Introduction
Compensation strategies require an effective understanding of the challenges of a position and how these issues translate into reasonable and appropriate salary opportunities. There must be a clear linkage between different components of the compensation strategy in order to accomplish the desired objectives and to recruit the most qualified personnel for all available positions. For example, job description, performance evaluations, and external/internal salary comparisons must be evaluated in order to determine how to proceed in recruiting new employees with the appropriate compensation that matches the job description. These issues are important because they associate job performance to compensation in order to make any adjustments as necessary to recruit and retain well-qualified employees on a consistent basis. The following discussion will address this compensation strategy in greater detail in order to identify areas of strength and weakness, and to also determine how compensation structures are built and supported by human resource departments in a consistent manner.
Analysis
A job description must convey the requirements of the position as well as the expectations set forth by the management team. However, other issues must be considered with the job description because it conveys the role of the individual within a given work environment and the interaction with other team members. Therefore, working in a team-based environment is often required, in addition to the issues that may arise when the job description is unclear or does not convey the true expectations involved in the position. As a result, it is necessary to describe the role effectively and to convey the importance of independent and/or team involvement that is required to achieve success in the position.
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"Foundations of a Compensation Strategy".
Performance evaluations also provide important feedback regarding a position and the potential growth of an employee within this role. In this context, improved knowledge will play a significant role in enabling employees to achieve success within a position (Davenport et.al, 2002). Furthermore, organizational strategy must also be considered in the context of its role in shaping the job infrastructure and the desired outcomes (Buller and McEvoy, 2012). Employee performance must demonstrate the value of effective resource utilization and the development of new expectations in response to strategic evolution or change (Messersmith and Guthrie, 2010). These elements are critical to the development of successful outcomes and in supporting new directions for growth and change that will allow employees to grow and thrive to achieve higher performance goals (Messersmith and Guthrie, 2010). However, it is important to consider the challenges associated with performance evaluation metrics and their role in shaping outcomes for employees, particularly when biases or other favorable characteristics are evident that give an unfair advantage to some employees (Bol, 2011). Unfortunately, this is a consequence of modern organizations and continues to pose a threat to the integrity of the performance review process, particularly when those performing at or above expectations do not receive the appropriate compensation due to bias towards other employees (Bol, 2011). These issues must be considered in order to demonstrate fairness when conducting performance evaluations to ensure that all employees are treated equally during performance evaluations (Bol, 2011).
Salary Evaluation
Conducting a salary evaluation for a specific position requires an understanding of the roles and expectations of the position, as well as industry standards for this position. The following section will address the position of administrative assistant, including a basic job description and the compensation structure for this position.
Title: Administrative Assistant
Primary Functions/Job Description: The role of the administrative assistant is to provide administrative support to the manager and the team as needed. This may include answering phones, addressing inquiries, data entry, managing meetings and calendars, ordering supplies, serving as a liaison to the human resources team, and other duties as assigned.
Organizational Performance Evaluation System: The proposed evaluation system is as follows:
Exceeds Expectations: 3-4% Increase
Meets Expectations: 2% Increase
Does Not Meet Expectations/Needs Work: No increase and formation of an action plan to correct any deficiencies that exist
External Salary Survey: $3,000 monthly or $36,000 annually (Indeed, 2013)
Internal Salary Comparison: $3,250 monthly or $39,000 annually for an administrative assistant at the desired level
Conclusion
Establishing an effective compensation strategy requires the inclusion of different components that are critical in recruiting and retaining high quality employees. Human resources departments must consider compensation rates based upon industry standards, as well as other factors such as an accurate job description and job performance over time. Each of these factors must contribute to an effective approach that will support effective outcomes and will demonstrate the importance of specific factors in determining how to establish compensation levels for different positions. These factors are critical because they improve the potential to recruit high quality candidates for the available positions who will remain in these positions for longer periods of time and grow into these roles in an effective manner because compensation will be appropriate for the position in question.
- Bol, J.C. (2011). The determinants and performance effects of managers’ performance evaluation biases. The Accounting Review, 86(5), 1549-1575.
- Buller, P.F., and McEvoy, G.M. (2012). Strategy, human resource management and performance: sharpening line of sight. Human Resource Management Review, 22(1), 43-56.
- Davenport, T.H., Thomas, R.J., and Cantrell, S. (2002).The mysterious art and science of knowledge-worker performance. Sloan Review, retrieved from http://sloanreview.mit.edu/article/the-mysterious-art-and-science-of-knowledgeworker-performance/
- Indeed (2013). Administrative assistant salary. Retrieved from http://www.indeed.com/salary/Administrative-Assistant.html
- Messersmith, J.G., and Guthrie, J.P. (2010). High performance work systems in emergent organizations: implications for firm performance. Human Resource Management, 49(2), 241-264.
