Compensation and Benefits for finance HRM
- 1. Base Pay – Monetary Compensation STI - LTI – Multi year returns Merit increase Merit Bonus Required and Voluntary Competitive Strategy and Compensation Strategy – understand the relation Objectives – what is the objective of your comp strategy Any compensation plan obj is to ARM concept (Attract, Retain and Motivate Talent) Internal Alignment – diff levels of skill should be paid External Competitiveness – Do you Lead/ Lag/ Follow the market Adjustment in Pay – How should the wage change Management – Who is involved Communication – Transparency Pay Structures 1. Internal Alignment Economic Pressure - Supply and Demand in the Labour Market Stakeholders- Unions (Prefer small variations in pay) and Shareholders (Executive Compensation) External Factors Govt Policies 2. Organization Competitive Strategy Human Capital – Level of skills and experience Technology Org. Structure and Policies 3. Job Specific Direct Market Pricing Rank Method - Relative worth of job in org. Point Method 4. Person Based Pay Skill based plan – Skill planning – Skill grouping --- Certifying --- Establish Skill structure Competency based plan
- 2. Ext Competitiveness Availability of talent Profit Margins of the company Org. Characterstics – Lead/ Lag/ Match the going rate Lead – Key Positions Match – Routine Jobs Lag – Startups Pay Surveys to determine the Going Rate Det what type of surveys Group similar jobs and pay grades Paying for Performance Incentive Plans : Individual and Group Incentive Plans Employee Benefits Plan and communicate the benefits Technology HRIS --- uses relational data Targeted communication Employee access to info Incentive mgmt. Mgmt of Health conditions Pay roll Personalization and Transparency is key for a good C&B
- 3. People Analytics Employee Experience Net Promoter Score When (freq) - From new hire, exit, change of management Asking same questions helps to compare similar employee groups Employees Survey Analyze feedback and communicate to employees what you have heard Focus Groups after the surveys Don’t ask questions which won’t result in actions Don’t stop at once a year surveys Don’t hide the bad news How to improve employee experience Analyse keywords--- freq Analyse and use comments Steps for doing analytics 1. Understand the problem 2. Form a testable hypothesis 3. Collect and analyse the data 4. Convert findings into actionable insights Ask questions to understand the context Talent Acquisition Efficiency – Time to hire and time to fill, how fast vacancies are filled Effectiveness – Effectiveness is harder to measure, but it is the metric that leaders care about the most in the long run. quality of hires (early attrition, career progression, 360 feedback) Upskilling and training- for candidates matching 80% of criteria Metric: Quality of hire by source
- 4. Attrition and Retention Voluntary and Involuntary attrition Attrition Rate= No of employees who left/ No. of employees at the company Denominator is generally the average of employees at the end of the month Voluntary Attrition Rate= No. of employees who left vol/ No. of employees at the company Involuntary Attrition Rate= No. of employees who left involuntary/ No. of employees at the company Vol. Attrition Rate = Ability to retain talent Involuntary Attrition Rate = Indicates Performance issue Compared with industry benchmark Source: Exit Surveys, Attrition Rate at each SBU and location average headcount through the last 12 months - This method will smooth out seasonal hiring and fluctuations in workforce size. DEI Diversity: Being invited to party Inclusion: Being asked to Dance % of women/ethnicity group/disabled: Hired, Promoted and Retained Levers for DEI: Hire Retain and Promote
- 5. Last Mile Problem: People are not taking actions Influence without authority – Trust and align the stakeholders Ability to simplify complex or technical concepts Talent Management Strategy Steps 1. Identify Talent Needs – New roles, new type of skills and how many and what type of new leadership is required 2. Identify the talent gaps- More people, New Leaders and Missing skills 3. Design recruiting and hiring plan 4. Develop internal Talent Business Leaders need to drive the TM Involve leaders to challenge the TM strategy Put metrics in place to track progress Train and equip leaders Communicate and feedback Talent Assessment Identify skill gaps Identify Hi-pos Development Plan PMS - Identify strength and gaps Succession Plan & Career Progression Talent Pipeline – Build a workplace plan Build a strong talent pipeline – both internal and external talent Leadership Development Program Skill based training program Career Development program – Effective career discussions – cross training, career counselling and job rotation
- 6. Talent management strategies that respond well to talent needs have defined what success looks like in each role Succession Planning Identify critical positions Identify Qualified employees – Identify skill gaps and strength , 9 Box grid Build IDP Employee Engagement Comprehensive Onboarding Program – First impression is last impression, what is expected of them, mission and vison Focus on Career Development- Begin immediately, Outline training programs Increase Talent Visibility Formal Talent Review Informal Talent Review Give them new experiences Job rotation, cross functional opportunities Data Cleaning ---- Data Analysis ---- Data Visualizations
- 7. Data Cleaning Uniformity Data Integrity Check for bias Remove duplicate option in excel to remove duplicates Check for any irregularities for e.g., work exp can’t be 90 Functions – Predefined calculations Count if- counts the no. of cell Countif(“Range”, “Condition”) Gives the length of characters - Len (Cell, NO. of characters) Left - Takes a spf characters from a cell Right( Cell, No of characters) Takes a spf characters from a cell Trim function removes extra space Concatenate function – Joins two cells together for eg- one cell has first name whereas other has surname then use this function to get the full name Sort & Filter Function Filter tab creates the dropdown menu Lookup Function VLOOK Up – Vertical Tables HLOOK UP – Horizontal Tables Conditional Formatting
- 8. Data Validation – Pivot Tables