Online Performance Management Makes Salary Administration Easier

by on June 29, 2009 · 0 Comment POSTED IN: HR Info Center

Automate the Salary Administration Process

The idea here is to automate the process. We’re not eliminating any discussions between supervisors and their employees. We just want to automate that. We want to make better use of the data that are available and improve the process through which we evaluate performance and handle salary administration.

We can also run manager’s rating comparisons or we can calibrate scores. One of the most important issues or one of the biggest difficulties that organizations run into with any kind of performance management is that an employee’s score oftentimes is predicated more on who is their supervisor and less on what is their actual level of performance.

Some supervisors are very tough graders. Some say everybody walks on water, some grade on bell curve, some say everybody is average. These types of systems can allow you to calibrate those scores to ensure that we have a better measure of actual employee performance as opposed to simply who is somebody’s supervisor.

We can link to salary administration. Any objective measures, maybe one of our goals is to increase revenue by 6% this year. We can tie it directly to the financial systems to pull that information and automatically calculate if we hit these goals or not. We can tie into a salary administration process whereby managers can look at the results of the merit matrix that can also recommend discretionary salary increases outside of that matrix.

It also helps to set goals and objectives. We can identify the weight for each of those goals, identify if they’re project or ongoing and submit them back and forth between an employee and supervisor. Throughout the course of the year, we can log progress on those goals, both the employee and the supervisor. If both the employee and the supervisor log in once a month, once a quarter and just take some notes, we’ve got much more effective discussion as well as evaluations.

We can automatically pull results of a client satisfaction survey or revenue or profit, turnover. Because we’re measuring turnover within this system by looking to the payroll system and we’re measuring performance within the same system, now we can completely change the metrics that we use.

When evaluating performance, you can look at a list of all of your scores you’re your employees. You can sort them low to high by each of the factors that are included in the evaluation.

Finally, we can link to salary administration and look at not only the results of the merit matrix and where our recommended increases and make discretionary increases.

We can create development plans on how an employee can improve their performance. At the click of a button, an employee can see not only the value of their salary administration, but we can communicate to them the value of their bonus, the value of our health and welfare benefits, the value of wealth retirement benefits.

Additionally, why not create a guest login so when you make a job offer, you can communicate that value. Why not let them login and see exactly what the value of those benefits are? If they’re comparing that to an identical job offer but they just have a standard form letter, you’ve communicated a lot more value to that prospective employee.

Edited Remarks from “How to Set Pay Ranges That are Fair and Effective” by Edward Rataj

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