Bridge Knowle - Salary and Reward Structures (Training and Workshop)

COMPETENCY-BASED SALARY + REWARD STRUCTURE

http://totallyunrelatedrandomanddebatable.blogspot.com/

STRUCTURETraining Session and Workshop

Kenny Ong

• Day Care Center

HRM STRATEGY AND REWARD STRATEGY

Part A

The McPlaybook*

Make it easy to eat• 50% drive-thru• Meals held in one

Make it easy to prepare• High Turnover• Tasks simple to learn

& repeat

Make it quick• “Fast Food”• Tests new products

for Cooking Times

Make what customers want• Prowls market for new

products• Monitored field tests

*Adapted from: Businessweek , Februrary 5th 2007

Phases of Organisation Development

• Innovation• Enthusiastic

• Results orientation• Teamwork & Cooperation• Concern for order & quality

• New relationship building• Open to change• Efficiency & productivity oriented

Growth Phase

Organisation features

CurrentExploring and role

definition

Entrepreneurial Phase

People characteristics

Next PhaseManaging growth

Professional Development Phase

FutureManaging Efficiency and

Reengineering

Organisation Efficiency Phase

• Flexibility• Quick decision making

• Pace setting and authoritative

• Attract capable individuals

• Flexibility

• Variable base salary & effectiveness related performance rewards

• High standards• Excellence• Commitment

• Systems thinking

• Coaching & developmental

• Reward results achieved

• Retain & motivate

• High to medium base salary & longer term performance related rewards

• Efficiency & productivity oriented

• Responsibility• Participatory

• Coaching & counseling

• Authoritative

• Cost efficiency• Consistency• Equity• Medium base salary and

efficiency performance rewards

characteristics

Organisation climate

Management style

Objectives of HR policies

The Changing Business Environment

• Recognizing global forces• Preparing a resilient and just

society• Searching for a new

relationship model with industry

• Free market, customer centered organization

• Leading economic change

• Creation of conditions for regional and international

• Industrial development

• Establishing government control

• Protecting free enterprise

• Domestic economic development

• Post colonial administration

• National development

• Establishing control over natural resources

• Establishing administration systems in the

• Post war• Reconstruction

Government objectives

Development of the knowledge based economy1996 and on

Industrialization period1970-1995

Post Merdeka1957-1969

Pre-merdeka1945-1956

• Attract, retain and motivate competent professionals

• Participative • BOD of professionals, team

decision making directed at achievement of targeted results

• International standards on corporate governance.

• Innovation• Global standards on

efficiency• Professional management

industry

• Flexible pay

• Authoritative• BOD led by

charismatic personalities

• Largely local principles on BOD conduct

• Production capacity utilization

• International market

international recognition

• Pay for loyalty –years of service

• Autocratic • BOD led by

individualistic style

• Import substitution • Domestic market

development

• Pay practice “enough”

• BOD led by “home office” representative

• Home office standards

• Production for the colonial empire

systems in the interest of the British empire

Pay Philosophy

Corporate Leadership

Corporate culture

Budgeting vs. Priorities

Upturn Flat DownturnFight Complacency

Sharpen Edge

Innovation

Acquire

Cash Flow

Example: Business Situation vs. R&D Priorities

Keep Momentum

Conquer

NPD Cycle Time

Improve Edge

Extensions

Counter Competitor

Acquire

Profits

Build momentum

Cash Flow

Focused on ‘Breakthrough’

JV, In-source, Out-source

Eliminate bottom 20%

Improve Top 15% revenue-generating products

↓ R&D, ↑Sales

Business Situations vs. HRM

Upturn Flat Downturn

Fight Complacency

Sharpen Edge

Keep Momentum

Innovation

Acquire

Profits

Cash Flow

Keep Momentum

Conquer

‘Change’ mgmt

Reduce Fat

Continuity

Everyone Happy

Profits

Build momentum

Talent Mgmt

Innovation/R&D

Early wins

Slow Down HR Costs

Top Talent focus

Sales, Sales, Sales

Increase attrition

Motivation

Business Situations vs. HRM

Upturn Flat Downturn

Fight Complacency

Sharpen Edge

Keep Momentum

Innovation

Acquire

Profits

Cash Flow

•Projects•Job Ads•Communication•F/L Manager Com.•Middle Management

Keep Momentum

Conquer

‘Change’ mgmt

Reduce Fat

Continuity

Everyone Happy

Profits

Build momentum

Talent Mgmt

Stack R&D

Early wins

Slow Down HR Costs

Top Talent focus

Stack Sales

Increase attrition

Motivation

•Middle Management•Involvement (survey, suggestions)•Realistic Goals•Controllable KPIs (customer satisfaction, production)

THE BATTLE FOR TALENT Staff Attraction & Retention

Intro:

“Cow don’t drink water cannot push cow head down”

push cow head down”

Question: Talent Management for Who?

Excellent

Very Good

Average

Not Good

Commit Suicide

Before we start…

1. Who designs your Talent Management programs?

2. Are you in the Talent Pool?3. Do you qualify?

3. Do you qualify?4. “It takes a crook to catch a crook”

Talent Segmentation

• Who are your Talents?

G: A Talent for others does not

G: A Talent for others does not mean a Talent for you

Talent Segment Targeting

• Unwanted by big MNCs• Small companies• Boring Environment• No Growth/Learning• No MBA

• No MBA• Passion, Values, IQ (streetsmart)• Appreciate Chaos• Multitask• Passion to Learn

Talent Segmentation

Group I

(Talent Pool)

2 3 4 5

POTENTIAL• Identify

(Talent Pool)

Talent Segmentation

Group I

(Talent Pool)

Group II

(é Potential)

2 3 4 5

(Talent Pool)(é Potential)

Group III

(é Performance)

Group IV

(Counseling)

Selection and Identification

PERFORMANCE APPRAISAL

1. Results

2. Values

3. Special Contributions

POTENTIAL EVALUATION

1. Capacity

2. Competencies

3. Culture

1. Capacity

Next Level

Ambition

2. Competencies

Competent

Reliable/Consistent

Pressure

3. Culture

Demonstrate

Improve

Influence

Exercise

Define ‘Performance’ Define ‘Potential’

Exercise

• Exercise:1.Factors for Performance Appraisal2.Factors for Potential Appraisal

Talent Scarcity and Brain-Drain Problem

1. Change your Business2. Change your Business Model3. Re-locate4. In-Source5. JV or Partnership or Swap

5. JV or Partnership or Swap6. Create micro Business Units7. Over Promote8. Over Pay9. Contractual tie-up10.Hire Low, Train High

SALARY & BENEFITS: HOW IT

SALARY & BENEFITS: HOW IT FITS INTO THE BIGGER SCHEME OF THINGS

Brand Execution: Aligning the 4-Wheels

PositionSegmentation

& Targeting

StructureResources

Philosophies

& Targeting

Leadership

Person

Brand Alignment: Talent Segment Philosophies

Principles HR Philosophy

1.Equal / Fair

2.Happy / Productive

3.Hire Low, Train High

4.Performance vs Potential

5.SP drives TM

6.Talent Pool owned by the company

7.Retention / Engagement

Brand Alignment: Demographics Segment Philosophies?

