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MILLENNIAL INFLUENCE IS CHANGING CORPORATE CULTURE

Millennials at work

It is predicted that Millennials will change the world more than any other generation, as stated in a recent Gallup report.  There are roughly 73 million millennials—born between the years of 1980 to 2000.  By 2020, millennials will represent 40-50% of the entire workforce.

This generation is defined by a lack of attachment to institutions and traditions which is one reason they change jobs more quickly.  One-fifth (21%) of Millennials changed jobs in the past year, costing the U.S. $3.06 billion.  It is estimated that 38% of millennials are actively looking for work and 43% are open to offers.  They are uncomfortable with rigid corporate structures and feel held back by rigid/outdated working styles.

To accommodate the change in values of the Millennial generation, organizations need to consider changing their culture.  The SIX key changes to consider include:

LEADERSHIP CHANGES:

PAST FUTURE
My Paycheck My Purpose
My Satisfaction My Development
My Boss My Coach
My Annual Review My Ongoing Conversation
My Weaknesses My Strengths
My Job My Life

 

  1. Millennials don’t just work for a paycheck, they want their work to have a purpose; a paycheck is no longer the primary driver.
  2. A key pursuit of millennials is personal development versus the pursuit of job satisfaction. They don’t need ping-pong tables or free food as a way to drive their satisfaction; they are more likely to see these tactics as condescending.
  3. A coach is preferred by millennials; bosses are viewed as being in command and control. A coach is someone who understands and will help build their strengths.
  4. An on-going conversation versus receipt of an annual review is the type of communication that millennials appreciate.
  5. Millennials don’t want to fix weaknesses, instead, they want to develop their strengths.  A focus on strengths leads to a millennial being able to contribute more to their role and to the organization.
  6. It’s not just a job to a millennial…it is their life.  Millennials value a role that allows them to use their strengths and want to be acknowledged for the contribution that they make as an individual.

Why is it so important to understand the change that millennials expect in the workplace?  They are the future of our workforce and if they are not engaged, companies suffer which creates a chain reaction in the entire U.S. economy.  It will be increasingly important for organizations to learn how to best tap into the strengths of the millennial generation.

Change can be challenging and demanding.  At WageWatch our compensation consultants can assist with your organization’s compensation needs and help ensure your wages and salaries are supporting your company’s business strategy and objectives.  In addition to our PeerMark Salary Survey for over 100 local lodging markets in the U.S. and Canada, we offer a National Benchmark Salary Survey. With over 9,000 hotels and 200 casinos in our database, WageWatch’s hotel and gaming salary surveys are the most comprehensive surveys available to Human Resource professionals.  For more information on our services, including consulting, salary surveys, benefit surveys, and custom compensation reports, please call WageWatch at 888-330-9243 or contact us online.

Posted in Uncategorized on May 22nd, 2019 · Comments Off on MILLENNIAL INFLUENCE IS CHANGING CORPORATE CULTURE

EFFECTIVE JOB DESCRIPTIONS

Job Describe

Job descriptions describe the major duties and responsibilities of a position or job and are an essential part of hiring and managing employees.  They are tools to help your applicants and employees understand their roles and accountabilities.  They can be used to establish a training checklist for new incumbents, as guideposts in the performance appraisal process, and as market benchmarks for compensation surveys.  Job descriptions are not required by law however, they can provide evidence of the essential functions of a job for purposes of complying with federal employment laws.  They can also be used for disability and worker’s compensation claims.  It’s good practice to get legal advice to ensure that your job descriptions are compliant.  Below are some of the legal requirements to keep in mind while writing your job descriptions.

  • Fair Labor Standards Act (FLSA):  Exempt or Non-exempt classification should be included in all job descriptions.
  • Occupational Safety and Health Act (OSHA) and the Americans with Disabilities Act (ADA):  Working conditions and any required physical activity should be noted in all job descriptions.
  • Equal Employment Opportunity Commission (EEOC):   Include, “we are an equal opportunity employer” in all job descriptions.
  • Age Discrimination in Employment Act (ADEA):  Job descriptions should not indicate age preference.

