Obtain Data for Job Descriptions Through Interviews
     How to Use the Questionnaires to Enhance the
     Interview Process
     Ask Incumbent to Review the Document for Accuracy
     Rewrite the Document Based on the Incumbent's
     Comments
     Obtain Necessary Approval for the Document
     Provide a Database Library
              Summary

Chapter 4 DESIGNING A STAFF BUDGET PROGRAM
     Defining Basic Terms
     Implementing a Wage and Salary Budget
     Distributing Budget Worksheets and Instructions
     The Annual Staff Plan
     Departmental Listing, by Employee (Schedule A)
     Annual Staff Plan Summary (Schedule B)
     Salary and Staff Recap (Schedule C)
            Other Forms
     Conducting Training Sessions
     Following Up with Assistance and Advice to Staff
     Completing the Budget
     Other Budget Issues
     Impact of Anniversary Date Increases on Salary
       Expenses
     Impact of Staff Changes on Salary Expenses

Chapter 5 AUDITING AND REVIEWING THE WAGE AND
     SALARY PROGRAM FOR OVERALL
     EFFECTIVENESS
     Performing the Wage and Salary Audit
     Determining If Budget Guidelines Are Being Met
     Comparing Budgeted and Actual Individual Salary
     Increases
     Comparing Budgeted and Actual Aggregate Expenses
     Recognizing Legal Discrimination
     Recognizing Illegal Discrimination
     Monitoring External Markets to Ensure Fair Pay
     Practices
     Reviewing the Organization's Current Wage and Salary
         Program
     Using the Human Resource Information System
     (HRIS) for Wage and Salary Administration
        Audits
              Summary

Chapter 6 USING THE PERFORMANCE APPRAISAL
     PROCESS TO DETERMINE WAGE AND
     SALARY CHANGES
     Developing a Performance Appraisal System
     Using Performance Appraisal for Various Purposes
     Planning a Performance Appraisal System
     Avoiding Potential Problems with Performance Appraisals
        Inherent Conflicts
     Avoiding Organizational Problems with Performance Appraisals
     Designing Forms for the Performance Appraisal System
     Designing the Form Using Performer-Oriented Approach
          Using Behavioral Approaches for Performance Appraisal
          Using Results-Oriented Approaches for Performance
             Appraisal
     Selecting the 'Right' Form
     Rating Errors in the System
     Designing a Rater Training Program
     Avoiding Legal Problems in the Performance Appraisal
              Process
              Summary

Chapter 7 MAKING INCENTIVES PART OF THE WAGE AND
        SALARY PROGRAM
     Identifying the Key Components of a Successful
     Incentive Program
     Implementing Specific Types of Incentive Programs
     Offering Long-Term Incentives to Motivate Employees
     Offering Short-Term Incentives to Motivate
     Employees
     Awarding Discretionary Incentives Based on
     'Suggestion Systems"
     Choosing Different Types of Incentive Payments
     Awarding Cash Payments as an Incentive
     Awarding Stock/Options as an Incentive
     Awarding Prizes as an Incentive
     A Word About Intrinsic Rewards
     Negative Incentives
         Using a Two-Tier Pay Program
     How Severance Pay Can Be Used as an Incentive
     How to Build an Incentive Plan
     Ten Steps to Implementing an Incentive Program
     How to Effectively Communicate Your Program
     Benefits and Perquisites as Incentives
     Developing an Incentives Program: Case Study
     Summary

Chapter 8 STAFFING AND MANAGING THE WAGE AND
     SALARY ADMINISTRATION UNIT
     Determining the Role and Size of Compensation Within
          the Human Resources Function
     Determining Staff Size Within Larger Organizations
         (2,500 or More Employees)
     Determining Staff Size Within Smaller Organizations
         (Fewer Than 2,500 Employees)
     Outsourcing for Assistance and Support
     How to Staff the Wage and Salary Administration Unit
     How to Manage the Wage and Salary Administration Unit
     How to Centralize the Wage and Salary Administration Function
     How to Decentralize the Wage and Salary Administration Function
     Managing the Wage and Salary Function in the Smaller Organization
              Summary

