Salary Compression Final

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HR Project

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HR course

Transcript of Salary Compression Final

PowerPoint Presentation

HR ProjectAbout the CompanyCompany briefCompany HR ISSUESOld age employees and hiring new blood to replace

Inefficient recruitment (swap of role between hr officer and the technical) and the bias to assign unskilled employee on behalf of other efficient

Salary Inequity

Turnover

Allocation of training budget

Salary compressionDiscrimination in the working environment is seen as a serious matter, which could affect the morale of the employee as well as the quality of work provided by the worker as well.

A salary inequity problem, generally caused by inflation, resulting in longer-term employees in a position earning less than workers entering the firm today.

Some employees have continually received less pay than their counterparts for performing the same or similar jobs.

Equity and Its Impact on Pay RatesThe equity theory of motivationStates that if a person perceives an inequity, the person will be motivated to reduce or eliminate the tension and perceived inequity.

Methods to Address Equity IssuesSalary surveysTo monitor and maintain external equity.

Job analysis and job evaluationTo maintain internal equity,

Performance appraisal and incentive payTo maintain individual equity.

Communications and employees participation To help ensure that employees view the pay process as transparent and fair.

RecommendationBased on the choices of Methods, We recommend that the HR should provide a complete training or briefing to all the employees on the pay structure practiced in the organization and to be precise the delicate matters of pay rise, performance required and basic practices should be put forth to the employees at the beginning of their service or whenever there is a revise in policies of the organization. This practice may reduce misunderstanding among the employees as well as reduce unnecessary complaints as in the case of salary discrimination.

Also an early call to maintain or increase performance to achieve certain pay strata could also be a good motivation factor to the employee to perform well in the organization.ConclusionSalary and remuneration for the employees of the organization is an important factor to attract and retain the employee

It is also a very sensitive matter as it can affect the working relationship among employees as well as the relationship between the employee and the employer themselves.

It is very important for the employer to keep the employees informed regarding the payments they receive.Turnover Symptoms:40% of Employee not stays than 2 years (in junior Level)

Several move between lines in same department

A lot of hunted by competitor companies

Employees prefer to go to Gulf & KSA regions

Career Path unclear

Difference in Basic Salary between Companies

Huge difference between Egypt & Gulf regions

Unfair treated by His/her supervisor

No clear steps to get promotion

No tool and system to retain talent people Turnover ReasonsSet clear Developmental Plan

Track employee performance each quarter & feedback employee regularly

Remove barrier between employees & HR for open communication

In rolled employees in assessment center annually to know gap between performance & qualification needed

Assignments & Delegation for a good performance one in each team

Assign training according EDP

Set Talent Pool Program and revise annually to know who's potential and ready SolutionsFor Organization:Increase Stability lead to increase Customer Engagement which reflect direct on sales

Have a good talent pool of employees save a high performance for company For Employees:Receive real training which he need to get promoted

Always motivated & enthusiastic lead to high performance employee

Start to feel that he work in company respect him & invest to increase his performance BenefitsAllocation of training budgetTraining and development is one of most important functions for any reputable and multinational companies.

for retaining candidate employees should be applying adequate training according job requirements for maximizing benefits on candidate and job.

Training and development problemsUnplanning schedules or programs for training course through full year.Inadequate training courses with requirements needed for candidate which reflect negatively for company performance.

A lot of companies are utilizing training budget in other divisions.

Selection for unqualified trainers lead to loose many of competencies.

Example for improper utilizing training budget.X company refused to apply any training programs for their employees and at last quarter of year founded 2 million LE from company resources not used.

Action from company is applying training program for more than 2000 employees in highly expensive hotel, meanwhile no one from employees gain benefits from this training. HR Professional roleHR play critical role in utilizing resources properly to ensure achieving maximum benefits.

HR should included with technical manger and employee in development plan to guarantee adequate training program for everyone .

Any Questions Thank you!