The first steps in writing job descriptions are the data collection and job analysis processes which begins with questionnaires and/or interviews with both the supervisors and current employee incumbents to gather and determine the key facts about the job.  You will need to collect information that will later be summarized in your job description template.  Generally, the data  will include Job Title, Immediate Supervisor, Department, Pay Grade, Working Hours, and Travel Requirements, FLSA Status, Mission/Summary, Essential and Non-Essential Tasks and Responsibilities, Supervisory Responsibility, Job Requirements (education, skills and experience required for the job), Working Conditions, Physical Demands, Equipment Usage, and Disclaimer for Management Ability to Modify.

A job description should be practical and summarize the key elements of a job in a clear, concise manner.  Be specific and avoid using subjective adverbs or adjectives such as “frequently,” “some,” “occasional,” and “several.”  It’s important to build flexibility into a job description and ensure that it is dynamic and functional.  Flexible job descriptions will allow your employees to evolve within their positions as processes, technology, and organizational changes occur.  A well-written job description will require an investment of time and effort to accurately reflect your organization and unique jobs.

The duties list should contain each essential job duty or responsibility that is critical to the successful performance of the job.   The list should be prioritized with the most important listed first down to the least significant.  Do not include tasks that comprise less than 5 percent of the overall time.  Each Essential and Non-Essential Duty should be assigned a percentage of time and all duties together should total 100 percent.  Each duty should be described in one to three sentences; the first sentence should begin with an action verb.  Generally, there are one or two non-essential duties that total five to ten percent of the total time and are duties such as “Assist in special projects as required” or “Any other task assigned by the supervisor.”   This provides flexibility to change duties over time and captures occasional and unforeseen needs that arise.

At WageWatch our experienced compensation consultants can assist with your organization’s compensation needs.  We can help you ensure internal equity and compliance with regulations as well as help you structure your compensation programs to support your company’s business strategy and objectives.  WageWatch also offers accurate, up-to-date benefit survey data, market compensation data and salary reports that will allow you to stay current with the times. This information is highly beneficial in creating the best salary and benefits packages that meet or rival the industry standards. For more information on our services, including consulting, salary survey data, benefit survey data and market compensation reports, please call WageWatch at 888-330-9243 or contact us online .

 

LINKING PAY PRACTICES WITH BUSINESS OBJECTIVES

Link PayCompensation plays a critical role in organizations’ ongoing and increasingly challenging efforts to attract, retain, and motivate a talented workforce.  Compensation design and management play a vital role in aligning employee behavior with business objectives.  Human capital costs represent a significant part of most organizations’ cost bases and need to be spent as effectively as possible.  It is vital to understand the consequences pay decisions can have on your organization.

Salary structures are an important component of effective compensation programs and help ensure that pay levels for groups of jobs are competitive externally and equitable internally.  A well-designed salary structure allows management to reward performance and skills development while controlling overall base salary cost with a salary range cap.  Market pricing is the most common method companies use to design base salary structure ranges using external market data combined with a focus on internal pay equity.  The goal of market pricing is to keep the organization from 1) underpaying, resulting in losing talent to competitors, or being unable to attract the talent it needs and, 2) over-paying which wastes organizational resources and impedes desirable turnover.  The secret to effective market pricing is the ability to spot and adequately analyze and level the data anomalies and imperfections using both science and experience.

Some organizations elect to pay lower than the market and offset lower than market wages with offers of ‘good’ benefits, meaningful work and stability.  This practice can lead to employee disengagement and organizations risk losing people.  Also, the organization will likely attract people who couldn’t get ‘better’ jobs with higher pay.  One of the key determinants of job satisfaction or dissatisfaction is how employees feel their pay package compares to others.

Pay-for-performance programs are used to award employees for desired behaviors and outcomes and they take many forms, including cash bonuses, company stock, and profit sharing.  Pay-for-performance plans have a learning curve, and they require regular maintenance in order to be and remain effective.   Incentive compensation plans need to align with the company’s business strategy, mission, goals, and objectives.  They should address the root causes of performance and the goals must reflect a balance of financial results and the key business drivers.  Payout opportunities should be consistent with the performance value and meaningful to employees.

While pay-for-performance plans provide a financial incentive to employees, there can be disadvantages.   If not crafted carefully, they can cause employees to focus more on quantity over quality.  They may impede teamwork if workers view helping another employee as wasting valuable time that could be spent on reaching their own goals.  And just like base pay, incentive pay should be competitive with the market or it could fall short of motivating the employees.