Alignment: Framework

• Org Structure• Job Design• C&B• Policies & procedures• Decision making

Structure

• Decision making• Job fit• Management Systems• BSC and KPIs• Decentralized vs. Centralized • Control vs. Empower

Strategy: Framework

• Tools• Physical facilities• Peer support• Information

Resources

• Information• T&D Programs• Mentors• Guides• ICT• OJT

Strategy: Framework

• Role modeling• Vision/Mission/Philosophy• Leadership Style

Leadership

• Delegation & Empowerment• C&B• Promotions• Transition development

Strategy: Framework

• Recognition• Recruitment• Training• Values• Motivation

Person

• Motivation• Self Efficacy• Awareness• Useful Competencies• Career aspirations• Attribution (control)

Alignment: 4-Wheels Model

PositionSegmentation

& Targeting

StructureResources

Philosophies

& Targeting

Leadership

Person

• Exercise: Use the 4-wheels to determine corporate alignment needs

Consulting Process and Deliverables

Step 1: Data

Turnover history & Exit Interviews

Training Program inputTraining Program input

Step 2: Analysis

Turnover AnalysisTurnover Analysis

Work Culture analysisWork Culture analysis

Step 3: Recommendations

Changes to HRM policies (inc. C&B)

Work Culture enhancementsWork Culture

enhancements

Step 4:Tools/Resources

Interview Formats and Questions for Recruitment

Employee Satisfaction Survey

Q12 Staff Engagement Survey

Stay SurveyStay Survey

Compensation & BenefitsCompensation & Benefits

Leadership analysisLeadership analysis

Compensation & Benefits analysis

HRM policies analysisHRM policies analysis

Leadership and staff relationship mgmt

Performance management system

Staff MotivationStaff Motivation

Q12 Staff Engagement Tools

Benefits Survey formatBenefits Survey format

SALARY & BENEFITSPart B

OPTIMIZING COMPENSATION & BENEFITS

Background: The Four Desperates

1. Desperate Competition

2. Desperate Consumer

3. Desperate Achievers

4. Desperate Changes

Refer: Analysis of Retention – Example and Exercise

• Exercise: Define your Talent issues, limited to the most critical 4 aspects.

Principles and Objectives

Principles Company’s Needs

1.Succession Planning of Key Leaders –Founding Directors (perpetual business theory)

Founding Directors (perpetual business theory)

2.Retention of Key Staff – especially younger ones

3.Transform into a Performance-based organization

Principles and Objectives

1.Equal / Fair

3.Hire Low, Train High

4.Performance vs Potential

5.Retention / Engagement

• Exercise: Define your Company-HRM Objectives and HRM Philosophies.

What drives our Reward?

ValuesStrategy

Compensation & Benefits

Before we proceed…

Reality #1

Cash is King

Reality #2Tangible C&B

Attraction

Reality #3In-Tangible C&B

Retention

Tipping Point for Attraction/Retention

The 51.28% Theory

• Resign = Push + Pull > 51.28%• If staff is Happy:

=> 0 + Pull > 51.28%

• Exercise: What “Values” drive your Talent Management strategies?

• How will these Values impact your HR and C&B policies?

policies?

Branding and Positioning:

“You don’t attract who you want. You attract who you are”

John Maxwell

What to Pay?

• Pay for Service• Pay for Job• Pay for Competency

• Pay for Performance

Performance and Incentives

1. Internal Equity1. Internal Job Rates2. Performance differentials

2. External Competitiveness1. External Job Rates - Benchmarking2. Demand & Supply

What’s the Difference?

• Increment

• Bonus

• Promotion

Exercise: How does your company define the difference?

How to choose a durian

Durian

CompareCompareCompareCompare

How to choose a durian

Each Other

Other stall

How do we compare?

•Skills / Knowledge

•Problems

•Responsibility

•Competency- Knowledge

- Skills- Experience

•Problem solving- Complex

- Type of problems- Special Problems

Pay for Job

- Special Problems

•Responsibility- Authority

- Success/Failure- Freedom to act

Others

CompareCompareCompareCompare

Equity

•Job Size

Others

Outside

What to Pay?

• Pay for Service• Pay for Job• Pay for Competency• Pay for Performance

• Pay for Performance

Exercise: Which ones does your company use for Pay?

Pay For SERVICE

“He has 20 years experience: 1 year of bad experience

repeated 20 times”

Pay for SERVICE

• Loyalty (relevant years of service)This consideration may be rewarded in the following manner :-

Descriptions of performance Years in Position

Compa Ratio

Consistently 10 years of competent performance in the position

10 1.43-1.50

9 1.36-1.42

position

8 1.29-1.35

7 1.21-1.28

6 1.13-1.20

5 1.06-1.12

4 1.00-1.05

Pay for SERVICE

• Seniority (career level on the professional career level)

We do not recommend that years of service(Seniority) in the organization be rewarded directly. Years of service must contribute to performance improvement or must lead to structural and content change of the position.

change of the position.

In both cases the recognition can be systematically rewarded as explained earlier.

Pay For JOB

JOB DESIGNDocumentation

District Engineer, TNB

Duties and Responsibilities

If stated as Accountabilities then the job must produce :

Control, operate and maintain the District Distribution System

Ensure uninterrupted supply to consumers in the district by operating the District Distribution System.

Plan and design the High voltage system

Ensure availability of adequate supply for future needs of industries in the district by planning and designing the High voltage

Manage major supply projects to customers in the district.

Ensure satisfaction of the major customersin the district by managing supply and Distribution.

Supervise all technical staff in the district.

Ensure high performance and Productivity of technical staff by adopting proper human resource management methods on selection, training, coaching, counselling and motivation.

voltage system planning and designing the High voltage System

Results Driven

Activity vs.

Accountability

Exercise: Results Description

Key Result

Key Activities KPIs

1. 1.2.3.4.

1.2.3.4.

2. 1.2.3.4.

1.2.3.4.

3. 1.2.3.4.

1.2.3.4.

4. 1.2.3.4.

1.2.3.4.

Key Results Major Supporting Actions Performance Indicators

1. Ensure achievement of targeted production volume

•By monitoring production performance and taking corrective actions•By analysing production downtime and introducing improvements•By thorough preparation for introduction and implementation of new models and variants

•Timely production targets•Productivity ratios•Downtime•Implementation schedule•

General Manager, Manufacturing

2. Ensure achievement of product quality targets

•By reviewing quality performance results and identifying non conformance and undertaking corrective actions•By analysing customer feedback and taking corrective actions•By undertaking on-line and off-line continuous quality improvement programs and activities•By undertaking education and re-education programs

•Quality index•Defect occurrence•Non-conformance to established standards•Demerit points

3. Ensure safe and healthy operating environment

•By incorporating safety and health features into infrastructure design and development•By creating awareness of safety and health among employees through programs and campaigns•By constant monitoring of safety and health standards through working committees•By developing and implementing

•Accident rate•Health standards•Operation audit findings

•By developing and implementing occupational health programs

4. Ensure competent, motivated and productive manufacturing workforce

•By developing and implementing on-the-job training•By developing and promoting effective communication with employees and union•By ensuring continuous development and upgrading of skills•By providing appropriate recognition and rewards for high performance•By promoting teamwork through QCC and 5s activities

•Productivity ratios•Turnover rate•Employee morale•Team activities•Strikes / disciplinary actions

5. Enhance operating efficiency and productivity

•By ensuring effective and efficient maintenance of plant, machinery and resources•By reducing wastage and eliminating pilferage•By reducing and managing indirect overtime•By managing utilisation of consumables and materials

•Operating efficiency standards•Cost per unit•Wastages and losses

materials

6. Timely execution of projects

•By undertaking effective planning and provision of resources•By monitoring implementation and progress of projects•By managing project costs•By developing effective project teams

•Timely completion of projects within cost allocation

Salary Practice Analysis of Executive Director Positions

Market Base Salary Practice of Executive Directors

80,000

100,000

120,000

Monthly Base Salary (RM)

Median

y = 7333.3x - 53742

20,000

40,000

60,000

8 9 10 11 12 13 14 15 16 17Market Reference Job Grade

Monthly Base Salary (RM)

Median

What is Market Reference Job Grade?

