Horizon Point Consulting

Author: Mary Ila Ward

  • Want to keep great employees? Know how to compensate them.

    Want to keep great employees? Know how to compensate them.

    We’re working on a compensation project now with a company to redesign their exempt salary structure. When thinking about how to best design a system, it’s important to realize there are two key factors: 

    Internal Equity– Are you paying people fairly compared to what other people within the organization are making based on the knowledge, skills and abilities required for each role? 

    External Competitiveness– Are you paying what the market demands for certain knowledge, skills and abilities required for each role in order to recruit and retain people?

    Basic steps to consider when designing a compensation structure: 

    You gotta do a job description. In considering the factors of internal equity and external competitiveness, both of these hinge on knowing the knowledge, skills and abilities needed for the jobs in which we you trying to define a compensation structure.  Read more about performing job analysis and what a job description needs here (link back to previous post). 

    Get market data.  For external equity, you need to know what the market pays for the jobs you have.   

    Some sources for market data: 

    Career One Stop

    Salary.com

    Salary Expert

    BLS

    Define compensable factors. Compensable factors are based on what the organization places a value on (internal equity) in order to differentiate the value of roles.  For example, education is a compensable factor.  In general, positions that require a bachelors degree have a higher value placed on them than those that only require a high school diploma.

     

    Create the structure. Creating the structure takes the information defined in the previous steps to create salary grades and ranges. Grades are the hierarchy of the salary structure (grouped by jobs with relative worth) and ranges are the minimum and maximum established within grades. Using compensable factors for each job, you will then place each job into the appropriate salary grade.  

    Create a Salary Administration Manual. In order to make sure that the structure you created is implemented appropriately, a salary administration manual needs to be created.  The manual should include a description of the newly created structure, administrative procedures governing the structure and guidelines for annual salary increases. In addition, it should contain ways to keep the program up-to-date through a periodic systematic review of the structure.

    Designing and creating a compensation system seems like a daunting task. But if you take things step-by-step, you’ll see that it can be manageable. More importantly, if done correctly it can add tremendous value to your organization by helping you recruit, retain and reward talent appropriately. 

  • 2 Ways to Get What You’re Worth

    2 Ways to Get What You’re Worth

    Out looking for a job or considering a discussion with your boss about a raise?  If you are, you need to do your research to consider what the knowledge, skills and abilities you have are worth in the marketplace and to the company in which you work or are negotiating with. (Note:  The best time to negotiate your worth is before you accept a job. Once you get locked in a job and a salary range, usually the only way to get a substantial raise is to switch jobs either through a promotion or a move to another organization.)  

    Get the facts about what you’re worth in the market.

    The first thing to do is compare what you do with salary data that is free out there.  Some places to look review salary data: 

    Career One Stop

    Salary.com

    Salary Expert

    BLS

    Take all these sources and compile them to average out what an overall market range is for your role.  Having the facts about what the market will pay for your skills will help you create a case for your value. 

    Know what you’re worth to the organization and suggest that worth be tied to your compensation package. 

    Next, you need to consider how you will or are currently adding value to the organization that may be outside the scope of the traditional job description tied to published salary data. If you are, we suggest instead of trying to get that value quantified through a salary, really prove this worth by suggesting that part of your compensation be tied to that extra value you add. You don’t get that extra unless you create a win-win for the company.  

    For example, if you are awesome at looking at company processes, realizing where there are inefficiencies and cutting costs which leads to increased profitability and margins, gather your numbers and facts and present a case to get a share as a part of your compensation of that increase profitability you created or know you can create.

    If, through your efforts, you are able to bring in more clients or business, quantify this and request part of your compensation be tied to a cut of the increased revenue that comes from your efforts. 

    Most employers will be impressed with the initiative you take to tie your results to company results. Yeah, its riskier to not have it all in guaranteed in salary, but the alternative is more than likely a 2-3% increase a year and no one gets rich off this.  

    How do you make a case for your value? 