Chapter 9 HOW TO DEVELOP WAGE AND SALARY SURVEYS
     TO DETERMINE PAY POLICIES
     Developing the Wage/Salary Survey
     Preparing for the Survey
     Conducting the Survey
     Compiling, Analyzing, and Distributing the Results
     Using Consultants to Conduct Salary Surveys
     Drafting the Consultant's Contract
     How to Use Other Survey Methods
     Conducting Telephone Surveys
     Using Industry-Specific Compensation Surveys
     Using Government Surveys
     Obtaining Information from Vendors
     Exploring Alternative Sources of Information
     Participation of Wage and Salary Professionals in Surveys
     Participating in Vendor-Supported Surveys
     Participating in Organizational Surveys
          Summary

Chapter 10 HOW PAYROLL AND THE WAGE AND SALARY 
       ADMINISTRATION FUNCTION WORK
       TOGETHER TO IMPLEMENT PAY DECISIONS
     Working with Payroll to Make Sure New Employees Are
       Paid on Time and Correctly

     Providing the Information Needed for an Employee to
              Be Paid
     Determining an Employee's Starting Date
     Establishing Salary Records
     Verifying Payroll Records for Accuracy
     Working with Payroll to Process Salary Actions
     Implementing Pay Increases
     Processing Transfers
     Processing Promotions
     Working with Payroll on Critical Aspects of the Routine
          Pay Period
     Review Pay Frequency on a Regular Basis
     Determine the Most Practical Payday
     Determine the Number of Hours in a Workweek
     Determine Deductions
     Auditing Payroll to Ensure Proper Implementation of
         Wage and Salary Actions
     Legal Issues
     Fair Labor Standards Act
     Equal Pay Act
              Summary

Chapter 11 COMPLYING WITH THE LAW ON PAY-RELATED ISSUES
     The Civil Rights Act of 1991
     The Americans with Disabilities Act
     Defining the Term Disabled
     Major ADA Terms to Keep in Mind
     Fair Labor Standards Act of 1938
     The Equal Pay Act of 1963
     Title VII of the Civil Rights Act of 1964, as Amended
     Employers Covered Under Title VII
     Pregnancy Discrimination Act of 1978
     The Age Discrimination in Employment Act of 1967
     The Tax Reform Act of 1986
     Executive Order 11246
     State and Local Laws and Regulations
              Summary

Chapter 12 AUTOMATING THE WAGE AND SALARY
       ADMINISTRATION FUNCTION TO INCREASE EFFICIENCY
     The Role of the Computer in Wage and Salary
     Administration
     Analyzing Your Program to Determine the Need for an
          Automated System
     Eight Steps to Implementing Change
     Performing a Gap Analysis
     Creating an Environment Conducive to Change
     Establishing the Change Relationship
     Diagnosing the Problems of the Current System
     Examining Alternatives and Goals
     Implementing Action
     Generalizing and Stabilizing Change
     Terminating the Change Relationship and Evaluating
            the Project
     Analyzing the Impact of Change on Other Units in the
     Organization
     How to Manage a Project from Idea to Implementation
     Designing Systems Internally
     Drafting the Contract for the Automation Project
     Designing Systems Externally
     Requesting Proposals from Outside Vendors
     Processing and Synthesizing the Information
     Received to Determine the Feasibility of the
     Project
     Selecting the Appropriate Vendor
     Selecting the Appropriate System
     Automation Details
     Defining Computer Elements
     Considering Departmental, Organizational, and
          Personnel/Human Resource Staff Makeup
     Hardware Alternatives
     Software Considerations
     Storage Capacity
     Security Considerations
     The Outsourcing Alternative
       Summary

Chapter 13 FUTURE OF THE WAGE AND SALARY ADMINISTRATION FUNCTION
     Total Compensation Approach
     Direct Pay for Performance
     Variable Pay
     Incentives
     Performance Management
     Consideration for the Smaller Organization
     The Consultant/Internal Customer Service Approach
     Legal Ramifications
     Summary

Appendix A WAGE AND SALARY ADMINISTRATION
          PROGRAM REVIEW
Appendix B WAGE AND SALARY ADMINISTRATION POLICY
         AND PROCEDURES-DRAFT DOCUMENT
Appendix C POSITION ANALYSIS QUESTIONNAIRE
Appendix D AUDIT AND REVIEW WORKSHEET
Appendix E SAMPLE PERFORMANCE APPRAISAL USING
        GRAPHIC RATING SCALE
Appendix F SAMPLE PERFORMANCE APPRAISAL USING
        GRAPHIC RATING SCALE
Appendix G RESULTS/OUTCOME-BASED PERFORMANCE
        APPRAISAL
Appendix H WAGE AND SALARY SURVEY