Market Reference Job Grade is an observed cluster of similar size jobs.

Why Market Reference Job Grade is Needed?

Job comparison using job titles would be too rudimentary.

Directors are rewarded for responsibilities and accountabilities, therefore remuneration system must be closely linked to job size which

reflects the level of responsibilities and accountabilities.

Market Salary Practice Line

Determination of Market Salary Practice

Market Reference Job Grade

Job Point Range

How Market Reference Job Grade is Determined ?

Job Descriptions Organisation Structure

Current Company Grading Structure

Business Complexity

Job evaluation

Grading Structure

Revenue/Capital Employed (Company Size)

Financial Indicators (Company Size)

Complexityevaluation

Results

Competency

How job evaluation is conducted

ResultsCreation

Problem Solving

The ranking methodThe ranking method

• Jobs are considered as a whole

• Reporting relationships or nature of functions or some discernible factors are applied

Chief Executive

Production Manager

Finance ManagerSales Manager

Sales Executive

Production Executive

Accountants

The job classification methodThe job classification method

Whole jobs are grouped together on the basis that they seem to be equivalent in size.

Chief Executive

Production Manager

Finance ManagerSales Manager

Centre

Production Mgr X

Production Mgr Y

Production Mgr Z

Planning, budgeting and project finance

Management accounting

The factor comparison methodWhat are relevant factors?

• Know-how- Skills

- Experience- Managerial skills-expertise

- Qualification

• Problem solving- Job complexity

- Freedom to think- Nature of problems

- Job challenges

• Responsibility- Accountability

- Freedom to act- Limits of authority- Size of operation

The factor comparison method The factor comparison method -- continuedcontinued

Factors are measured by comparing one against the other.

Knowledge Responsibility Complexity

87654321

A = 10 + 9 + 7 = 26B = 7 + 5 + 10 = 22C = 3 + 1 + 3 = 7

The point factor methodThe point factor method

• For each factor a scale is developed.

• The factors chosen are tested for reliability and validity.

The fundamental job factors are :-

–Know-how

–Problem solving

–Accountability (for results creation)

ResultsCreation

Competency

Problem Solving

Point Factor Method Point Factor Method --Job EvaluationJob Evaluation

• Job Evaluation is a system for rating jobs logically and fairly

• Weber’s Law states that job measurement can be achieved up to an accuracy level of 15%

• The number pattern used for measurement of jobs is a

• The number pattern used for measurement of jobs is a 15% gap scale, i.e.

57 66 76 87 100 115 132 152 175 200

Most Consultants use these universally accepted job measurement principles

Job Factor : Competencies

• Competency includes every kind of capability, skill and ability that is necessary to produce the key results of the job at an acceptable level.

• It does not matter whether the competency is acquired by

• It does not matter whether the competency is acquired by formal training in an institute of higher learning or by working on the job and becoming capable through experience

• Competencies can be expressed either by depth(specialization) or breadth(generalization)

Levels of Competency211218401600

Level 11

Exceptional MasteryUnique mastery in a scientific discipline or professional mastery of organisational and institutional systems.

140012161056

Level 10

Recognised AuthorityProfessional MasteryRecognised authority outside one’s organisation in a particular field or mastery of integrative mechanism in a broad area.

920800700

Level 9

Professional Mastery / SpecialistKnow-how at a high levelAn authoritative source of knowledge within the organisation. These jobs require accumulated know-how through extensive experience in a particular field of study. Alternatively, these jobs require broad practical knowledge of a variety of concepts and models necessary to engage in goal directed effort involving complex problem situations.

608528460

Level 8

Seasoned Professional level of know-howJobs requiring specialist know-how that can be obtained only by years of experience in the relevant field of knowledge. These jobs require extensive experience in having used concepts covering a broad area of knowledge in order to resolve problems.

400350304

Level 7

Senior Professional level of know-howAt this level jobs require extensive knowledge covering multiple levels of principles and theoretical models in a particular field or functional areas..

264230200

Level 6

Professional level of know-howThis category of know-how ranges from knowledge of principles and concepts to operational knowledge of application of principles and concepts.

175152132

Level 5

Basic Principles and Theoretical Models (Junior Professional)Jobs at this level require knowledge of basic principles and theoretical model that is normally gained through formal study.

11510087

Level 4

Sub-Professional know-howThis is the know-how level of sub-professionals. Usually 2 - 3 years of study beyond basic schooling is necessary to acquire the competencies involving the required concepts and theoretical principles. Alternatively this level is characterised by several years of working experience to resolve problems

766657

Level 3

Vocational SkillsThis category of know-how is usually referred to as vocational skills. Jobs at this level require procedural knowledge which is provided by either job experience or through vocational training.

504338

Level 2

ProceduresJobs at this level require knowledge of work routine and experience in using simple tools, equipment and machines.

332925

Level 1

Basic EducationThe lowest level of know-how which is largely basic education and on the job instruction of work routines.

Job Factor : Problem Solving Explanation

Problem solving is the application of knowledge required to identify and resolve problems.

There are essentially two dimensions to problem situations :-

1. the extent to which the problem situation is covered by set procedures, established standards, company policies and principles and

procedures, established standards, company policies and principles and more generally by guidelines and goals orientation.

2. the extent to which the job encounters similar problem situation, differing situations or situations requiring constructive thinking, evaluative judgement or situations requiring the development of new concepts and generalisation.

Levels of Problem Solving

528460400

Level 9Strategic Direction

This is the highest level where the job holder is free to engage in any form of problem solving constrained only by the general rules ofconduct, cultural norms and business philosophy . Jobs of this nature are usually engaged in adaptive thinking of a very high leveand in applyingnew and imaginative approaches .

350304264

Level 8Broad Policy Development

This level of jobs engage in problem solving situations with the aim of achieving ultimate goals. The job holders are concerned about achieving goal direction, and they are guided by the operating philosophy . A large part of these jobs involve adaptive thinking of ahigh order.

230200175

Level 7Broad Policy Implementation

These jobs are guided by broad policies . However, the problem solving is directed at achieving specific objectives by adaptive thinkinThe “What” and “How” i.e. problem definition has to be worked out.

152132115

Level 6Defined Policy

This level of jobs are guided in problem solving by clearly defined principles and available policies . The nature of problems encountered are such that the “what is” is clear, and a certain degree of adaptive thinking is required to determine solutions.

115 encountered are such that the “what is” is clear, and a certain degree of adaptive thinking is required to determine solutions.1008776

Level 5Principles

These jobs engage in problem solving based largely on standards available or principles set . Where procedures are available, they are usually unspecified allowing discretion. The nature of the problems encountered are usually resolved by applying learned solutionsre very little deductive and extrapolate thinking is required.