Smart, successful organizations do regular planning and evaluating their compensation and performance rewards systems.  Compensation is visible and important to employees.  It is critical to have a solid and competitive pay strategy where pay decisions and policies match the objectives of the organization.  At WageWatch our compensation consultants are focused on your organization’s compensation needs and ready to help you ensure that your compensation programs are supporting your company’s business strategy and objectives.  WageWatch also offers accurate, up-to-date benefit surveys, salary surveys and pay practices data that will allow you to stay current with the times.  This information is highly beneficial in creating the best salary and benefits packages that meet or rival the industry standards.  For more information on our services, including consulting, salary survey data, benefit survey data and market compensation reports, please call WageWatch at 888-330-9243 or contact us online.

INTERN PROGRAM BEST PRACTICES

Internship

Is your summer intern program ready to launch?  A review of some important information will help to make your program a success.  First, ensure your program is compliant with Department of Labor regulations regarding internships.  In the last couple of years, both the federal and state governments have been cracking down on the use of unpaid interns.  The use of ‘free’ interns has been significantly reduced since 2010 when the Department of Labor issued new criteria for employers using unpaid interns:

  • The internship needs to be structured as a training experience, similar to a classroom as opposed to the employer’s actual operations.
  • The training given to the interns must benefit the intern, not the employer.
  • Employers should see no immediate benefit from the intern’s work.
  • The intern cannot displace regular employees; they should work under close supervision.
  • In advance, establish that the internship is for a fixed duration of time and that the intern is not necessarily entitled to a job at the conclusion of the internship.
  • There should be a clear understanding by both the employer and the intern that the intern is not entitled to wages for the time spent in the internship.

If your program includes unpaid interns, consult federal and state wage and hour websites or legal counsel regarding regulatory compliance.  In addition to the regulations, many universities and colleges have specific requirements for the internship program up to and including providing educational credit.  If your intern program does not fit the regulatory criteria for unpaid interns, the same wage and hour guidelines that you follow for your hourly (non-tip) workforce will apply.  Interns are often paid at rates comparable to entry-level positions within the department or discipline in which the intern will work.  Local market or industry salary surveys can assist you in setting competitive pay rates for your interns.

In addition to the compliance component of your intern program, below are some best practices to consider integrating into your program:

  • Recruit the right candidates by having a clear and thoughtful internship description
  • Designate a program manager and a manager as well as a mentor for each intern
  • Provide structure, even when they aren’t paid.
  • Hold orientation sessions for all involved.
  • Provide interns with a handbook and/or website.
  • Provide interns with real work that is related to their major, that is challenging, that is recognized by the organization as valuable, and that fills the entire work term.
  • Consider offering flex time for the interns.
  • Host social events and activities for the interns.
  • Encourage team involvement.
  • Conduct exit interviews.

Today’s world moves fast, and as an employer, you should constantly be monitoring and adjusting your business operations to meet the ever-changing wants and needs of your employees. At WageWatch, we offer accurate, up-to-date benefit survey data, market compensation data and salary reports that will allow you to stay current with the times. This information is highly beneficial in creating the best salary and benefits packages that meet or rival the industry standards. For more information on our services, including market compensation data, benefits survey data and salary reports, please call WageWatch at 888-330-9243 or contact us online.

Posted in Uncategorized on May 1st, 2019 · Comments Off on INTERN PROGRAM BEST PRACTICES

HIRING STRATEGIES IN A TIGHT JOB MARKET

Hire Ppl

It is becoming increasingly challenging to recruit top talent due to the relatively low unemployment rate, the increase in job openings, and the lack of experienced candidates.  These factors require that companies need to be more creative and aggressive in their hiring practices.  In addition, there has also been an attitude change; it is much less of ‘who do I want’ and more of ‘who wants me’ attitude.  Listed below are some tips that may help provide success in the search for new talent:

  • Use multiple forms of social media: LinkedIn, Twitter, Facebook and actively engage on them.  Connect to related industry and check the posts and comments.  If there is someone who stands out, you may have found a new employee
  • Turn part-time positions into full-time positions
  • Provide training opportunities for current employees to fill open positions
  • Restructure work in ways that adapt to the new workforce; reduce education and other requirements
  • Review the list of job skills and keep the most essential skills versus losing a perfect candidate
  • Partner with a local community college and offer to speak with students; provide internship opportunities
  • Participate in job fairs and get involved in the local community
  • Speak at professional organizations and/or special interest meetings to meet potential candidates
  • Offer incentives to current employees who refer new hires, post open positions for visibility to all employees
  • Post for positions that you may have no intention on filling to gain a supply of candidates when a job does open-up
  • Provide a sign-on bonus to new employees
  • Ensure company website is mobile-friendly; a high percentage of searches are conducted using mobile devices

Another important factor is to understand the current perceptions of your company.  It is much easier to keep current employees versus hiring new employees.  It may be valuable to consider the following tactics to retain your current talent:

  • Be more competitive in wages
  • Provide employees stock ownership and/or stock options
  • Offer training programs for current employees to enhance bench strength
  • Provide a sense of organizational purpose and mission (valued by Millennials)
  • Permit flexible work schedules and work at home opportunities (valued by Millennials)

During the interview process, it is more important than ever to ensure that the process is as quick as possible to not lose viable candidates; ensure ongoing communication throughout the process to demonstrate interest.

Change can be challenging and demanding.  At WageWatch our compensation consultants can assist with your organization’s compensation needs and help ensure your wages and salaries are supporting your company’s business strategy and objectives.  In addition to our PeerMark  Salary Survey for over 100 local lodging markets in the U.S. and Canada, we offer a National Benchmark Salary Survey. With over 9,000 hotels and 200 casinos in our database, WageWatch’s hotel and gaming salary surveys are the most comprehensive surveys available to Human Resource professionals.  For more information on our services, including consulting, salary surveys, benefit surveys, and custom compensation reports, please call WageWatch at 888-330-9243 or contact us online.

KEY OBJECTIVES OF A COMPENSATION PROGRAM

CompCompensation can be defined as a reward earned by employees in return for their time, skills, effort, and knowledge.  Compensation includes direct financial compensation, such as wages, bonus and commissions, indirect financial compensation such as health and welfare, retirement and leave benefits, and non-financial compensation such as job training and development, recognition, and advancement opportunities.  A large percentage of the company budget is compensation, and therefore it is a key component of the overall strategic human resource management plan.

A compensation package can include more than salary and bonus.  It can include health and welfare benefits, retirement plan, leave benefits, and various other benefits, and perks.  Companies that offer a mix of salary and incentives have the highest employee morale and productivity.  It is most effective to pay incentives as soon after goals are met as feasible such as monthly or quarterly incentive payments, rather than annual payments.  A good incentive plan should be easily understood by the employees including no more than two to four performance factors.  How you train, develop, and manage your employees will also drive retention and performance.

When developing your compensation program, the primary objectives to consider are:

  • To attract the best people for the job
  • Retain high performers and lower turnover
  • Reward performance on specific objectives by compensating desired behaviors
  • Motivate employees to perform their best
  • Improve morale, job satisfaction, and company loyalty
  • Align with overall company strategy, goals and philosophy
  • Achieve internal and external equity
  • Comply with all pay and non-discrimination regulations

While compensation is not the only thing that motivates people, compensation that is too low will demotivate employees.  Studies have found a direct correlation between top performing companies and employees that are satisfied with their pay and benefits package.  Competitive and appropriate pay can positively impact customer service.  Employees receiving fair and competitive compensation packages are generally happier with their jobs and are more motivated to perform at their peak.  Motivated employees can add to the bottom line of the organization and contribute to growth and expansion. Studies show that motivated employees take fewer sick days and have fewer disability claims.

While there are many objectives to a successful compensation program, two key objectives are ensuring internal equity and ensuring external competitiveness.  Salary surveys provide the necessary market data to build competitive pay structures.  Good salary survey data provides you with the information needed to ensure your compensation package is competitive.  Salary surveys are an invaluable tool for the setting right compensation strategy and for following and monitoring the desired pay market.  It is important that you select the right salary and benefits surveys and market data for your employees based on where you are competing for talent in your industry and outside your industry as well as geographic location.

