Transcript MAIS Template - PowerPoint - University of Michigan HR

Compensation Philosophy
Performance-driven and market-referenced
– We value high performance and compensate
employees based on their contributions to the
organization’s successes
– We are committed to paying staff a competitive
wage that correlates to performance
Compensation Philosophy
Benefits to the organization
– Clear message to the organization
• Reward high performance
–Recognize and reward employees
• Committed to pay competitive wages
–Hire and retain high performing staff
Compensation Philosophy Applied
Performance-driven and market-referenced
– Market Analysis
• Commitment to pay staff a competitive wage
that correlates to performance
– Salary Structure
• Group jobs of similar internal value guided by
market analysis
– Base Increases and Lump Sum Payments
• Performance-driven
– Rewards and Recognition
• Event/project specific recognition
Compensation Philosophy Applied
Market Study
– We are committed to paying staff a
competitive wage that correlates to
performance
• Annual process
• Monitor market competitiveness
• Market adjustments
Compensation Philosophy Applied
Salary Structure
– Group jobs of similar internal value guided
by market benchmarked jobs
• MAIS has 13 salary ranges
• Midpoints derived from market analysis
• Competitive Range of Pay
– 10% above and below the midpoint
Compensation Philosophy Applied
Performance-driven and market-referenced
– Base increases and lump sum payments
• Priority is to pay more to our high performers
and those who contribute to the organization’s
success
– Accomplished by providing managers with
guidelines
» Base Increase and Lump Sum Matrix
» Position in Range definitions
Compensation Philosophy Applied
Base Increase and Lump Sum matrix
– Align pay over time to performance
relative to position in range
– Range of % increase
• Lower paid, higher performing staff may
receive higher % increase
• Higher paid, lower performing staff may
receive lower % or no increase
• Lump sums in lieu of base increase in
some cases
Compensation Philosophy Applied
Position in Range definitions
– Guideline on what performance to expect
from staff based on their position in range
• Below the competitive range: typically new to the
job (e.g. new hire, promotion), and/or not yet fully
qualified
• Within the competitive range: fully qualified
• Above the competitive range: qualifications
extend beyond the job and performance is
exceptional and sustained at that level
Compensation Philosophy Applied
Rewards and Recognition
– A program to encourage and reward work efforts
and results that are exceptional and beneficial to
the organization
• Peer to Peer “Spirit of Excellence” awards
• Manager Reward - $25 gift card
• Director Reward - $250, $750, $1500 payments
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projects
process improvements
production support
customer service
leadership
Compensation Philosophy Applied
Conversations with Staff
– Help employees understand:
• Compensation philosophy
• How philosophy is applied
–Discuss performance expectations
–Manage expectations for base
increases
Compensation Philosophy
Performance-driven and market-referenced
– We value high performance and compensate
employees based on their contributions to the
organization’s successes
– We are committed to paying staff a competitive
wage that correlates to performance
– Questions?