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Presentation to the Canadian Compensation Association June, 1998 TAKING THE LEAP from ENTITLEMENT to toPERFORMANCE-BASED REWARDS REWARDS TAKING THE LEAP from ENTITLEMENT to toPERFORMANCE-BASED REWARDS REWARDS CCA Conference, 1998
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SETTING THE STAGE CCA Conference, 1998
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Who is Calgary Vocational Services? l Private, Non-Profit, Accredited Organization l Services: Employment Preparation Vocational Assessment/Counseling Job Search Employment Placement l 9 Locations in Southern Alberta l 100 Employees
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CVS Business Context l A “Results-Focus” l Competition, Bottom-line Accountability l Government Policy in the 90’s Lean, efficient & results-oriented CCA Conference, 1998
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CVS Business Context l Measuring Business Success Process vs Outcomes l Change as a Constant Need for flexibility & adaptability CCA Conference, 1998
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Impact of Rapid Growth l Cultural Shift l Complex, Illogical Classification System l Elitism and Inequity CCA Conference, 1998
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Entitlement vs. Accomplishment l Compensation based upon time in the job l Expectation of continuing salary increases regardless of performance l Performance review heavy on personal descriptors and short on accomplishments CCA Conference, 1998
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Examples of Objectives l To maintain involvement in present committee work l To assist with the supervision of practicum students l To continue to edit agency newsletter CCA Conference, 1998
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The Old Classification & Compensation Structure l Based on job titles and salary ranges tied to specific contracts l A different salary range for each title l 11 salary ranges with 6 incremental steps l Viewed as inequitably by employees CCA Conference, 1998
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The Performance Review Process l Subjective discussions l Organizational alignment not a critical element l Objectives but lack of clarity on expectations and measures CCA Conference, 1998
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Implications for Human Resource Processes l Revise Classification System Objective standards for comparison Internal equity l Compensation Structure Link Compensation to Performance l Performance Management Alignment of objectives Reinforce outcomes-based performance CCA Conference, 1998
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PROJECT PROCESS CCA Conference, 1998
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Links between Compensation & Commitment CCA Conference, 1998 Commitment Culture Compensation
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HUMAN RESOURCE STRATEGY DEVELOPMENT COMMITTED EFFECTIVE EMPLOYEES KEY SUCCESS FACTORS KEY GOALS CLASSIFICATION PERFORMANCE COMPENSATION STRATEGIES MARKET POSITION VALUES VISION DEVELOPMENT STRATEGIES RECRUITING CCA Conference, 1998
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Critical Success Factors for Design l Support organizational culture l Fit to new strategic direction l Shared decision-making CCA Conference, 1998
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COMPENSATION REVIEW PROCESS J Review of Jobs & Structure J Review of Jobs & Structure Conduct Market Survey Develop Compensation Structure Options Develop Compensation Structure Options Employee Advisory Committee (reps from each dept) Employee Advisory Committee (reps from each dept) Present Report & Recommendations CCA Conference, 1998 RESULTS Internal/External Equity RESULTS Internal/External Equity
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Review of Jobs & Organization Structure l Clarify key success factors to ensure alignment l Confirmed benchmark positions with employee advisory committee l Interview sample of incumbents l Written input opportunity for all employees l Draft classification factors & categories CCA Conference, 1998
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Compensation Review l Market survey l Develop compensation structure l Review l Strategy for implementation l Links to Performance Management Process CCA Conference, 1998
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Communication Strategies CCA Conference, 1998 l Ongoing input and feedback through Employee Advisory Committee (diagonal slice) l Interim communication updates (monthly or at milestones) l Communication sessions to present new compensation structure
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Performance Management CCA Conference, 1998 l Factors Contributing to Organizational Success l Review of Department Objectives and Indicators of Success l Clarification of Roles l Alignment of Goals
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OVERVIEW OF CONTRIBUTION PROCESS CCA Conference, 1998
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FACTORS CONTRIBUTING TO ORGANIZATIONAL CORPORATE GOALS CONTINUOUS IMPROVEMENT & SERVICE QUALITY EMPLOYEE CAPABILITY & PERFORMANCE SATISFIED CONSUMERS & CUSTOMERS INCREASED REVENUE & FUNDING VALUE-ADDED SERVICES CCA Conference, 1998
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Alignment of Goals Organizational Goals Team Objectives Individual Objectives Broad Specific CCA Conference, 1998
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Implementation Process Leadership Workshop Communication of Enhancements & Implementation Process Team Workshops (co-facilitated ) On-going Coaching CCA Conference, 1998
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RESULTS OF NEW SYSTEMS CCA Conference, 1998
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Generic Classification System l Simple, easy to understand and administer l Resolved major internal inequities l Standard for comparison l Classification decisions determined by Program Directors CCA Conference, 1998
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Example of Generic Classification Example of Generic Classification Level CCA Conference, 1998
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Compensation Structure l Fewer, broader bands (down to 5 bands) l Base salary inequities addressed l Organizational bonuses (Variable) l Performance-based pay l Potential for pay at risk l Increased managerial discretion CCA Conference, 1998
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10 11 9 8 7 6 5 4 3 2 1 Changes in Salary Range Structure 4 5 6 3 2 1 CCA Conference, 1998
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Changes in Salary Range Structure Min Max Min Max Midpt CCA Conference, 1998
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Enhancements to Performance Management Process l Alignment of individual and team objectives to corporate goals and business strategies l The first stage in defining roles, objectives and measures l Skills training for employees to develop meaningful performance objectives and measures CCA Conference, 1998
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Setting Objectives & Measures CCA Conference, 1998
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Setting Objectives & Measures CCA Conference, 1998
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On-Going Coaching Process CCA Conference, 1998 Plan Review Organizational & Team Goals Review Role Statement Jointly Set Objectives & Measures Coach On-going dialogue re: actual vs planned. Monitor Plans & Performance Guidance on performance improvements Review Self-appraisal Formal contribution review Management Review Develop Identify strengths & areas for development Determine development strategies Link to planning
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IMPACT OF NEW PROCESSES ON CVS CCA Conference, 1998
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Classification l Equitable l “It’s not a matter of money, it’s a matter of value.” l Increased morale l Clarity of placement of new positions CCA Conference, 1998
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Compensation l Attitude shift: Employee buy-in on principle of performance-based rewards l Salary inequities addressed l Quarterly bonus linked to organizational performance, encourages team efforts l Appreciation of CVS in comparison to other organizations CCA Conference, 1998
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Performance Management l Increased comfort with the goal setting process l Increased commitment to accountability l A clearer understanding of expectations l Performance reviews focus on more on accomplishments less on personality CCA Conference, 1998
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“The more efficient and effective we are, the greater the rewards to the organization, employees, and clients. “
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Lessons Learned l Salary ranges are not yet used effectively to differentiate on the basis of performance l Reduce reliance on incremental steps in compensation structure l Further refinement of skills in developing performance objectives and measures CCA Conference, 1998
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Lessons Learned l l Need for skill development in discussing and providing feedback and coaching performance l l Need for more frequent review and coaching for individuals CCA Conference, 1998
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Now What? l l Commitment to providing variable bonus for individuals tied to specific performance criteria l l The transition will continue towards: developing accurate performance measures tightening the link between performance & rewards CCA Conference, 1998
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