WageWatch offers accurate, up-to-date benefit survey data, market compensation data and salary reports that will allow you to stay current with the times.  This information is highly beneficial in creating the best salary and benefits packages that meet or rival the industry standards.  The PeerMark™ Wage Survey is the only Web-based custom survey tool that allows individual survey participants to select their competitive set for comparison purposes.  Our experienced compensation consultants can assist with your organization’s compensation needs.  We can help you ensure internal equity and compliance with regulations as well as help you structure your compensation programs to support your company’s business strategy and objectives.  For more information on our services, including consulting, salary survey data, benefit survey data and market compensation reports, please call WageWatch at 888-330-9243 or contact us online.

EEOC PROPOSES NEW DEADLINE FOR EEO-1, COMPONENT 2-PAY DATA

EEOC

When the EEOC’s online reporting portal opened on March 18, it was still unclear whether the new reporting requirements would be included for the 2018 report and if so, when this data would be due.

As a reminder, the new reporting requirements center around submitting information about employee pay data so that trends concerning gender pay inequity can be spotted and addressed. As most employers should be aware, this has become a hot topic in employment law (gender pay equity issues) and many laws are either being proposed or passed to address this concern:  The House recently passed the Paycheck Fairness Act, numerous states have enacted equal pay and salary history laws, and the EEOC has included pay equity as a strategic enforcement priority since 2013.

What the EEOC proposed on April 3rd is that employers have until September 30, 2019, to submit employee pay data as part of their annual 2018 EEO-1 report (otherwise known as Component 2 of the EEO-1 report).  The US District Court still needs to “bless” this with a court order, but it is looking as though the dates that employers should be aware for the 2018 EEO-1 report are as follows:

The deadline for Component 1 of the EEO-1 report remains May 31, 2019.

The proposed deadline for Component 2 of the EEO-1 report is September 30, 2019 (pending court approval).

The guest editor for 4/11/19 blog:  Spognardi Baiocchi LLP, Legal Advisors; www.psb-attorneys.com.

WageWatch offers accurate, up-to-date HR metrics, benefit survey data, market compensation data and salary reports that will allow you to stay current with the times. This information is highly beneficial in creating the best salary and benefits packages that meet or rival the industry standards. The PeerMark™ Wage Survey is the only Web-based custom survey tool that allows individual survey participants to select their competitive set for comparison purposes.  Our experienced compensation consultants can assist with your organization’s compensation needs.  We can help you ensure internal equity and compliance with regulations as well as help you structure your compensation programs to support your company’s business strategy and objectives.   For more information on our services, including consulting, salary survey data, benefit survey data and market compensation reports, please call WageWatch at 888-330-9243 or contact us online.

Posted in Regulatory & Legal Updates on April 10th, 2019 · Comments Off on EEOC PROPOSES NEW DEADLINE FOR EEO-1, COMPONENT 2-PAY DATA

THE COMPENSATION MODEL

Comp-Pay Model
The compensation discipline seeks to maximize competitive advantage by attracting and retaining the most qualified workers to an employer.  Best practice in today’s workplace considers total compensation to include base salary, bonus or incentive plans, benefits, and non-cash compensation.  A pay philosophy is a company’s commitment to how it values employees.

A consistent pay philosophy gives the company and the employee a frame of reference when discussing salary in a negotiation.  This usually requires a competitive well-rounded pay philosophy, including benefits and work-life balance.  Compensation philosophies reap little reward without the knowledge and alignment to the organization’s overall business strategy.  Armed with the right information, compensation professionals can create a philosophy that will stimulate a more engaged workforce and lead to a higher-performing organization.

A compensation system will price positions to market by using local, national, and industry-specific survey data.  It will include survey data for more specialized positions and will address significant market differences due to geographical location.  The system will evaluate external equity to the competitive market and internal equity which is the relative worth of each job when comparing the required level of job competencies, formal training, experience, responsibility, and accountability of one job to another.  The system must be flexible enough to ensure that the company is able to recruit and retain a highly qualified workforce while providing the structure necessary to effectively manage the overall compensation program.

