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MINIMUM WAGE UPDATE – JULY 2018

The U.S. Federal minimum wage has not increased since July 2009, as such, many states, cities, or counties have decided to vote into law, their own increase in the minimum wage.  Some states have decided to gradually increase their minimum wage to $15.00/hour over the course of several years.  While the majority of increases occur at the beginning of the year, others wage increases begin mid-year, starting July 1.

An overview of the states, cities, or counties which have minimum wage increases beginning July 1, 2018 include:

  • California – Not statewide; increases in the following cities:
    • Emeryville
    • Los Angeles City
    • Los Angeles County, Unincorporated
    • Malibu
    • Milpitas
    • San Francisco
    • San Leandro
    • Santa Monica
  • Illinois – Not statewide, two local jurisdictions:
    • Chicago
    • Cook County
  • Maryland – Not statewide; one county:
    • Montgomery County
  • Minnesota – Not statewide:
    • City of Minneapolis
  • Oregon – State law change; varies by area: General, Urban, and Nonurban
  • Washington D.C.

For more detailed information click here:  MINIMUM WAGE CHART.  Review the tab for California to review specific city increases.

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.

Budget Boot Camp

For many HR Directors, drafting the annual HR department budget comes with the understanding that future project costs will be hyper inflated with the expectation that the majority of it will be left on the cutting room floor leaving a shoe-string level of funding for critical projects. If this matches your experience, this week’s blog on budgeting fundamentals and best practices can help. What the C-suite is trying to do is systematically collect financial data from the department heads and then prioritizes the budget dollars based on the degree to which they support organizational objectives. Developing a budget is a process with two common methods.

  1. Incremental budgeting – the current budget as a starting point and a new budget is developed by making adjustments upwards or downwards to each item based upon expectations.
  2. Zero-based budgeting – every item included in the budget must be justified before being included; therefore, the process begins with a blank page.

Regardless of which method your company uses, the critical step in preparing to write the budget is understanding the company’s objectives and how HR will need to respond in support. This means not only talking with the C-suite but also the other department heads. Will the company opening a new warehouse or office?  When is the next new product scheduled to be brought to market? Is a new IT system rolling out? Are there any mergers or acquisitions planned? Entering any new markets?

 Providing market based salary and benefits data for current and new job classes is a key part of the budgeting process. From a human resource perspective, the answers to these objectives impact company labor in several ways:

  1. The number of full and part time employees needed next year;
  2. Number of temporary staff or contractors needed next year;
  3. Benefit cost increases due to changes in headcount, vendor fees, or policy;
  4. Projected turnover rate with associated recruitment and onboarding costs;
  5. New compensation and benefit plans offered; and
  6. Impact of new or changed laws such as minimum wage, worker’s compensation, or insurance.

Most HR budgets cover operating expenses, such as the items listed above. Your HR budget may also contain capital expenditures. The difference between these two types of budgets is that operating expenses are for goods and service that are consumed or used up during the budget period whereas a capital expenditure is for an asset or project with a useful life beyond that period. For example, criminal background checks for new hires are an operating expense and a new HR information system is a capital expense. It is important to identify capital costs because they may require special funding sources such as a bank loan or selling of other assets.

It is also important to determine which projects and services are recurring or non-recurring. A recurring cost would be payroll expense. A non-recurring cost would be employment attorney fees. Knowing which items are recurring will help after the fact in managing expenses and identifying budget variances.

The opening paragraph spoke to inflated budgets and deep cuts. Much of this occurs to areas considered discretionary and contingency spending. Wide budget variances, both positive and negative, often result due to inaccurate forecasting or misunderstanding of company goals. WageWatch salary survey data provides the most current industry market metrics needed to build your compensation and benefits budgets.

At WageWatch, our expert HR team provides businesses in a large range of industries with accurate and timely survey data, Our benefits surveys and salary reports ensure that salary and benefits plans are on par with those in the industry. For more information on market compensation data, please call WageWatch at 888-330-9243 or contact us online at (WageWatch.com).

Selecting the Right Salary Structure for Your Organization

Salary structures are the foundation for base pay administration.  The salary structure you determine for your organization will have an impact on your business operations, especially related to talent management and cost containment, so the selection of a compensation philosophy is an important one.

There are four main types of salary structures; traditional, market-based, broadband and step.  According to recent surveys, market-based salary structures are by far the most prevalent type of structure in use today, followed by traditional and next by broadband.