665750

Level 4Process / Standards

These jobs solve problems by the application of procedures and precedents . The nature of the problem presents issues that require onto search for the answer from among several known alternatives.

433329

Level 3Strict Standards

These jobs solve problems by the application of procedures and precedents . The nature of the problem is specific and one has to choobetween defined solution alternatives.

252219

Level 2Procedures

This level of jobs are usually “told” how to solve their problems and they resolve problem situations working with standard instruction

161412

Level 1Routines

These jobs follow detailed instructions and strict rules of conduct . The job holder is likely to be resolving problems engaged in repetitive reaction to problem situations where one has to choose from a given set of solutions.

Job Factor : Results Creation Explanation

This is the element of the job that can be best described as “the accountability for actions and for the consequence of actions taken”.

The more freedom there is in the job to take actions and the more impactthe job has on end results the greater the Results creation element.

the job has on end results the greater the Results creation element.

For example, the job of a General Manager of a business unit can beconsidered as having more impact on end results than the job of aDepartment Manager of the business unit.

Levels of Results Creation

1056920800

Level 9Strategic Direction

Visionary.

700608528

Level 8Broad Policy Development

Very general guidance from the highest level of the enterprise or organisation. These jobs have a higimpact on end results.

460400350

Level 7Broad Policy Implementation

These jobs are subject to broad policies and there are general guidelines from the highest level of the enterprise or organisation

304264230

Level 6Defined Policy

At this level of Freedom to act, the jobs are subject to functional policies and goals.

200175152

Level 5Principles

This level of jobs are subject to specific policies and theyare also subject to general practice of the functional area.

132115100

Level 4Process / Standards

These jobs are subject to well defined policies and procedures . Results produced are subject to review by Superior.

877666

Level 3Strict Standards

These jobs are subject tostandardised work practices and procedures. Generally supervision over performance is by close review of progress and results.

575043

Level 2Procedures

These jobs are supervised closely byinstruction and prescription of work routine.

383329

Level 1Routines

This level of jobs are subject to detailed work routines and there is little or no room for change.

1425409209700109209+Executive 1

No Job Title Results Creation

Problem Solving

Competency Total Job

Points

Job Grade

Level Points Level Points Level Points

Job Evaluation Results

The positions of Executive Chairman and Executive Directors were evaluated based on the Role and Accountabilities as designed by Consultants

1425409209700109209+Executive Chairman

12148652883508+6088Executive Directors

No. Positions/Company Grade

CompetencyProblem

SolvingResult Creation

TotalPoints

Mkt. RefGradeLeve

lPoints Level Points Level Points

1. Executive Chairman 9+ 920 10 700 9 920 2540 14

2. Executive Director 8 528 8+ 350 8 608 1486 12

3 Executive Director 8 528 8+ 350 8 608 1486 12

4 Non Executive Directors 8 528 8 304 7+ 460 1292 11

5 GM, Asia Pacific Centre Sdn Bhd 7 350 7+ 230 6 264 844 9

6 GM, Marketing 7 350 7+ 230 6 264 844 9

7 GM, Technical & Quality Assurance 7 350 7+ 230 6 264 844 9

Job Evaluation Results

7 GM, Technical & Quality Assurance 7 350 7+ 230 6 264 844 9

8 GM, (Sepang) Sdn Bhd 7 350 7+ 230 6 264 844 9

9 GM, (Niaga) Sdn Bhd 7 350 7+ 230 6 264 844 9

10 GM, Security Services 7- 304 7 200 6 264 768 8

11 GM, General Ops 7- 304 7 200 6 264 768 8

12 GM, Corporate Communications 7- 304 7 200 6 264 768 8

13 GM, (Technologies) Sdn Bhd 7- 304 7 200 6 264 768 8

14GM, Agriculture-Horticulture SdnBhd

7- 304 7 200 6 264 768 8

15 GM, Human Resource 7- 304 7 200 6 264 768 8

16GM, Sports UnitSdnBhd

7- 304 7 200 6 264 768 8

17GM, Mgmt & Technical Services Sdn Bhd

7- 304 7 200 6 264 768 8

18 GM, Public Relations 7- 304 7 200 6 264 768 8

Market Salary ScaleJob

PointsMkt Ref

GradeGeneral

CompetenciesProblem Solving

Freedom to Act for Results

General Market

Q 1 Med Q3

4201-above

16o Ultimate integration through the provision of enterprise philosophies

Philosophical and strategic integration of very large multibusiness global enterprise

Achievement of enterprise philosophy objectives

62,100 69,200 88,600

3301-4200 15

o Business integration of global enterprise

Guiding strategic integration of very large multibusiness global enterprise

Achievement of enterprise goals and philosophy objectives

50,600 56,600 71,900

2501-3300

14 o Business integration of very large multibusiness enterprise

Guiding strategic integration of complex very large multibusiness

Achievement of enterprise objectives and goals

41,300 46,200 58,400

1801-2500

13 o Enterprise integration and multibusiness sector leadership

Guiding strategic integration of complex issues large multibusiness unit(s)

Achievement of enterprise business objectives and business goals

33,600 37,800 47,400

1481-1800

12 o Strategic integration of the enterprise

Managing strategic integration issues of large business unit(s)

Achievement of longer term enterprise goals

27,400 30,900 38,500

1181-1480

11 o Strategic integration of the operations of large business unit of several units

Resolving strategic integration issues and creating conditions for cross functional cooperation.

Achievement of business objectives and strategies

22,400 25,200 31,300

JJob subject to broad goals & broad policies Involved in determining key results to be achieved by the organization both long term and strategic results

Strategic business management capability or comprehensive integration of large but relatively homogenous business units

Management of conceptual direction and achievement of goals and business objectives within very broad guidelines and resource constraints

18,200 20,600 25,400

Head of Business Area

Results Creation (Freedom to Act)

Problem Solving

Competency

350304

230200

400350

304Sr. Mgr. Sr. Mgr.

Customer 18

Sr. Mgr. HR & Admin

Sr. Mgr, Training

Snr. Mgr. Dist.

Job grade as it should be Evaluated new grade

Sr. Mgr. Service

Sr. Mgr. Sales

Sr. Mgr. Product

Customer Serv. & Quality

Alternative to Job Evaluation

1. Obtain Consultant’s report2. Match internal jobs (+salaries, between 2-5 yrs

in the job) to Consultant Report’s Grades and Points System using Mid-Point salary as the reference point

reference point1. E.g.: Admin Executive, RM2,300 -> Grade 3, Mid-

Point (450 points); assign 450 points2. Benchmark about 20%-30% of the jobs

3. Cluster or Slot remaining 70% of jobs according to Grading Scale based roughly on 3 factors:

1. Competency, Problem Solving, Results Creation

Pay For PERFORMANCE

Behavior-based

Knowledge/Skill based

Trait-based

Which system should we use?

Refer: Which Performance

Management System should we use?

Results-based

Managing Performance = Managing Expectations

What’s YOUR expectation?

