Horizon Point Consulting

Category: Personal Development

We all need a little personal development mixed in with our professional and career development. Read blogs in this category for stories and best practices for personal wellness and wellbeing, skills improvement, and  more.

  • Throwing compensation structure out the window

    I’m going to contradict myself (again). I seem to do this a lot, outlining a way to be process oriented by designing a traditional talent management program.  We’ve done this over the last couple of weeks by describing how to do job analysis, job descriptions and design a compensation plan. 

    But the key to knowing how to design any talent management program is to know yourself, or rather know your company. For mid to large companies, having job descriptions and a wage structure to define how you compensate people is more than likely completely necessary. It keeps things consistent, fair and easier to administer. 

    However, in a world where jobs are constantly changing and therefore the knowledge, skills and abilities necessary to define jobs are also constantly changing, defining a job based on hard and fast definitions and then trying to recruit and retain employees based on these hard a fasts may be a tremendous challenge.

    Another approach

    Instead of defining a job and recruiting to that description, find the superstars, those who know how to constantly learn and adapt in a fast-paced world, and hire them, then define the job around them. Pay them what they demand (the superstars know how much they are worth) and then temper their demands with a structure that incentivizes results your company needs them to achieve. 

    Notice this doesn’t mean ever defining the job, but it does mean that you may do it after you make the hire. We’re pretty adamant about defining the job through the behaviors you want people to exhibit and the results you want them to achieve in order to measure and reward performance. 

    We’re in the process as a small company of doing this now. A compensation structure is not what we need to recruit and retain people at this time. What we need is a superstar or two that understands the core of what we do (career development and talent management) and has experience in it, reflects our company values, and is motivated by achieving the results we need achieved.

    One day we may need a defined compensation structure, but right now it isn’t what we need, so we aren’t going to try to cram ourselves into a traditional process that may inhibit our ability to recruit and retain talent. Your company, on the other hand, may need to structure in order to recruit and retain talent. Realizing the outcome we all want is great talent that stays doesn’t mean we all get to that end result the same way.  

    What processes (or unprocesses) do you have in place to make sure you get the talent you need?

  • 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

  • 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

  • 3 Tips for Getting Over Your Vacation Hangover

    3 Tips for Getting Over Your Vacation Hangover

    You’re back from vacation and hopefully you unplugged while there. And now you have a vacation hangover. You’ve got way too many things to do for work, not enough time to do them in and your wondering, just like you’ve wondered the morning after you had one too many drinks, was it worth it? Should I really have even gone on vacation?

    After returning from a work and play trip, the hangover hit me (and my husband) hard.  The around the world re-routing and delays of flights to get us home didn’t help nor did the thee hours of sleep we got the night we returned due to the around the world trip home. My husband walked in from his first day back at work, looked at me without a hey, hi, how are you, and simple stated, “I don’t think our vacation was worth it.”   After which, he took the time to look at me, still in my pajamas, covered in spit up, no shower in 48 hours, laundry piles all over our closet and again simply said, “Looks like your day went about like mine too.” Whereas he had been at work, I was trying to catch up on work and laundry and spend time with our two kids on our first day back.  Not good. We actually both needed a drink, or so we thought, to nurse our vacation hangover.

    If you took some of our unplugging tips to heart by getting stuff done before you left and scheduling a day or two to play catch-up when you returned (unlike us), you may not be hung over at all.

    But if you are, here are some tips to get over it:

    1. Realize you have to take recovery from your hangover one day at a time.  You can’t get everything done in one day, so don’t stress yourself out when you don’t.  Prioritize what is going to help you get over your hangover the quickest and tackle that first. Ignore your inbox if you have to. Those 987 emails can wait.  For me, tackling playing grocery store and painting with my three year old was more important than the email inbox. It was a beast though when I got to it.
    2. Sleep. If you don’t catch up on it, you are never going to get anything done.  Sleep some of it off to be more productive.
    3. Drink water. Lots of it.  Especially if you’ve been on a plane. Even if you haven’t been on a plane, water can help cure any type and any size hangover.  Well maybe not a vacation hangover as much as a drinking water, but it does beg the point of making sure you take care of yourself physically because if you don’t you’ll never get your productivity back.

    How have you nursed a vacation hangover and gotten through it?