Michael J. Willis & Associates
|
|
|
Executive Briefing
Fall 2004
Susan S. Palé, Principal Michael J. Willis, Ed.D., Principal
· Welcome · Slightly Higher Salary Increases Planned for 2005 · Feature Article: Developing an Effective Evaluation System for Your Organization · Conference Board Consumer Confidence Index Continues to Decline · Lessons Learned from “The Apprentice” · About Us WELCOME Welcome to the Fall, 2004 issue of Executive Briefing. We hope you enjoyed summer and were able to spend some relaxing time with family and friends. As always, our goal is to provide you with news on topics of interest for human resource and business professionals. We hope you continue to find the information, hints, and tips in this newsletter helpful. We appreciate all the feedback we’ve received and welcome your suggestions for future topics to address. Send us a quick email or give us a call. We’d love to hear from you.
SLIGHTLY HIGHER SALARY INCREASES PLANNED FOR 2005It’s fall again, and the large compensation consulting firms and independent research organizations are all publishing their salary increase and salary structure movement projections for 2005 as well as their summaries of 2004 salary increase activity. The Economic Research Institute (ERI), an independent research organization, conducts an annual survey of salary increases and salary structure movement across industries and geographic areas. Their projections call for salary increases of 2.8% for general employees and 3.1% for professional employees in firms with fewer than 2000 employees. In larger firms, projected increases are 3.0% for general employees and 3.3% for professionals. Salary structure movement is projected to be between 2.3% and 2.4% in firms with fewer than 2000 employees, and between 2.5 % and 2.7% in larger firms. World at Work, a not-for-profit professional association, reports in their thirty-first annual Salary Budget Survey that 87% of employees received some type of salary increase in 2004, up from 83% in 2003. The average increase was 3.5%, which fell short of the projected 3.7% forecast late in 2003. Projected increase figures for 2005 are 3.7%.
DEVELOPING AN EFFECTIVE JOB EVALUATION SYSTEM FOR YOUR ORGANIZATION As we look at the changing landscape of Central New York jobs and employers, we see fewer and fewer large organizations. Instead, new business growth and business expansion occurs in small and mid-sized organizations with less than 500 employees. As these smaller organizations grow and evolve, there is often an increasing need to develop an infrastructure of human resource systems and processes. Because compensation is so visible and important, a job evaluation system is frequently an early emerging need. If your organization has reached the point where development of a job evaluation system is needed, there are five types of job evaluation systems you may want to research and consider: Market Pricing is the most straightforward of all the evaluation systems. In a market-priced system, jobs are evaluated primarily in terms of their value compared with a defined external market. For market pricing to be successful, jobs must be clearly defined and a suitable external market selected for comparison. Pay data from external sources can be collected via a customized salary survey or use of publicly available and fee-based surveys. Access to high-quality survey data that will remain relatively stable over time is essential. Whole Job Ranking, or “slotting”, is most often used in conjunction with market pricing. Many organizations have jobs that are unique to the organization, which makes external market pricing difficult. Whole job ranking determines the value of a position by comparing it against other positions in the organization, using such criteria as complexity of job duties, required skills and knowledge, and value to the organization. Whole job ranking is essentially a subjective process, which may make communication and employee understanding a challenge. Combining whole job ranking with market pricing helps to objectify the process. Classification is frequently used in organizations where clearly defined job families exist. In the classification system, written classification charts are prepared that define the continuum of jobs in a career progression (e. g. engineering, accounting). Jobs are then ranked relative to others in the same family and slotted into appropriate levels. Once families and levels are determined, external market data is gathered for as many families and levels as possible, and a salary structure is developed using this data. Factor Comparison is a more complex evaluation system that measures and compares job content in terms of several specific factors (e. g. skill, effort, responsibility, working conditions). When factor comparison is employed, each job in the organization is ranked against every other job in the organization with respect to each factor. The result is a hierarchy of all jobs. Each factor is then weighted and corresponding points assigned for each factor to arrive at a total point calculation for each job. This evaluation system works best in small and mid-sized organizations that do not have a large number of disparate jobs. Point Factor evaluation systems use compensable factors and a scale of defined degrees within each factor to determine the relative value of jobs. Most point factor plans contain between 4 and 7 distinct compensable factors. Typical factors may be knowledge and skills, complexity, judgment, and education. For point factor plans to be successful, compensable factors must be selected that are relevant and valuable to the organization. Because of their complexity, point factor plans are frequently custom-designed for use.
