Employee Compensation

So...I've never actually blogged before, and even as I type it, I am thinking how long ago would someone have smacked me for suggesting that the word blog could be used as a verb. I mean let's face it, blogging sounds like something your dog would do. Anyway, getting over my own hang-ups, I figured I would try my hand at bloggery and see if it suits me.

I guess the whole point of this is to just write out something on my mind to share with everyone who has a similar interest, and perhaps you will post comments, good or bad, about my thoughts. As someone new to this, please don't be too harsh. It is my understanding that there are no rules to blogging, and like most creative ventures, there are no bad ideas.

So I just finished up and employee satisfaction survey last week. Overall it went' quite well. When I first started this job and measured employee sat it was about 58%. I now have it holding steady at 80%, and if I really wanted to brag, it is actually at 100% rating their job as satisfied or better. After all, if it is an employee satisfaction survey, do we really need to ask if they are extremely satisfied. I suppose the answer is yes. When I was asked about the difference I described it as such; Ane employee who is extremely satisfied with their job is excited to come to work at least 3 days a week. I don't know if that is the official answer or not, but it works for me! Moving on, the two areas where there was a slight hint of discontent, and by discontent I mean someone marked down Neutral rather than Satisfied or Dissatisfied, where for compensation and praise. I liked to talk about the compensation question today.

Looking at compensation, the question posed whether or not the employee understood how their performance impacted their compensation. I always figured this was an easy one. You come to work and do good, you get paid and keep your job. I know that simplifies it...but isn't that truly the hear t of the matter? To give a little more insight, and I reviewed the same with the team. Everyone on my team got an unexpected bonus this year. The amount of each person's bonus was directly correlated to their performance. I reminded them of this when I told them the amounts a month ago...but I suppose that may have slipped their minds.

As far as their raises go, like most companies, we are frugal. The target for raises was 3%...but there was room for playing. As I said, that was just a target. The higher performers got a little more than the lower performers. I suppose the issue is though, when someone is making $38k per year as an analyst, a 3% raise is about $1140 per year. A 4% raise is $1520. It is less than $400...but a whole percentage point. The business looks at the percentage, but the individual looks at the value. This is a hard area for both groups to see eye to eye on. 

We have a pretty significant rewards and recognition program. We have quarterly and yearly team goals and e have had catered meals, outings, clothing, backpacks, hockey and baseball tickets, food supplies, etc as rewards. These are always based upon the team hitting a performance target. We also have a monthly customer survey contest winner, who gets a gift card. This target and contest is based upon performance.

As a company, we have performed well and improved benefits, including increasing the company contribution to 401k...which, if you participate, if basically another 4.5% of your salary.

Oh...I just purchased a library of CBT materials and told the team I will pay for any certification tests they pass.

After reviewing all of this, I think the most of the team got it...but I believe some people in the back of their minds still are thinking I should do more. I guess it is the challenge of making people understands that compensation is much more than just your bi-weekly pay check. The whole package is important.

Well...thanks for letting me talk about this. I am curious to see what others think about my view of compensation. I am right...wrong...left field. Should we abandon all extraneous compensation programs and just give everyone another $1 per hour.

I look forward to your comments.

Jeff

Comments

[Rich]

Jeff: It sounds like you focus heavily on all sorts of "compensation" which is good. Salary is mostly a de-motivator than motivator. Much research has been done about compensation, and the top considerations for most people is the impact and the importance their work has on the overall organization. Salary falls in place around # 6 on the important list. People want to feel that what they do will make a difference and is appreciated. Don't get me wrong about salary; if the companies in the area pay $20 an hour and you pay $15 that is an issue. Salary must be addressed but only in the overall plan.

What you have posted suggests your reward system does recognize the work people do. That is so much more than many others do. The only add I would have is doing your best to align work with people's passion. Not always easy to do but if you can you may want to consider.

Excellent points! Nice job for a rookie:)

Rich

[Jeff Brooks]

I remember you talking about that information at something recently...maybe a Spin Webinar or something at conference. I would be curious about some further clarification on the idea that salary is #6. For instance, is that among all people surveyed or among certain groups. The reason I ask is because I could see different answers to that question depending on your position and salary range. For instance, someone making $15 an hour may be more interested in the salary right now than someone making $30 an hour who would change jobs for a better opportunity that pays a dollar or two less. So in my survey, I ask if the employee would leave their current position for another company for 8% more in their salary. Some of the team say yes...and those are probably the same who don't feel that performance impacts compensation because they didn't get a 10% raise each year.

And yes...personal development is a big one for my folks...but I can only offer what I can...I can't force them to develop.

[Sheri Mitchum]

My boss is trying to work with HR to move my position up one level, but she is running into alot of roadblocks. Most of the options require reposting the position, which I have had to apply for each time. In any case I am looking for some feedback on how organizations value tech support positions. See my job description below.
I am the Help Desk Manager at a college. I service all employees and students in regards to instructional and general use technology and software support. I am the main help desk support: 1st and 2nd tier, but others in my department cover the hours when I am not here. I manage the workflow of the help desk and the coverage of both the help desk and switchboard. In addition to my help desk duties, I also request quotes, procure, and maintain software licenses and sw & hardware maintenance. I the Mac (Graphic Arts) network administrator which includes servicing the Apple computers and creating and deploying new images each semester.
In doing all of these things I provide significant support in managing our departmental budget.