    Want more? You may also like: 

    Know Your Value

    Why you should STOP being afraid of negotiating salary

  • Now don’t go changing your compensation structure without….

    Now don’t go changing your compensation structure without….

    You’re worried you’re not attracting the right talent or that you aren’t able to keep good talent around for long and you think it might be because of your salary structure.   Before you launch into a compensation structure overhaul (we’ll tell you how to do this next week on the blog), you need to:

    Know for sure that the reason you are having the problems you are having is in fact compensation related.  It may be that all your supervisors are jerks and people may leave even if you paid them twice as much.  Surveying employees, especially through exit interviews is a good way to do this.  Also, getting a quick snapshot to see if you are externally competitive in compensation in your area is also advisable.  

    Some sites to spot check your wage rates with the market (Make sure you search based on your market.  If you are just competing for talent locally, then search by your metropolitan area, not the entire nation): 

    Career One Stop

    Salary.com

    Salary Expert

    BLS

    Do a job analysis and write job descriptions.  You can’t accurately design a compensation structure without defining what jobs require.  This helps you compare jobs both internally and externally.  

    A job analysis can be done in several ways: 

    Job observation

    Job questionnaire to the people in the roles and their managers

    Review of job logs or reports

    Structured panels

    A combination on any of these

    Reviewing occupational information can help you frame any of the above or help you check the data you’ve gathered against standard responsibilities based on job title

    A job analysis needs to gather what is required to perform the job. (This is a really short way of saying this; there are many purposes of job analysis because it is the basis of any talent management intervention.  Read more about the things needed in job analysis based on what you are trying to accomplish here.) 

    A job description needs to include: 

    Date description was written

    Job status (exempt, non-exempt; full or part time)

    Title

    Purpose of the role

    Reports to

    Job summary (outline of responsibilities of the role)

    Knowledge, skills and abilities required as well as education and experience required

    Essential Functions for ADA purposes

    Tasks and Responsibilities of the job

    Physical factors of the job (environment where the job is performed) and working conditions (overtime requirements, shift)

    The disclaimer that the description is not designed to cover a comprehensive listed of everything the job entails (the other duties as assigned statement) 

    Once you have gone through these two steps, you are ready to start with a compensation redesign if you have determined through Step 1 that is what you need.  Check back on the blog soon to see how to do this. 

    Do you need a compensation overall or something entirely different?

  • 3 Introverted leaders and the leadership lessons we can learn from them

    3 Introverted leaders and the leadership lessons we can learn from them

    We used to think leaders were born, not made. Now we know through training, coaching and mentoring the skills needed to be an effective leader can be learned.  However, there are certain leadership situations, company cultures and team dynamics lend well to certain types of personality traits (“born” characteristics) that individuals possess that make a person more effective in their leadership role. 

    One of the most common personality continuums discussed today is introversion/extraversion.

    A rundown of the dynamic can be seen here: 

    Orientation of energy

    E     EXTRAVERSION

    Energized when you are with people 

    Talk out your ideas

    First you live it – then you understand it

    Enjoy the interaction

    Breadth of inter

    INTROVERSION    I

    Energized when you are alone

    Reflect on your ideas before vocalizing

    First you understand – then you live it

    Enjoy the concentration

    Depth of interest

    Unfortunately, there is still an “extravert ideal” that surrounds leadership, especially in western culture.  Whereas some situations and roles demand someone who is energized by others, outgoing, gregarious and people oriented, some leadership roles and situations are served better by the leaders who are thinkers, driven by ideas and oftentimes driven by solitude or small, intimate relationships, otherwise known as the introverts among us. 

    Consider these three introverted leaders and how their disposition made them more effective: 

    Moses.  As the leader of the Israelites out of slavery in Egypt and into the Promised Land, Moses (especially the movie portrayal of him) may imply that he was an outgoing orator with the skills to fire up his people and move them forward.  However, Moses spoke with a stutter and utilized his more extraverted wingman, Aaron, to speak to the people (Exodus 1-15).  His introversion is also seen in his humility. Numbers 12 accounts that he was a “quietly humble man, more so than anyone living on earth.”

