1. Strategic Pay Systems

2. Parts of the puzzle Direct Compensation –Salary, Hourly Pay, Overtime, Bonus, Piecework Indirect Compensation –Vacation –Health and Pension –Sick Leave –Jury Duty

3. Highly Legalistic System Landmines –Overtime –Break Time –Independent Contractor Status Withholding, penalties, overtime, unemployment compensation, social security, and interest

4. Other Issues Salary Compression Equity (sense of fair treatment) –External – Market rate –Internal – Other jobs in organization –Individual – Others doing similar work –Procedure – Is the rate calculated and administered fairly

5. How do we set a rate? Salary Survey Worth of each job –Point –Factor Group by numeric scores Price according to statistical analysis Fine tune rates

6. Paying Executives Base Short-term incentives Long-term incentives Benefits and Perks

7. Paying Professionals Performance metrics are hard to determine Base set on education or professional qualifications not performance

8. Competency Based Pay Acquisition of new skill, knowledge or ability How do you determine actually acquired skill? How do you determine is skills are being used?

9. Broadbanding Reduce salary classes or grades

10. Comparable Worth Gender issues in compensation –Less leverage –Stay in jobs longer –Episodic work history –Attracted to lower paid entry jobs Family friendly low pay How do you fix it?