Organizations should establish and communicate clear pay policies.  At a minimum, organizations need to ensure that their compensation policy adheres to employment legislation including:

  • Minimum Wage
  • Overtime Pay
  • Pay Equity
  • Vacation Pay
  • Holiday Pay
  • Incentive Pay
  • Tips and Gratuities
  • Pay Method and Pay Frequency
  • Pay Deductions
  • Payroll Records Tracking and Reporting

Many organizations adopt transparency in compensation practices.  Transparency involves compensation plans that are simple to understand, easy to implement and published internally to all employees.  Many companies provide an annual Total Rewards Statement to each employee that outlines and explains all compensation elements included in their compensation package including cash and non-cash.

Bonus and incentive pay is tied to specific performance results against pre-set goals and objectives at the individual and organizational level.  Results that are measured can be quantitative and qualitative.  When establishing bonus schemes, organizations often apply a balanced scorecard approach: looking at financial, human resources, and customer results.

A compensation model that encourages innovation should strike a balance between the risks and rewards associated with the work.  Reward programs can recognize innovation within all elements of a company and at all or the majority of employees.  When only the top 10% of high performers are eligible for recognition and associated rewards, approximately 70% of employees who fall in the middle of the performance bell curve and who are consistent performers day after day, can become discouraged and disengaged.  The goal should be to properly calibrate your awards approach to reach far more employees with recognition rewards, thereby creating a culture of innovation.

Compensation is a part of the complex HR processes, policies, and procedures.  Top management has to decide, the primary role of compensation in the organization, whether it will be a supplementary role or a dominant role.  The compensation philosophy is the foundation for all organizational compensation decisions.

Change can be challenging and demanding.  At WageWatch our compensation consultants can assist with your organization’s compensation needs and help ensure your wages and salaries are supporting your company’s business strategy and objectives.  In addition to our PeerMark Salary Survey for over 100 local lodging markets in the U.S. and Canada, we offer a National Benchmark Salary Survey.  With over 9,000 hotels and 200 casinos in our database, WageWatch’s hotel and gaming salary surveys are the most comprehensive surveys available to Human Resource professionals.  For more information on our services, including consulting, salary surveys, benefit surveys, and custom compensation reports, please call WageWatch at 888-330-9243 or contact us online.

Posted in Uncategorized on April 3rd, 2019 · Comments Off on THE COMPENSATION MODEL

PAY COMPRESSION: CAUSES AND SOLUTIONS

Pay Compress-B

Pay compression is when either a subordinate’s base pay is very close to or more than their supervisor’s or when a less tenured employee is equal to or paid more than a senior employee in the same position.  One of the most common causes of pay compression is when pay increases for current employees are low, but new employees are paid a higher salary to attract them.  This problem becomes more severe in economic downturns when pay increases are limited but it occurs even in better economic times.  Pay compression is most evident in pay systems where lower level jobs, either through union contracts or other market forces, create a situation where first-line supervisors are paid less, on an hourly basis, than their subordinates.

When the job market is weak, many organizations hire people who had already done the same work for another organization, eliminating the need for training.  Rather than hiring people with high potential and developing them for the long term, they have opted for people who can “hit the ground running,” regardless of their potential.

When salary compression and the policies that enable it are sustained over several years, it can be demoralizing and lead to widespread employee dissatisfaction.  Employers should be concerned because salary compression can transform compensation from a motivator into a de-motivator.

Salary compression may be accompanied by pay inequities which could violate equal pay regulations.  In situations where newer staff earn more than experienced staff, it could create a pay equity problem if the experienced staff are a protected class.

There are steps that can limit the detrimental effects of salary compression.  For instance, when a new job opens, organizations should try to promote someone from within, rather than hiring from the outside.  Many organizations have policies that limit how high within a range, new hires can be paid.  When new hires are brought in at higher salaries or when across the board increases are given due to market movement or minimum wage increase, have a policy that requires internal equity analysis and adjustments.

Institute a policy of transparency and calibration across units.  Disparate actions between different organizational units can create salary compression and other inequities.  Transparency can take the form of a simple scorecard showing the rates of increases and promotions in each unit.  Calibration can involve managers sharing planned compensation actions with their peer managers.  It can also include several levels of approval for any actions before they take place so that a senior leader can spot any actions that appear suspect and will cause inequities, including compression.  This tends to create a norm and, over time, leads to decisions that are more consistent and responsible.

Salary compression can be a serious problem that eventually causes an organization to lose some of its most talented employees.  Although many organizations have unintentionally allowed salary compression to take root, there are actions they can take now and in the future to keep it from reoccurring.