    Introverted leadership trait seen in Moses that is needed for today’s leader:  Humble and reflective

    More on leadership lessons from Moses

    Stephen Wozniak. When you hear Apple, most immediately think of Steve Jobs as the leader. However, Apple most likely would have never existed without Stephen Wozniak, the brainy electronics geek and consummate nice guy that designed the circuit boards that created Apple’s first computer. He co-founded the company with Jobs.   In the early years of Apple, Wozniak was the worker bee and genius that drove the creation of the personal computer. 

    Introverted leadership trait seen in Wonziak that is needed for today’s leader:  Innovation through concentrated hard work and depth of knowledge

    Rosa Parks:  As one of the icons of the Civil Rights movement, Rosa Parks was a small, unassuming woman. Her refusal to give up her seat on the bus to a white person may portray her as confrontational person, but that she was not. And because she wasn’t, her impact was far-reaching. Just think, would a gregarious, outspoken extravert have made the same impact on the bus that night by refusing to give up their seat? 

    Introverted leadership trait seen in Rosa Parks that is needed for today’s leader:  Determination and quiet resolve. 

    Know an introverted leader?

    How does their introversion make them a better leader?

    Other introverted leaders you should learn more about: Eleanor Roosevelt, Warren Buffett, Al Gore, Gandhi, Einstein, Stephen Spielberg, Larry Page

  • Career Spotlight: Dental Assisting

    Career Spotlight: Dental Assisting

    Have you always known that you wanted to work in Healthcare, change peoples’ lives, and get to know your community better? Do you want to be a wife and mother who has Fridays off and gets to spend her nights at the ball field watching her children play? Do you want to serve others by providing them with a way to look and feel much better about themselves? Do you want the opportunity to [move up] in your professional career?

    If any of the above describe or are desirable to you, then Dental Assisting may be the career path for you!

    Education Required:  High School Diploma or GED

    If you are in high school, always strive to have strong grades and a solid foundation in Science, Math, English (Grammar) and Reading. All subjects will not only prepare you for college, but any kind of post-high school program. As a potential dental assistant, dentists look for someone who can learn quickly and can educate their patients about not just their teeth, but their overall health. The way you articulate and the grammar that you choose speaks volumes of your educational background and will therefore provide you with a greater chance of landing a job.

    Skills and Personal Qualities:  

    Focus on personal service

    Hard worker

    Punctual and dependable

    Strong ethical background

    Critical and quick thinking

    Ability to learn and move quickly

    Good personal hygiene 

    Ability to get along with others, especially other women

    Is the field growing?

    The dental field is always growing. At a growth rate of 22%, the field is growing much faster than average. As our society has become more educated on their oral healthcare, we have increasingly sought out professional dental care. Therefore, there is always a dental office looking for a trained dental assistant. 

    What is the pay like?

    image2

    In our area, the pay is typically $9-14 starting out. There is always an opportunity to advance in the dental field and to receive a much higher pay. Many assistants go on to become dental hygienists, office managers, or in some cases, dentists. 

    If you are interested in learning more about dental assisting, please visit:

    www.ada.org

    Today’s guest post is from Dr. Maggie McKelvey, DMD. Maggie owns North Alabama Dental Assisting. She graduated summa cum laude from The University of Alabama with a degree in Biochemistry and Math.  She cheered for the Crimson Tide during her time there and was a member of Alpha Chi Omega Sorority.  She received her dental education at the University of Alabama at Birmingham, where she graduated within the top of her class. Following graduation, she enhanced her dental experience working in private practice and pediatric clinics in Decatur and surrounding areas.  Dr. McKelvey is a proud member of the American Dental Association, the Alabama Dental Association, and the Academy of General Dentistry. She is passionate about her profession and is so excited to help teach others about a career in the field of Dentistry!