  • Traditional structures have numerous pay grades with small distance between each range.  It is a hierarchal system conducive to promotions between pay grades.  Typical range spreads 20% – 40%, midpoint progression 5% – 10%
  • Market-based structures are based on what other businesses in your industry and or region are paying for similar jobs.  Typical range spreads  30% – 80%, midpoint progression 10% – 15%
  • Broadband structures group several related jobs, such as the administrative staff. A pay range is assigned, to the job group rather than to a job title.  Typical range spreads 80% – 200% and no defined midpoints
  • Step structures use standard progression rates within a pay range for a job in which employees can progress based on seniority and performance.  Typical range spreads 20% – 40%, midpoint progressions of 5% to 10% with defined points (steps) within the ranges.

Other factors in developing a salary structure are job evaluations, management fit, training and communication.

You can also look into alternative structures that are based more on what the employee can do and less on what the job description is such as skill-based pay, competency pay and variable pay.

Before designing a pay structure, you need to consider competitive salary practices, the organizational culture and the organizations budget tolerance for pay levels.  Designs considerations for pay structure include the number of range levels, width of the ranges from minimum to maximum values (i.e., range spreads), midpoint differentials and the degree of overlap between adjacent ranges.  A strategic plan for employee compensation determines how much you want to pay employees and what type of employees you want to attract.  A total compensation plan includes pay scales, reward programs, benefits packages and company perks. A successful strategic compensation plan allows your business to compete in the market for the best employees in your industry.

As a company, it is important to analyze benefits survey data, compensation surveys and salary reports. Having this information at hand allows you to plan a budget, including competitive employee salaries and benefits, which will help you to hire and retain a happy, talented team. At WageWatch, our expert evaluators provide businesses in a large range of industries with accurate and beneficial benefits survey data, compensation surveys and salary reports to ensure that payment and benefits plans are on par with those in the industry. For more information on market compensation data, please call WageWatch at 888-330-9243 or contact us online at (WageWatch.com).

To Check or Not To Check: A Background Check Primer

On May 24, Randy Pullen, President and CEO of WageWatch, Inc., published an article in HotelNewsNow.com about a local Arizona case involving a registered sex offender who allegedly used employment in the hotel industry as a front desk agent to target his next sexual assault victim.  The article concludes that thorough pre-employment background checks are a critical tool in mitigating new hire risks. 

There are many types of background checks available to HR professionals that can be conducted in house or externally by vendors who specialize in employment screenings.  HR professional should take a strategic view of onboarding as a process. By doing so, several layers of checks and screenings are implemented to best reduce new hire risks.  It is the old adage that the result is more than the sum of its parts.

New hire selection process starts with the job advertisement or announcement.  The announcement needs to be designed to attract specific skills and behaviors while discouraging those without. Posting in the advertisement that the position requires a drug test or criminal background check is a potent deterrent.  Those still interested should be directed to a job application that captures information that will form the groundwork for the pre-employment screenings in the next recruitment phase.

The EEOC enforces Title VII of the Civil Rights Act; Age Discrimination Act; Title I of the Americans with Disabilities Act; Equal Pay Act; and Title II of the Genetic Information Act.  Employers are welcome to use all manner of pre-employment screenings – as long as they comply with EEOC standards. None of these Acts directly prohibit employment discrimination based on credit information, conviction records, previous employment, education, or psychological/behavioral profiles. However, the EEOC has a published a Compliance Manual and provides guidance on a number of pre-employment scenarios, because of the disparate impact facially neutral polices can have on these numerous protected classes.

This is the tightrope that causes many HR professionals to gloss over background checks out of fear of inadvertently triggering an EEOC investigation.  What you don’t know, can hurt you.  HR has a duty to the company to traverse this tightrope and understand the often gray and contradictory playing field (between state and federal guidelines) in which they conduct pre-employment screenings.

Criminal Background Checks – Treat each criminal record individually in the context of the job sought, work environment and conditions, and risk to the organization. Ask the candidate about the situation. Deliberate omission and lies can be used a basis to disqualify the candidate.

Credit Check – Most commonly used for positions that have are executive level, have financial responsibility, or have access to confidential information such as social security numbers to reduce the risk of theft or embezzlement.  Allow candidates the opportunity to explain negative results as some reasons, such as medical bills, are protected.

