York2003xyz

xyz  时间:2021-01-31  阅读:()
XYZCompanyMarketCompetitivenessAnalysis:SeniorManagementPresentationDecember30,2003Preparedby:JenniferC.
Loftus,SPHR,CCP,CBP,GRPNationalDirectorJasonMitchellStatisticalAnalystOriginalProjectCharterAssistXYZCompanyintheanalysisofallpositionstodeterminetheorganization'scompetitiveposition.
Developmarketbasedpayrangesforthepositions.
Ifwarranted,recommendpotentialrealignmentwiththemarket.
MarketPricingMethodologySelectionofMarketDataNinecompensationsurveyswereselectedforuseinthemarketanalysis.
Atotalofthirty-sevenpositionswerereviewedandcomparedtothemarket.
Jobmatchesweremadebasedoncomparabilityofdutiesandrequirements,notjobtitles.
SalarysurveydataforNewYorkCitywereselectedasafirstpriorityforuse.
Iflocaldatawerenotavailable,nationalnot-for-profitsalarysurveydatawereutilizedandfactoredfortheNewYorkCityarea.
ThegeographicwagefactorforNewYork,NYis119.
0%ofthenationalaverage.
Wagedifferentialsaresimilarto,butnotthesameas,costoflivingdifferentials.
Forexample,ifapersonearns$20,000inTulsa,OK(100%ofthenationalaverage),anequivalentwageinNewYorkCitywouldbe$23,800(119.
0%ofthenationalaverage).
Allsurveydatawereagedto1/1/04usingaprorated4%annualfigure.
Comparisonsarebasedonthe50thand75thpercentilesoftheaveragebasepayreported.
SurveyDataSources2003Abbott-LangerCompensationinNonprofitOrganizations2003BLRNortheast/Middle-AtlanticSurveyofExemptCompensation2003BLRNewYorkSurveyofNonexemptCompensation2003CompDataSurveysCompensationDataNewYork2003/2004WatsonWyattECSGeographicReportonAccounting&FinancePersonnelCompensation2003/2004WatsonWyattECSGeographicReportonHumanResourcesPersonnelCompensation2003/2004WatsonWyattECSGeographicReportonOfficePersonnelCompensation2003/2004WatsonWyattECSIndustryReportonTopManagementCompensation2003MercerMetropolitanBenchmarkCompensationSurveyResultsoftheBasePayMarketPricingProcessImportantConsiderationsWhenReviewingMarketPricingResultsTitlesfallingbetween-10%and10%ofmarketaveragearegenerallyconsideredtobemarketcompetitive.
Generally,XYZCompanystrivestobe"marketcompetitive"withbasepay.
"Marketcompetitive"tendstoequatetothe50thpercentile(P50)ofthemarket.
P50meansthatinthesalarysurveydataforaspecificjob,onehalfoftherespondentspaybelowtheP50rate.
OnehalfoftherespondentspayabovetheP50rate.
Marketdatadonottakeintoconsiderationyearsofexperienceofreportedincumbentsinthepositionortheirjobperformance.
Organizationswithhighorlowturnovermayappearoffofthemarketduetolengthofservicedifferencesfromsurveyparticipants.
PercentileExample$70,000$75,000$80,000isthe25thpercentile(averageof$85,000and$75,000)$85,000$86,000$89,000$94,000isthe50thpercentile(averageof$99,000and$89,000)$99,000$100,000isthe75thpercentile(averageof$100,000and$100,000)$100,000$100,000$150,000$200,000PercentileDataPointsResultsofMarketPricingProcess50thPercentileBaseSalaryDataBasedonacomparisonofXYZCompanyaveragesalariesand50thpercentileblendedmarketaveragedataResultsofMarketPricingProcess75thPercentileBaseSalaryDataBasedonacomparisonofXYZCompanyaveragesalariesand75thpercentileblendedmarketaveragedataConclusionsBasedontheMarketPricingProcessConclusions–BasePayMarketCompetitivenessOnaverage,whencurrentaveragesalariesarecomparedtoP50averagepaymarketdata,XYZCompany'saveragesalariesfallatthemarket.
2.
3%abovethemarketOnaverage,whencurrentaveragesalariesarecomparedtoP75averagepaymarketdata,XYZCompany'saveragesalariesfallbelowthemarket.
15.
0%belowthemarketProposedMarketBasedSalaryRangesDevelopedFromMarketPricingResultsDevelopmentofMarketBasedPayRangesThejobtitlesunderreviewwerebrokenintofourfamilieswithsimilarworkduties,recruitmentmarkettrends,andpaymarkettrends.
AdministrationClericalClientServicesManagementTopsevenexecutives–notpartoftoday'sdiscussionWithineachfamily,thepositions'P75marketdataweresortedfromhightolow.