CONFERENCE BOARD CONSUMER CONFIDENCE INDEX CONTINUES TO DECLINE The Conference Board, a private research group, reported that the Consumer Confidence Index declined again in October. The Index now stands at 92.8, down from 96.7 in September. The baseline index for measurement is 1985=100. This monthly survey is based on a representative sample of 5,000 U.S. households. Consumers surveyed in October were more likely to anticipate worsened economic conditions, and expected fewer jobs to become available in the coming months than those surveyed in September. The percentage of consumers who expected their incomes to improve during the next few months also dipped to 18.4% in October from 20.0% in September. Check out the full index monthly at www.conference-board.org. November index figures are due for release on November 30.
LESSONS LEARNED FROM “THE APPRENTICE”We’re big fans of “The Apprentice” and enjoy the management and leadership issues raised in each weekly episode. Now, each Friday the American Management Association provides an online analysis of the previous day’s episode conducted by representatives of its Apprentice Advisory Council. Topics include “How to Lead with Passion”, “How to Build a Cohesive Team”, and “How to Earn Respect as a Leader”. You can check out the full list and also sign up for a weekly email update by visiting www.amanet.org/events/apprentice/weekly.
LINKS OF INTEREST The Internet is an excellent source of information on any topic one can imagine. Unfortunately, not all the available information is accurate, truthful, or current. There is nothing more important than our health and it is vitally important to seek information from only unbiased and authoritative sources. The following links can connect you and your employees to trusted information. Please share these links with your co-workers. · National Library of Medicine is part of the US government’s National Institutes of Health and serves as the premiere clearinghouse for medical information. o Medline Plus is a patient-friendly source of information about medications, medical conditions, tests, and surgical procedures. There are interactive tutorials, as well as, a medical encyclopedia and dictionary. o NIHSeniorHealth.gov is a great source of healthcare information for older Americans. · The National Women’s Health Information Center of the US Department of Health and Human Services provides authoritative information on issues relating to women’s health issues. · The Mayo Clinic of Rochester, MN is a one-stop resource for health and wellness information with tutorials, newsletters, health decision guides, and more … · Suicide is the 11th leading cause of death in the US with nearly 30,000 completed suicides annually. The NYS Office of Mental Health produced the Suicide Prevention Education Awareness Kit (SPEAK). SPEAK “is an information kit for the public, health care providers and educators to help them understand the terrible frequency and toll of suicide, and to discover ways and methods to aid in preventing it.” · The Harvard Center for Cancer Prevention at the Harvard School of Public Health has created a quick, online assessment of your risk of cancer, diabetes, heart disease, stroke, and osteoporosis. Knowing your risk factors is the first step towards prevention.
Polaris Associates specializes in the design and development of human resource systems and processes for small and mid-sized businesses. We work closely with our client organizations to assess needs and develop customized solutions to business challenges. Our consulting services and training programs are designed and developed to provide value and results. Our services include: · Compensation program design and development · Performance management and appraisal systems · Training and development needs assessment and management · Competency-based interviewing and selection · Career development and executive/leadership coaching · Career transition (including outplacement & partner relocation) · HR On-Call telephone consulting · Operations and training manual development
First-line supervisors can make or break an organization. They are often “stuck in the middle” of the interests of the company and the employee. Supervisors are under increasing pressure to increase productivity and lower costs, and at the same time must accommodate the needs of an increasingly diverse work force. Do your supervisors possess the skills and knowledge required to function effectively in this difficult role?
Recent projects include: · Design and development of a compensation structure for a mid-sized manufacturer · Development of career and promotional paths for a high-tech firm · Development of a strategic plan for a local nonprofit organization · Executive/Leadership coaching for senior managers at both for-profit and nonprofit organizations to develop leadership and interpersonal skills · Retainer agreements with several local attorneys and law firms to perform labor market research and serve as expert witness in compensation-related matters
ABOUT US Dr. Michael J. Willis is an experienced consultant, trainer, professional counselor, and business executive specializing in career management services, compensation and labor market research, competency and skill assessment, executive coaching, and training. He is a graduate of Syracuse University and holds a Bachelor of Science degree in Management/ Marketing, a Master of Science degree in Vocational Rehabilitation Counseling, and a Doctor of Education degree in Adult Studies with emphasis in professional development. Susan Palé is an experienced human resource executive with over 20 years experience in the financial services industry. She has extensive experience in all areas of human resources, including compensation, performance management and appraisal, training and management development, organization development, and staffing and selection. She holds a Bachelor of Arts degree from Arizona State University and a Master of Science degree from Rochester Institute of Technology where her areas of specialization were Organization Development and Instructional Technology.
CONTACT INFORMATION Polaris Associates 2833 East Genesee Street Syracuse, New York 13224 315.446.6093 · Dr. Michael J. Willis, Principal · Susan S. Palé, Principal |
|
|