Activity based

Compa Ratio Table

Use this if your company: • Pays for Performance, and • Pays for Job rates

Def:Mid-Point = Mid Point of Pay Grade

Grade E2

Min RM2,000

MID RM2,500

Max RM3,000

Compa Ratio Analysis – An Indicator of Salary Position

Compa Ratio (CR) =

Actual Salary ÷ Mid-Point Salary of the Salary Range

75th Percentile

Job Points

75th Percentile

CR = 1.00

CR = 1.30

CR = 0.70

Incumbent Mkt Reference Job Grade

Mid Point Salary for the Market Job

Current Monthly

Base Salary

Compa Ratio

ABC 2 RM2,6000

RM2,600

Incumbents’ Salary Analysis

Incumbents’ monthly base salaries compared with mid-point salary of the recommended salary range :-

Hj XYZ 2 RM2,600

RM2,750

GHI 2 RM2,600

RM2,400

This job grade represents the measured “job size”based on current job accountabilities

Compa Ratio Table

< 0.7 ≥0.7 -≤0.9

>0.9 -<1.1

≥1.1 -≤1.3

Compa Ratio Table

< 0.7 ≥0.7 -≤0.9

>0.9 -<1.1

≥1.1 -≤1.3

Compa Ratio Table

< 0.7 ≥0.7 -≤0.9

>0.9 -<1.1

≥1.1 -≤1.3

3 9 7 5% 4 3

Compa Ratio Table

< 0.7 ≥0.7 -≤0.9

>0.9 -<1.1

≥1.1 -≤1.3

5 15 12 9 8 7

4 12 9 7 5 3

3 9 7 5% 4 3

2 6 4 2 1 0

1 4 2 0 0 0

• Exercise:• Determine your pay grades and salary points

(internal or external benchmark?)• Draw your Compa Ratio Table

Employee Distinction?

< 0.7 ≥0.7 -≤0.9

>0.9 -<1.1

≥1.1 -≤1.3

5 9 8 7 6 5

4 8 7 6 5 4

3 7 6 5% 4 3

2 6 5 4 3 2

1 5 4 3 2 1

Employee Distinction?

< 0.7 ≥0.7 -≤0.9

>0.9 -<1.1

≥1.1 -≤1.3

5 20 15 12 8 5

4 18 12 9 5 3

3 9 7 5% 4 3

2 1 1 1 0 0

1 0 0 0 0 0

Employee Distinction

Average Rating

Rating Multiply Factor

Example Rating

Example Increme

> 4.1 5 2 4.2 8.4%

> 3.3 – 4.1 4 1.2 3.5 4.2%

> 2.3 – 3.3 3 0.75 2.8 2.1%

> 1.3 – 2.3 2 0.5 1.8 0.9%

≤ 1.3 1 0 1.0 0%

Job Holder’s Salary Determination Model

Performance Rating

Descriptions

Rating

Distinguished 5

Commendable 4

Competent 3

Adequate 2

Step 1Descriptions of

performanceYears in Position

Salary Range

8 32,756 –33,740

7 31,801 –32,755

Step 2Personal

Contribution Level

Rating Recognition (%

increment)

Unique AuthorityThe individual is a recognised industry leader

Step 3

Adequate 2

Entry zone / unsatisfactory

6 30,876 –31,800

5 29,976 –30,875

4 29,101 –29,975

3 26,000 –29,100

industry leader in the field.

SignificantThe individual brings market-recognised characteristics to the job.

Insignificant 1 0%

Job Holder’s Salary Determination

The significant compensable elements of the three incumbents are linked below showing the related salary decision :-

Incumbent Mkt Ref. Job Grade

Current Monthly Base Salary

Mid Point Salary

ABC 11 RM RM

Salary

27,500 1.05

Incumbent’s Performance

RatingCurrent Sal. CR

3 1.05

Step 1

26,000 –

Yrs in Pst’n

Loyalty

Min Sal.Level

Step 2

%Increase

PersonalCharacteristics

Step 3

ABC 11 RM27,500

RM26,000

XYZ 11 RM27,500

RM26,000

DEF 11 RM27,500

RM26,000

27,500

28,875

27,500

26,000 –29,100 (current salary already within

the range)

Employee Distinction

Group I

(Talent Pool)

Group II

(é Potential)

2 3 4 5

(Talent Pool)(é Potential)

Group III

(é Performance)

Group IV

(Counseling)

Curse of the Bell Curve

‘A’ Staff

‘B’ Staff

‘D’ Staff

‘E’ Staff

‘C’ Staff

Pay For COMPETENCIES

Position: SecretaryResponsibilities + Tasks + Activities

Personal Competencies Differentiating Competencies

•Typing•Manages communications•Keeps short-hand notes•Makes appointments

•Pleasant•Accurate•Is able to take notes on shorthand and typing memo effectively•Presentable

•Appearance

•Proactive•Initiative•Independent•Integrity (trust)•Creative•Resourcefulness•Always excel

http://totallyunrelatedrandomanddebatable.blogspot.com/The Job Person Characteristics The Superior Performer

appointments•Uses the computer•Filing•Takes minutes•Follow-up•Makes coffee•Keeps secrets•Drafts letter•Screens calls

•Behaviours•Good manners•Courteous•Diligent

•Unwavering dedication and commitment•Ability to make simple decisions•Sensitive to people•Positive attitude

Competencies

The appointment of a Senior Manager - an illustration

Selection criteria of the past

10 yrs work experience

I am an expert

I have to gain

Present Selection Criteria

Selection Criteria for the Future

10 yrs work experience

I am able to help others in doing things right

I enjoy contributing as a

Less than10 yrs work experience

I can get others to agree on what is right

I enjoy having to get

Knowledge

Skills

Self Concept

http://totallyunrelatedrandomanddebatable.blogspot.com/This model provides clarity on job related competencies.This model provides clarity on job related competencies.

I have to gain respect of others

Aggressive or submissive

• Personal Aggrandizement

• Excessive use of position power (status & authority)

I enjoy contributing as a team player to what is right

Positive and proactive

•Achievement & social power

•Use of technical knowledge & power of persuasion

I enjoy having to get others to determine what is right

Positive, enthusiastic and proactive

Resourceful power (persuasion, influencing, reasoning, concern for personal impact)

Social Role

Traits

Motive

Skills & Knowledge

Social Role

Job vs Person Match: District Engineer

Mr. AMr. A Ms. BMs. BM.Eng.10 years as an engineer in Tech.Jobs.

M.Eng.10 years as an engineer in Tech.jobs

I like to help my I’ll help if I am

Social Role

Self Concept

Traits

Motive

team achieve.

I like to learn new things

Proactive

I want to do better

I am an expert

Aggressive

I told them what is right

Skills & Knowledge

Social Role

Job vs Person Match: Room Sales person

Ms. AMs. A Ms. BMs. BDiploma in Social Sc. 5 years as an Admin.clerk

Diploma in Social Sc. 5 years as as waitress

in a hotel

I like to meet I don’t like

Social Role

Self Concept

Traits

Motive

new people

I like to learn new things

Assertive

I want to do better

I don’t like injustice

I am always unlucky

Aggressive

I told them what is - right

Superstar Competency Model

• Exercise: Develop Your Own “Superstar” Competency Model

Competency Target Setting

1. Initiative2. Teamwork3. Problem Solving4. Leadership5. Integrity

5. Integrity

What’s the problem here?

Competency Target Setting

Initiative1. Minimize problems quickly without needing to

be asked2. Seeks personal growth and professional self-

development

development3. Doing more than is required/expected in a job4. Seeks new and improved solutions and

approaches to completing assignments 5. Looks for opportunities to help others and team

• Exercise: Competency Dictionary

• (Refer to Workbook for examples)

Competency Standards

3 Meets behavioral standards consistently. Is a good role model for others.

2 Meets behavioral standards some of the time. Needs improvement.

time. Needs improvement.

