Matthew J. DeLuca
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