Physical/Medical Exam – This screening is allowed only after a conditional offer of employment is extended and is used in specific jobs that require a proof of fitness in order to safely perform duties.  All candidates in the job category are required to have the same medical examination.  The candidate medical history is confidential and must be kept separate from employment records.  HR professionals need to keep in mind that the medical examiner does not make the final hiring decision.

Motor Vehicle Record – This is a critical check for positions that are required to operate a company vehicle as part of the job requirement.  In some states, DUI convictions are kept with the DMV not the criminal court system.  There are vendors that make multi-state verification easier by consolidating searches.

Work & Education History – Past performance is a strong indicator of future performance.  The goal of the work history and education background check is to establish that the glowing resume represented to the recruiter is factual and accurate. On education, check with the governing body on the authenticity of the degree.  We recommend asking for full transcripts for recent graduates with a short work history.

As a company, it is important for you to understand the new regulations set forth by the EEOC and implement them in your hiring and workplace practices. Additionally, for the good of your employees, it is helpful to analyze benefits survey data, compensation surveys and salary reports. Having this information at hand allows you to plan a budget, including competitive employee salaries and benefits, which will help you to hire and retain a happy, talented team.

At WageWatch, our expert evaluators provide businesses in a large range of industries with accurate and beneficial benefits survey data, compensation surveys and salary reports to ensure that payment and benefits plans are on par with those in the industry. For more information on market compensation data, please call WageWatch at 888-330-9243 or contact us online.

The Boomer Generation in the Workplace

It is not uncommon for baby boomers to now work side by side with co-workers from generation X and generation Y. Each of the generations in the work place today grew up in different times with widely varying political and social issues, technologies and other factors, which have affected their attitudes on everyday life. As an employer, it’s important that you understand each of the generations you employee in order to provide them with the work environment and rewards that make them most happy.

The basic employment packages for businesses are based on the needs of baby boomers, a very loyal generation of workers, typically staying with the same company for years and years. Employees of this generation highly value their benefits, such as health insurance, life insurance and vacation time. To determine if their company is providing salaries and benefits that are on target with the industry average salary, many employers turn to market compensation and benefit survey data. These baby boomer employees that have stayed with a company for most of their careers have invaluable knowledge and experience that is essential to business operations, so it’s important that employers keep them happy and reward them for their loyalty.

While it is important to keep baby boomers satisfied by analyzing market compensation data, benefit survey data and salary reports, it is also essential for employers to look at the needs of the upcoming generations. Many baby boomers are in management positions, but will start to retire around the same time leaving a large number of open positions. It is essential that skilled employees of the X and Y generations be there to take their place.

The new generations of workers enjoy benefits like the baby boomers, but these employees prefer additional incentives and small tokens of appreciation for their efforts. This generation is not as loyal to the companies they work for, and have no problem moving to a job at another company every two or three years. For this reason, it is even more important to build loyalty with employees of these generations by providing them with the benefits and incentives they desire. It is very beneficial for companies to be using benefit survey data, market compensation data and salary reports to determine the types of compensation, including incentives, that are standard for the industry. Having this data will help companies to stay competitive with other employers by creating appealing benefits packages that will attract and retain top talent.

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, benefit survey data and salary reports, please call WageWatch at 888-330-9243 or contact us online.

Posted in Recruiting & Retention on April 24th, 2013 · Comments Off on The Boomer Generation in the Workplace

Evaluating Survey Methodologies

Surveys, such as compensation and executive compensation surveys, are strategically designed to gather data, which is then assessed and distributed to the appropriate audiences. Surveys are an excellent tool for companies as the data compiled by various survey methodologies can be used to help make more sound business decisions.

The following is a list of the four evaluation models that are commonly used to provide structure to a survey:

  • Scientific-Experimental. This type of evaluation is historically one of the most popular methods used to collect and assess data. The methods for this evaluation are drawn from science, which is seen as accurate and objective. Compensation surveys and executive compensation surveys are often designed using this model, and are able to provide companies with salary reports that help them make important decisions in regards to their business operations.
  • Management-Oriented Systems. This type of evaluation usually works best in governmental or business organizations that complete a wide variety of activities. The two most common models include the Program Evaluation and Review Technique (PERT) and the Critical Path Method (CPM).  These models allow for a broad scale study that can encompass multiple departments throughout an organization. Many salary reports have been developed using compensation surveys and executive compensation surveys designed in the management-oriented systems model.
  • Qualitative. With these models, surveys are designed using a more subjective approach that focuses purely on observation. After collecting these observations, it is then taken and evaluated using human interpretation and opinion. While this model may be beneficial for some subjects, it is not one typically used for compensation surveys or executive compensation surveys, which require more quantitative, objective data for review.
  • Participant Oriented. Like the qualitative model, participant-oriented models are also designed using a more subjective approach. With this model, evaluation participants are the main focus of the study. This type of study is typically performed by companies that make products for the broad based consumer market, so surveys, such as compensation surveys or executive compensation surveys, are not developed in the participant oriented model.

Evaluators that work for a specific industry typically know what type of evaluation will work best to receive the data that is needed. Some draw from all four of the models while others stick to one or two. When it comes to salary and compensation surveys, more scientific, quantitative methods, such as the scientific-experimental model and management-oriented systems model, are required.

At WageWatch, our expert evaluators use the proper methods to develop effective salary and compensation surveys for a large variety of industries across the country for use by associations, human resource departments, employers and more. The data that we provide helps companies to plan their budgets and create employee payment, recognition and benefits plans that are competitive with others in the industry. For more information on compensation surveys and salary reports, please call WageWatch today at 888-330-9243 or contact us online.

Posted in Survey Reports on April 9th, 2013 · Comments Off on Evaluating Survey Methodologies

Common FLSA Pitfalls

The Fair Labor Standards Act (FLSA) is a federal statute that applies to most jobs within the United States. The law regulates such things as minimum wages, overtime hours and child labor laws. In addition to following these regulations, your business should also use salary reports, compensation surveys and other market compensation data to make sure your employees are being compensated fairly.

While the FLSA is designed to protect employees, there are certain elements of the law that can be a cause of confusion for employers. The following is a list of common FLSA pitfalls that employers can and do fall into:

  • “The FLSA doesn’t apply to our business because we’re too small”. While many state and federal employment laws take the number of employees into consideration, the FLSA does not; therefore, this law does apply no matter how big or small your business may be. The FLSA covers all employees who work for a company that affects interstate commerce, which is the majority of businesses.  To save time, legal expenses and a lot of headache, it is safe to assume that your employees are covered under the laws of the FLSA.
  • “Our salaried and/or high ranking employees are exempt from overtime pay”. This is not entirely true. There are many non-exempt employees that are paid set salaries based on salary reports, compensation surveys and other market compensation data, such as secretaries or technicians. Also, even if an employee has a high ranking job title, such as manager or director, it does not necessarily mean they are exempt. The Department of Labor has designed tests regarding the nature of each employee’s job in order to qualify for exemption. Pay and job title are completely irrelevant.
  • “Overtime is not given because the fixed salary covers straight time and overtime pay”. No matter how large the salary may be, this is false. The Department of Labor requires that if an employee exceeds the maximum weekly number of hours worked, overtime must be paid because salary pay only covers straight time pay.
  • “Our employees volunteer extra time, so no overtime is paid”. Employers should never allow employees to work extra hours off the clock because this can lead to wage claims and lawsuits. At a minimum, the employee must be paid minimum wage and overtime pay for each additional hour. There are exceptions for organizations, such as governmental entities or non-profits, which may have actual volunteers. For these types of organizations, every unpaid individual must sign a volunteer agreement in order to avoid lawsuits.
  • “Our business provides employees with compensatory time in place of overtime”.  While governmental employers are allowed to use compensatory time, private employers are not; however, private employers may informally use compensatory time by adjusting the schedule of a work week to make sure that no employee works over 40 hours. Keep in mind that in most cases, overtime hours cannot be averaged over a long time period. All overtime worked within one work week must be accounted for.
  • “Contracted employees don’t receive overtime”. Independent contractors do not get paid overtime as they are not considered to be employees of the company. While this is true, problems occur when employers misinterpret what it means for an employee to be considered a contractor. For example, employers may hire temporary workers during busy months of the year to help with the workload and think of them as contract employees. In reality, these workers are not contractors and are covered under FLSA.

It is important to know the regulations of FLSA in regards to your business and employees. Additionally, you should be using compensation surveys and salary reports in order to establish a fair rate of pay for your employees. At WageWatch, our market compensation professionals can provide your business with accurate, up-to-date compensation surveys and salary reports from businesses in your industry. To learn more about our compensation surveys, salary reports and other market compensation data, please call 888-330-9243 or contact us online.