1 Does not meet behavioral standards. Require counseling or disciplinary actions.

Exercise: Competency Standards

• The Specialist Career Ladder

Career Management

A professional of the past The new career professional

Where is my job

Manager ManagerSeasoned Professional

I need an interesting career

Asst Mgr Asst Mgr

Executive

Senior Professional

Developing Professional

Developmental Executive

SCL: Specialist Career Ladder

Consultant (4)

Principal Consultant (1)

Associate Specialist (2)

Specialist (4)

•Telco, •Outsourcing, •Aerospace, •Biotech,

Consultant (4)

Principal Consultant (1)

•Digital media, •Animation,•M&A•Financial forensicsAssociate Specialist (2)

Specialist (4)

General incentives & privileges:a. Extra monetary incentiveb. Official Specialist / Consultant job title.

General qualifying/re-qualifying criteria:a. Meet the competency criteriab. Performance min B, PEDc. Min. 40 training hr/year

c. Higher external training subsidy limit by company.d. Tie-pin or pine. Certificatef. Additional benefits

c. Min. 40 training hr/yeard. Physical contribution:i Mentoringii Write-upiii Speakingiv Multimedia recordingv R&D publication / Thesis

SALARY STRUCTURES AND SALARY SURVEYS

Part B-2

• Refer to Benchmarking and Surveys (Workbook)

Options to Develop Salary Structure

1. Self – using JE System1. -> match Job Points ranges to Consultant’s scale2. Better internal equity, not externally competitive

2. Adopt Consultant’s structure

2. Adopt Consultant’s structure 1. -> match internal jobs to new structure2. Bad internal equity, externally competitive

Salary Structures

1. Narrow Band – 40%-60% between min/max2. Broad Band– 100%-200% between min/max3. Specialist Ladder

Broad Band

1. Streamlines Hierarchy2. Facilitates Internal

Movement3. Managers have greater

latitude to pay what they

1. No Awareness of External Market Rates

2. May Lead to Inequities3. Lack of Cost Controls4. Severe reduction in

latitude to pay what they want to an employee

4. Severe reduction in opportunities for promotions

VARIABLE AND INCENTIVE SCHEMES

Part B-3

Incentive Scheme Design

Agenda

1. Objective

2. Situation Analysis

3. Target Areas to be improved

4. Current Incentive

5. Recommended KPIs

6. Proposed Incentive Scheme

7. Improving Performance

Objective?

1. What are you trying to achieve?

2. How to measure?

3. What is the Gap?

Target group?

The following positions are eligible to participate in this scheme:

Situation Analysis?

1. Retention?

2. Working environment?

3. The current basic pay?

4. Teamwork?

5. Supervision/Leadership style?

6. Attitude?

7. Turnover issues?

8. Absenteeism?

Target areas to be improved?

1. Increase/Decrease the basic pay?

2. Fixed costs?

3. Incentives tied to… ??

4. Absenteeism?

5. Quality improvement?

6. Easily understood by employee?

Current incentives?

Recommended KPIs to be incentivised

Output Skill (Proficiency) Behavioural (Attitude)

•Manpower productivity •Operational Cost•Safety and Environment

•Job Specific Skills •Punctuality•Absenteeism/Attendance•Teamwork

•Quality (e.g. Defect/unit)•Volume

•Turnover

Proposed incentive scheme

1. Fixed Salary Proportion (Fixed Personal Income, Variable Team Bonus)

Total Payout

= Fixed Quantum + Team Based Bonus

Example:

1. Budgeted incentive = 5.8 months of basic payroll

2. Fixed Quantum = 0.4 months (for example) [4.8 mths ÷12]

3. Monthly Total Payout = Basic Pay + Fixed Quantum

= RM500 + 0.4 months

= RM500 + RM200

= RM700

4. Amount available for bonus = 5.8 months - 4.8 months

= 1.0 month

Team Performance

Production Operator Team Leader Group Leader

Annual Bonus Incentive Matrix

Performance Rating

5 1.50 months 2.00 months 2.50 months

Annual Bonus Annual Bonus Annual Bonus

Monthly Incentive Payout Matrix

2. Two-tier Multiplier (Variable Personal Income, Variable Team Bonus)

Total Payout =

Basic Pay + Monthly Personal Target Achievement + (Personal Target Achievement x Team Performance Multiplier)

Personal Rating

5 1.2 months

4 1.0 months

3 0.8 months

2 0.5 months

1 0.0 months

Monthly Incentive

Monthly Basic Pay (RM)

Example: Production Operator

Personal Performance

Rating 500 550 600 650 700 750 800

5 1,100 1,210 1,320 1,430 1,540 1,650 1,760

4 1,000 1,100 1,200 1,300 1,400 1,500 1,600

3 900 990 1,080 1,170 1,260 1,350 1,440

2 750 825 900 975 1,050 1,125 1,200

1 500 550 600 650 700 750 800

Monthly Basic Pay (RM)

Team Leader Group LeaderProduction Operator

Personal Rating

Monthly Incentive Monthly Incentive Monthly Incentive

5 4 3 2 1Team Performance

(in months)

5 4 3 2 1

5 2.4 1.8 1.2 0.6 0

4 2 1.5 1 0.5 0

3 1.6 1.2 0.8 0.4 0

2 1 0.75 0.5 0.25 0

1 0 0 0 0 0Per

3. Team Ratio Plan (Team-based Income, No Annual Bonus)

Total Payout =

Basic Pay + Monthly Incentive Payout (No Annual Bonus)

Production Staff Team Leader Group LeaderMonthly Incentive Payout Matrix

Team Rating

Production Staff Team Leader Group LeaderMonthly Incentive Monthly IncentiveMonthly Incentive

Monthly Incentive Payout Matrix

Team Monthly Basic Pay (RM)

Example: Production Operator

3. Team Ratio Plan (Team-based Income, No Annual Bonus)

Team Performance

Rating 500 550 600 650 700 750 800

5 1,500 1,650 1,800 1,950 2,100 2,250 2,400

4 1,250 1,375 1,500 1,625 1,750 1,875 2,000

3 1,100 1,210 1,320 1,430 1,540 1,650 1,760

2 875 963 1,050 1,138 1,225 1,313 1,400

1 500 550 600 650 700 750 800

Improving PerformancePerformance Improvement Area

Intervention Methods Effectiveness of Direct Incentive Measures

Skill Deficiency •Off site Training•Job redesign•On-the-job training•Process Redesign

Performance Punishing •Review performance management processes•Study on supervision style of Team Leader•Remove punishment

Non-performance •Proper performance monitoring NoNon-performance rewarding

•Proper performance monitoring process•Arrange positive consequence

Coordination & Teamwork

•Communication of clear direction and goals•Shared Accountabilities•Focus on Team Competencies

Partly

Behavioural •Communication of clear behavioural indicators•Focus on Behavioural•Coaching and Counselling

Partly

Supervision Style •Leadership styles of team leaders•Regular tracking on morale of team members

Yes but not for team members

• Refer Sales incentive design examples

Dangers of Direct Incentives

1. lessen internal motivation, 2. switch to mercenary mode, 3. do something and do not do something else, 4. bribe and fraud culture, 5. easier for competitors to recruit,