Approximate15%breaksbetweenmarketlevelsweremadetocreateagrade.
TheaveragemarketP75rateofpaywithineachgradewasusedasthemidpointofthesalaryrange.
WhencurrentXYZCompanypayrangeminimumswerehigherthantheprevailingmarketrate,thecurrentXYZCompanyrangeminimumwasusedasthesalaryrangeminimum.
PayRangeSpreadsRangeminimumsandmaximumswereconstructedaroundeachmidpoint.
Rangespreadisthedistancebetweentherangeminimumandtherangemaximum.
IntheproposedXYZCompanyranges,therangespreadfortheAdministrativeandClientServicespositionsis50%.
IntheproposedXYZCompanyranges,therangespreadfortheClericalpositionsis30%.
Atypicalrangespreadof50%allowsforflexibilityinplacingemployeesintherangeandfutureroomforgrowth,whilecontrollingpayrollcosts.
SampleSalaryRange(50%RangeSpread)Minimum(StartofQ1)StartofQ2Midpoint(StartofQ3)StartofQ4RangeMaximum$10.
00$15.
00$12.
50$11.
25$13.
75GeneralAnatomyofaSalaryRangeGenerally,thetargetzoneforseasoned,consistentlysatisfactoryperformers,orneweremployeeswith"hot"technicalskillsorauniquelyimpactfulrole.
MinimumMidpointMaximumGenerally,thetargetzoneforemployeesrelativelynewinthisposition(lessthan5years),orlongerserviceemployeeswithsomeperformancedeficiencies.
Generally,thetargetzoneforseasonedoutstandingperformersorselectedindividualswho,becauseof"hot"technicalskillsorauniquelyimpactfulrole,needtobepaidatorabovemarketaverageinordertoattractand/orretain.
ImportantConsiderationsWhenReviewingMarketBasedPayRangesTheproposedrangesdonottakeintoconsiderationanyincentivecompensation,benefits,orperksincumbentsinthepositionsmayreceive.
Placementintherangeisdependentonanumberoffactors,uniquelyweightedbyeachorganization.
PerformanceLengthofservicewiththeorganizationInthesameorsimilarpositionsInadifferentpositionPriorexperienceinsimilarpositionsatotherorganizationsImportantConsiderationsWhenReviewingCostImplicationsofMarketBasedPayRangesThreecostlevelshavebeenprovidedforeachfamily.
BringtominimumonlyThecosttobringeachemployee'spay,ifnecessary,totheminimumofthenewrange.
ThisistheminimumcostXYZCompanywillincurtoimplementthenewranges.
Placementintherangeassuminga10yearstomidpointscenarioThecosttobringeachemployee'spay,ifnecessary,toapointintherange,assumingittakes10yearstobringeachemployee'spaytothemidpointoftherange.
Placementintherangeassuminga5yearstomidpointscenarioThecosttobringeachemployee'spay,ifnecessary,toapointintherange,assumingittakes5yearstobringeachemployee'spaytothemidpointoftherange.
SamplePlacementintheSalaryRange:Employeewith5yearsexperiencePlacementunderbringtominimumscenarioPlacementunder10yearstomidpointscenarioPlacementunder5yearstomidpointscenario$10.
00$15.
00$12.
50$11.
25$13.
75CostImplicationsoftheProposedMarketBasedPayRangesBringtominimumonlySeventy-sevenof166currentemployees'paywillrequirebringtominimumadjustments.
Assumingcurrentpayrolllevels,thisapproachwouldcostanadditional$205,859,oranincreaseof2.
9%ofthecurrentpayrollof$7,020,238.
Placementintherangeassuminga10yearstomidpointscenarioOnehundredforty-twoof166currentemployees'paywillrequireadjustments.
Assumingcurrentpayrolllevels,thisapproachwouldcostanadditional$426,502,oranincreaseof6.
1%ofthecurrentpayrollof$7,020,238.
Placementintherangeassuminga5yearstomidpointscenarioOnehundredfiftyof166currentemployees'paywouldrequireadjustments.
Assumingcurrentpayrolllevels,thisapproachwouldcostanadditional$734,856,oranincreaseof10.
5%ofthecurrentpayrollof$7,020,238.
LookingAhead:BasePayRecommendationsRecommendationsXYZCompanyshouldreviewtheproposedcoststodetermineifsuchaprogramisfiscallyresponsible.
Ifcurrentfiscalconcernsprecludeimplementingtherangesintheirentirety,aphased-inapproachovertwoyearsmaybeadvisable.
Iffiscallypossible,bringtheincumbents'basepayatleasttotheminimumoftherange.
XYZCompanymaywanttoconsidertheuseofvariableincentivestoprovideadditionalcompensationopportunitiestoemployeeswithoutaddingfixedsalarycoststoorganizationalbudgets.

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