Compensation Committees

Compensation committees are an appointed group of individuals that have corporate governance over compensation and benefit programs for executives and company officers. The committee is typically chaired by the CEO and composed of both inside management directors and outside independent directors. Their work includes determining the types of pay plans, the amount of compensation and the performance measures that the executives will be upheld to in regards to the calculation of incentives.

Compensation committees play a strategic role within the business by aligning company performance and executive rewards. Individuals within the committee must create a compressive program, with the aid of compensation surveys and consultants, which motivates executives to achieve the overall goals and objectives of the company within their own positions. High performance is best achieved through the implementation of a strategic merit pay program, short and long term incentive plans including stock awards, retirement, and executive perquisites.

In addition to strategy, compensation committees also play an administrative role. They are responsible for completing studies, evaluating alternative compensation plans and outlining the compensation package. Compensation Committees often times have oversight over complex human resources issues such as equal opportunity and pay, executive succession planning, and director evaluation issues. How much oversight Compensation Committee has depends on many factors including composition of the committee, management engagement, corporate culture, and regulatory environment.

Over the years, executive compensation has become a rather large issue in the media. There are numerous media watchdogs that have the ability to relay information to the public more quickly than ever before. In addition to increased media attention, executive compensation has also seen tighter government regulation. Committees must accurately address the expectations of board members and investors. To keep investors happy, the executives must stay motivated to achieve the established business goals and objectives. Therefore, committees have an extremely important role in designing merit pay programs.

An effective executive compensation program will include performance evaluation that is both measurable and well communicated. The rewards for delivering results need to be meaningful to executives and competitive with what other businesses in the marketplace are offering. At WageWatch, our Executive Compensation Survey and Compensation Consultants can you’re your Compensation Committee to establish a budget for salary changes, benefits and merit pay, including any bonuses or incentives. We have the experience and capability to collect data for compensation surveys, salary reports and other studies in a wide variety of industries. To learn more about how our compensation surveys can help you to develop effective and competitive compensation strategy, please call WageWatch at 888-330-9246 or contact us online.

 

WageWatch Wage and Employment Forecast for 2013

LODGING INDUSTRY 2013 WAGE FORECAST

The WageWatch 2013 survey of over 6,000 hotels nationwide in our database shows planned pay raises for hourly employees and non-exempt salaried employees averaging 2.8% with a median of 3.0% and a mode of 3.0%. The annual survey completed on January 7, 2013, further disclosed that hotels are planning on similar pay raises for their salaried exempt employees, with a mean of 3.0%, median of 3.0% and a mode of 3.0%. Randy Pullen, President and CEO of WageWatch stated, “For the lodging industry, 2013 will feel a lot like the 1993 movie Ground Hog Day starring Bill Murray, as WageWatch forecasts that pay raises for all sectors of the lodging industry will repeat raises experienced in 2012.”

If the planned wage increases for 2013 are further broken down between full service hotels and limited or focused service hotels, the survey discloses that full service hotels will, in general, have slightly higher pay increases.  Full service hotels participating in the 2013 survey disclosed an average planned pay raise of 2.9% for hourly employees, with a median and mode of 3.0%. Focused service hotels had a slightly lower average pay raise for hourly employees of 2.8% with a median and mode of 3.0%.  For salaried exempt employees, both full service and focused service hotels reported planned wage increases averaging 3.0% with a median and mode also of 3.0%.

Randy Pullen also stated, “While hotel companies are planning on pay raises of between 2.8% and 3.0% for 2013, it is likely that actual wage increases that will be reported later this year by WageWatch in its 2013 hotel wage survey will be two or three tenths of a percent less than the forecast.  We saw a similar trend last year where actual wage increases for the lodging industry as reported in our iBrief Blog of October 24, 2012 Industry 2012 entitled Wage Increases- Part 1, were lower than the forecast, coming in at 2.6%.”