At WageWatch our compensation consultants are focused on your organization’s compensation needs and ready to help you ensure that your compensation programs are supporting your company’s business strategy and objectives.  WageWatch also offers accurate, up-to-date benefit surveys, salary surveys and pay practices data that will allow you to stay current with the times.  This information is highly beneficial in creating the best salary and benefits packages that meet or rival the industry standards.  For more information on our services, including consulting, salary survey data, benefit survey data and market compensation reports, please call WageWatch at 888-330-9243 or contact us online.

MOTIVATING EMPLOYEES THROUGH JOB DESIGN

Job Design-B

With changing demographics and a more competitive job market, human resources are more challenged than ever before to hire, engage, maintain and keep employees happy and motivated.  Workers want more choice and flexibility in how they approach tasks.  They look for more opportunities to change duties, for exploration, to learn and to advance in their career in a less linear way.  It is not only desirable but essential for businesses to have motivated employees.  Today many human resource professionals are looking at how to design jobs, work environments, and cultures that motivate employees.

Job design is a deliberate attempt to structure the tasks and social relationships of a job to create optimal levels of variety, responsibility, autonomy, and interaction.  The primary objective of job design is to ensure a fit between the job and its performer so that the job is performed well and the job performer gains satisfaction from doing it.

There are multiple strategies for job design:

Job rotation involves moving employees from job to job at regular intervals. When employees periodically move to different jobs, the monotonous aspects of job specialization can be relieved.

Job enlargement consists of making a job larger in scope by combining additional task activities into each job through expansion.  It focuses on enlarging jobs by increasing tasks and responsibilities.

Job enrichment is focused on designing jobs that include a greater variety of work content, a higher level of knowledge and skill, provide the worker more autonomy and responsibility, and provide an opportunity for personal growth.

Research shows that there are five job components that increase the motivating potential of a job: skill variety, task identity, task significance, autonomy, and feedback.

  • Skills
    • People will be more motivated if they are using a variety of skills in their positions, rather than one thing repeatedly.
  • Task Identity
    • Employees are motivated to complete tasks if they identify with them and have seen them through from start to finish.
  • Task Significance
    • When employees feel that their work is significant to their organization, they are motivated to do well.
  • Autonomy
    • Employees like to be able to make decisions and have flexibility in their roles. Most employees will have lowered motivation if they feel they have no freedom or are being micromanaged.
  • Feedback
    • Employees need feedback (both positive and negative) in order to stay motivated.

Quality of life in a total job and work environment is also an important part of a positive and motivating experience for employees.  The elements included in ‘quality of life’ include open communication equitable reward system, employees’ job security, and satisfaction, participative management, development of employee skill, etc.  Since a significant amount of one’s life is spent at work, jobs need to provide satisfaction for sustained interest.  Jobs provide employees not only a living but also help in achieving other goals such as economic, social, political and cultural.

The concept of empowerment extends the idea of autonomy.  The idea behind empowerment is that employees have the ability to make decisions and perform their jobs effectively.  Instead of dictating roles, companies create an environment where employees thrive, feel motivated, and have the discretion to make decisions about the content and context of their jobs.  Empowerment is a contemporary way of motivating employees through job design.

A growing body of research on the relational structures of jobs suggests that interpersonal relationships play a key role in making the work experience important and meaningful to employees.  Interpersonal relationships can often enhance employees’ motivations, opportunities, and resources at work.

Though employees need to have some intrinsic motivation (internal motivation) to complete the tasks assigned to them in their roles, they also need to be motivated by their employers. By designing jobs that encompass all of the core characteristics, you can help increase employee motivation, in turn improving performance.

WageWatch offers accurate, up-to-date benefit survey data, market compensation data. and salary reports that will allow you to stay current. This information is beneficial in creating the best salary, incentive, and benefit packages that meet or rival industry standards.  The PeerMark™ Wage Survey allows individual survey participants to select their competitive set for comparison purposes.  Our experienced compensation consultants can assist with your organization’s compensation needs.  We can help you ensure internal equity and compliance with regulations as well as help you structure your compensation programs to support your company’s business strategy and objectives.   For more information on our services, including consulting, salary survey data, benefit survey data, and market compensation reports, please call WageWatch at 888-330-9243 or contact us online.