5. easier for competitors to recruit, 6. lessen teamwork & helpful culture, 7. less and less impact for same value, 8. mockery of base salary and employment

contract, 9. rebellion from non-incentivised staff, 10.end up incentivising everyone for everything?,

Non-Monetary Rewardsand Benefits

and Benefits

Reminder…

Reality #1

Cash is King

Reminder …

Reality #2Tangible C&B

Attraction

Reminder …

Retention

Reminder …

Tipping Point for Attraction/Retention

Benefits Analysis and Comparison

Total Remuneration Composition

45% 6% 49%12 - 16

Total Remuneration Composition for Executive Director & Executive Chairman Average Annual Total Remuneration

Value (RM)

RM 1,016,000

46% 12% 42%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Percentage

10 - 11

Base Salary Fixed Cash Allowance Benefits-in-kind

RM 535,000

• Refer Benefits comparison Table

Market Practice on Fixed Cash Allowance for Executive Director and Executive Chairman

Housing Allowance

Attendant Allowance

Board Allowance

Director Fees

Contractual/Regular Bonus

These Board of Directors related Allowances/Fees are not a common practice among the Companies as Base Salary is provided.

Fixed Cash Allowances

0% 10% 20% 30% 40% 50% 60%

Other Allowances

Cost of Living Allowance

Entertainment Allowance

Transport Allowance

Housing Allowance

% of Companies

Benefits-in-Kind

Benefits-in-kind Practice for Executive Director and Executive Chairman Positions

Group Personal Accident InsuranceMedical benefits

GratuityRetirement SchemeAdditional EPF

Stock Option/Profit SharingIncrement

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Leave Passage Club Membership

Car LoanCompany Car Housing LoanBody GuardsDomestic help

Company HouseGroup Life Insurance

Group Personal Accident Insurance

The 51.28% Theory

• Resign = Push + Pull > 51.28%• If staff is Happy:

=> 0 + Pull > 51.28%

Retention

Experience Swing Ex

Oppose

Retention 1: Experience

Loyalty = Experience vs. Expectations

Solution Strategy: Talent Management Plan

Loyalty 1: Experience• Talent

Management Plan

Philosophy

P/P Grid, SP Table, PDP, Premium,

P/P Grid, Q12, PA, SDP, SP

Selection

PhilosophyOJT, Mentoring, Big-5, LP, PDP, SDP, Projects,

Q12, C&B, ACDP, SCL, Transfers, Events, Recognition

PA, SDP, SPDevelopment

Motivation

Evaluation

Loyalty 2: Swing

Loyalty = Best alternative at the current moment until I find another alternative

Solution Strategy: Improve your Talent Management Plan, Try Your Best, or Live with It

Loyalty 2: Swing

Swing Talents are “loyal” because:• Individual Relationships• Convenience (at that point in time)• Contractually tied-up• Direct Incentives*

• Direct Incentives*• No better alternative• Subordinates• No known alternative• CV friendly

Post-Recession

Retention

Experience Swing Ex

Oppose

Post-Recession

Swing Loyalty: Try Your Best…

1. Over Promote2. Loans3. Spot Bonuses4. Block recruiters5. The Spouse

9. “Position” the competition

10.Sell the Dream11.Give them a Best

Friend

5. The Spouse6. Toys7. Glorified Titles8. Forced Ambassador

Friend12.Internal Trainer

Talent Strategy: C&B

1. Eliminate Staff Awards2. Eliminate Staff Trips3. Eliminate HOD trips4. Remove Salary structure

limitations for TP

8. Additional Profit Sharing points for TP

9. ↑ Pay for Performers, ↓ pay for Non-Performers

10.Additional % during

5. Premium Group Pay6. Year-round

promotions/increment7. Spot Bonus Pool

10.Additional % during annual increments

11.Special Allowances12.SCL Allowances13.Flexitime

• Exercise: What ‘Caring’ C&B policies do you have to attract and retain talent?

Values Driven C&B

1. Performance2. Differentiation3. Caring4. Non-tangibles & Segmentation

4. Non-tangibles & Segmentation

Demographic Segmentation - General

Veterans (Pre-Boomers)1934-1945

BoomersGen Y

Boomers1945-1960

Gen X (Cusper, Buster)1960 - 1980

Gen Y (Millennials, Netster)

Demographic Segmentation - others

1. Women, Working Mothers2. Youtube generation3. Working retired4. Social Activists

4. Social Activists5. Work/Life balancers6. Industry (ICT, Advertising, Engineer,

Accounting, Lawyer, etc.)

What needs work?Im

Familiarity with Tasks

Training Opportunities

Attractive Location

For people like me

Fun place to work

Innovative

Current Attractions

Weak Strong

High Salary

Career Opportunities

Overseas Opportunities

Innovative company

What needs work?Im

Attractive Location

For people like me

Fun place to work

Innovative

Current Attractions

Weak Strong

High Salary

Overseas Opportunities

Innovative company

Caring (1/2)

Loans/Subsidies

LactationRoom

Allowance/COLA

Uniform

Staff Discounts

ExtensiveTraining

FlexitimeWork/LifeBalance

Free Carpark

Subsidized Lunch

Caring

Caring (2/2)

Add. Maternity

LeaveFree IT Classes

PaternityLeave

Transfer/Secondment

InternalSelection

Classes

Discount PnB

EmergencyLoan Study &

Exam Leave

Library &Magazines

Sub. Yoga/Line Dance

VanTransport

Caring

For Starting Up…Im

For Starting Up…

Current BrandWeak Strong

INTANGIBLE BENEFITS & STAFF MOTIVATION

Part C

ATTRACTING AND POSITIONING

Employer Branding

The real goal of Marketing and Branding

Branding

Understanding our role in the whole scheme of things

• Exercise: Why do we need ‘Branding’?

What is the purpose of Marketing & Branding?

Ultimate Objective of Marketing: “Get more people, to buy more things, more frequently, at higher prices.”

prices.”

Sergio Zyman

“Retention and Loyalty are useless if No Conversion is happening.”

What is the purpose of Marketing & Branding?

“Communication is useless if No Conversion is happening.”

What is the Objective?

1.Comm = Relationship (something like Dating)

2.Comm ≠ Media glitz 3.Comm ≠ ATL/BTL/BwTL/ArTL/FTL

4.Comm ≠ CSR5.Comm = Get more people, to buy

more, more frequently, at higher prices

“Retention and Loyalty are useless if No Performance is happening.”

Loyalty is misleading…

• Heavy Consumption ≠ Loyalty

• Loyalty ≠ Heavy Consumption

• Good Performance ≠ Retention• Retention ≠ Good Performance

So… are we in business for Retention or Performance?

Retention or Performance?

Corporate & Employer Brand

Corporate Brand

Employer Brand

Right Type of People

Why Employer Branding?

Employer Branding

1.Attract2.Retain

Branding 3.Motivate4.Focus

Components of Branding

Positioning, Execution, and Communication

Components of Branding

Positioning

Execution

Communication

Brand Positioning

Segmentation, Targeting, Basics, Differentiators

Positioning

“Hope is not a strategy”

“Hope is not a strategy”John Maxwell

Positioning

• For who? – Segmentation, Targeting• Your Offer? • Key Differentiator?