LODGING INDUSTRY 2013 EMPLOYMENT FORECAST

This year will see continued employment growth in the Accommodations segment of the Leisure and Hospitality super sector as reported by the U.S. Bureau of Labor Statistics. The U.S. saw significant gains in employment for the Lodging Industry the first half of 2012 as indicated in the following table:

 

WageWatch had forecast employment growth seasonally adjusted on average of 25,000 jobs in 2012 vs. 2011.  As the year progressed, hoteliers became more conservative and did not hire as many seasonal workers during the summer months, which pulled down the average for the year.  WageWatch attributes the pullback directly to the political uncertainty of the election year and the looming fiscal cliff impasse at yearend. This conclusion is based on the continued strong economic recovery that the industry experienced in 2012, which should have translated into more employment gains.

Our forecast for last year of a 25,000 increase in employment was based in part on the PKF Hospitality Research, LLC’s national econometric forecast of the U.S. Lodging markets for 2012.  Actual performance for 2012 was better than forecast by PKF, with 61.5% occupancy, a 1.6% increase over 2011 yearend 59.9%.  Actual Average Daily Rates came in slightly lower than forecast. Overall, RevPAR increased by 6.8%.  Net operating income was forecast to increase by 12% for 2011 over 2010, a strong performance on the back of an 18% increase for 2010 over 2009. This level of growth in the lodging industry should have supported an increase of 25,000 jobs in 2012.

Looking ahead to 2013, most leading economists are forecasting continued slow but steady growth of the U.S. economy in the range of 2.0% or better. Expectations are for slow growth the first part of 2013 with stronger economic growth the second half of the year. This should result in continued growth for the lodging industry. Smith Travel Research is forecasting an increase in occupancy of 0.3% and an Average Daily Rate increase of $4.86 for the lodging industry, with RevPAR increasing by 4.9% for 2013.  PKF Hospitality Research is slightly more optimistic with a RevPAR increase of 6.0% for 2013. Overall, the improving Average Daily Rate and occupancy numbers for the lodging industry will lead to stronger income statements for hotels, with net operating income growing by double digits in 2013.

Based on continued economic growth in the U.S. with the economy strengthening midyear and strong financial performance forecasts for the lodging industry for the year 2013, seasonal employment should increase significantly this summer with the Accommodations segment rebounding strongly, with employment growth of 20,000 jobs for the year. This will bring employment levels slightly above yearend 2008 levels, but still 50,000 jobs below the peak for yearend 2007.

 

Posted in Wage Forecast on January 9th, 2013 · Comments Off on WageWatch Wage and Employment Forecast for 2013

Best Practices for Performance Review

One of the greatest challenges for companies in regards to their employees is the performance review process. Employees are evaluated on their performance of assigned job responsibilities, receiving feedback on areas they are doing well in as well as any areas that may need improvement. Reviews are used as a key component for career development, encouraging employees to work harder, reach higher and set attainable goals for the future.

Performance reviews can be a very helpful tool for both the business and the employee when done properly. A major problem with performance reviews is that often times they don’t accomplish what they set out to, leading to stress for both the employee and the employer. It may be difficult to know how to go about overhauling or tweaking your performance review process.

When giving a performance review, you must consider what your organization seeks to accomplish by completing the process. The following are a few of the best practices in regards to achieving beneficial performance reviews:

  • Employee performance reviews must be tied to business objectives. If your employees are consistently receiving high performance scores, but the business is not meeting its goals, then you may need to tweak your process.
  • Plan review performance dates strategically. As listed above, performance reviews should be tied to business objectives; therefore, you should align the performance review schedule with the company’s annual cycle instead of an irrelevant date, such as the anniversary of employment. Employees can be better evaluated after reviewing how the business as a whole performed during the fiscal calendar year.
  • Remember that the review process is always about the employee. As an employer, you must be direct in providing feedback. Be completely open and honest. Employees need to understand what they are doing well and what they can improve upon in order to set personal goals. There should be no question as to what is expected of them before their next performance review.
  • Performance review forms should only be used for a maximum of five years. Businesses are constantly changing and evolving, so it only makes sense for the performance review form to evolve too in order to achieve maximum efficiency.

If you would like to develop a more effective performance review process, consider the expert services of WageWatch. Using performance review data, we can help you to establish a budget for your company through the use of salaries surveys, compensation surveys and other data. With over a decade of experience working with industry associations and employer groups, we have the expertise to provide your business with online benefit, wage and compensation surveys. To learn more about how WageWatch can help you, please call 480-237-6130 or contact us online.

Posted in Benefits & Compensation on December 27th, 2012 · Comments Off on Best Practices for Performance Review