Two Types of Segmentation for HRM

1. Demographic segmentation2. Talent segmentation

UNDERSTANDING DEMOGRAPHICS

Recruitments of Gen X and Gen Y

Demographic Segmentation - General

Veterans (Pre-Boomers)1934-1945

BoomersGen Y

Boomers1945-1960

Gen X (Cusper, Buster)1960 - 1980

Gen Y (Millennials, Netster)

• Now 4 Generations in the workplace• Events and conditions each of us experience during

our formative years help define who we are and how we view the world.

• Each Generation has different value systems –

Generational Differences In The Workplace

• Each Generation has different value systems –Values drive behavior.

• We need to understand each other so we can value what each generation brings to the team.

• In 10 years, 40% of current workforce will retire.

• X&Y act first, evaluate later – they know more than older generations knew at their age. Thrive in speed and chaos. May think about having multiple careers. – May not Actively Listen to Builders & Boomers, missing

valuable info.• Builders & Boomers – paid their dues, have vast experience &

knowledge.

Generational Thoughts

– May question how much X&Y know, undervalue their quick decision-making, don’t think of them as colleagues and collaborators because assume they’re inexperienced.

– May think X&Y are too impatient –quick to throw out tried & true strategies .

• Loyalty to Co. – Builders & Boomers may value; X&Y may not• Challenge Authority – Builders & Boomers may not, X&Y may.• Work Life Balance: Builders & Boomers may do without, X&Y

may not do without.

Generational Thoughts

• Builders may see Boomers as self absorbed & prone to sharing too much info.

• Boomers may see Builders as dictatorial and rigid.

• Y may view X as too cynical and negative.

• Y may view X as too cynical and negative.• X may view Y as too spoiled and self-

absorbed.• X may view Boomers as being too Politic –

say right thing to right person.

All Generations want:

Work-Life Balance – flexible hours, fewer hours• Younger Generations – may be less ambitious in

traditional terms, less willing to make tradeoffs - family focus.

What Bonds Generations

focus.• Boomers – want time for hobbies or fitness, care for

aging parents, family, start own business.Timely, Constructive FeedbackSense of Community with OthersEffective Projects and MeetingsUse their TalentsEnhance their Skills

Things Research SaysGens Want to be Valued for

• Builders: “Your experience is respected – It’s valuable to hear what’s worked in the past.”

• Boomers: “You are valuable & worthy. Your contribution is unique and important to our success.”

• Xers: “Let’s explore some options outside the box –your technical expertise and is a big asset.”

your technical expertise and is a big asset.”• Y’s: “You will be collaborating with other bright,

creative people – you have really rescued this situation with your commitment.”

What All Generations Need to Do

Seek balance between • building on traditional procedures and • supporting flexibility and creativity

to effectively blend the generations work ethics.• Allow choices• Openly explore ideas

Value different points of view

• Openly explore ideas• Value different points of view • Encourage active listening • Share expertise • Share recognition and appreciation• Value hard work• Build in humor and fun into learning. • Accommodate the needs and values of all generations.

What Generation’s Next?

The Millenniums – They are in secondary school right now…coming out

http://totallyunrelatedrandomanddebatable.blogspot.com/213

right now…coming out soon…in about 10 years or so

Demographic Segmentation - others

1. Women, Working Mothers2. Youtube generation3. Working retired4. Social Activists

4. Social Activists5. Work/Life balancers6. Industry (ICT, Advertising, Engineer,

Accounting, Lawyer, etc.)

Exercise: Who is your target?

Company Segmentation Employer Segmentation

Exercise: Employer Segmentation

Who are your Targets?What do you know about them?

WHAT NEEDS WORK?Employer Branding

Basics & Differentiators

Differentiators

Segments

Targets

Basics

tiators

Demographic Segment: Example Exercise

1. Gen Y2. ICT3. Women

Refer: • GEN Y ranking of

job considerations• 10 non-monetary

benefits to attract and retain top developers

What needs work?Im

Attractive Location

For people like me

Fun place to work

Innovative

Current Brand

Weak Strong

High Salary

Expected success of application

Innovative company

What needs work?Im

Attractive Location

For people like me

Fun place to work

Innovative

Current Brand

Weak Strong

High Salary

Expected success of application

Innovative company

For Starting Up…Im

For Starting Up…

Current BrandWeak Strong

Activity Grid to determine HRM priorities

Increase (↑)What are features/ activities/services to increase?

Create (+)What are features/ activities/services to introduce?

Reduce (↓)What are features/ activities/services to reduce?

Eliminate (-)What are features/ activities/services to eliminate?

Exercise: Activity Grid

Increase (↑) Create (+)

Reduce (↓) Eliminate (-)

THE TALENT & PERFORMANCE MANAGEMENT SYSTEM

Part D

Talent & Performance Management

Philosophy

P/P Grid, SP Table, PDP, Premium,

P/P Grid, Q12, PA, SDP, SP

Selection

PhilosophyOJT, Mentoring, Big-5, LP, PDP, SDP, Projects,

Q12, C&B, ACDP, SCL, Transfers, Events, Recognition

PA, SDP, SPDevelopment

Motivation

Evaluation

Why do we hate Performance

Why do we hate Performance Appraisals?

As an Appraisee

As an Appraisor

Complaints about Performance Appraisals

Mgmt/HR

As an Appraisee

• Bias• Different Standards• Surprise• Subjective

• Subjective• No linkage*• No differentiation• Secretive• No follow up• No control

As an Appraiser

• Cannot remember• Tedious• Subjective• Right targets

• Right targets• Scoring Competencies*• Defensive staff• No $$ to differentiate• Prejudices• Results or Activities

• Flexible or Control?• MBO or Character?• Best Practice or Fit Culture?• Backward or Forward?

Mgmt/HR

• Backward or Forward?• Quarterly Results or Long-term?• No $$ to differentiate*• Perfect System, Bad performance• Recency and Halo effects• Untrained Appraisers

Complaints about Performance Appraisals - Summary

1. Process problem2. Form problem3. People problem

What’s the Difference?

Performance Appraisal Performance Management

Coaching & Counseling

Month 1 Month 12Month 2-11

Performance Planning

Month 12

Performance Appraisal

Month 2-11

What is the OBJECTIVE of a Performance Management System?

• What is the ultimate objective of a Performance Management System?

• ‘Performance’ – achievement, • ‘Management’ – controllable, improvement• ‘System’ – predictable outcome, autorun

• ‘System’ – predictable outcome, autorun

Summary?• A Predictable process to Improve Controllable

Achievements

What’s In Between Planning and Execution?

Budgeting + Planning

Business Model

Succession Planning (Business Continuity)

Talent Management

Differentiation

Performance Management System

What is the OBJECTIVE?

BSC and KPIs

Strategy

Business Model

Business Strategy Execution

Succession Planning (Business Continuity)

Talent Management

Differentiation

Performance Management System

Talent Management

• Performance Management System = Business Plan Implementation

• Succession Planning = Business

• Succession Planning = Business Continuity Planning

• Talent Management = Sustainable Business Performance Management

Sources of Goals and KPIs

• Exercise: List down the sources of Goals and KPIs available in your company:– E.g. Job Description (RDQ)

MBO – Sources of KRAs and KPIs, Targets

1. Department Scorecard [E3], 2. Employee’s Job Description, 3. Department SOP, 4. Department Quality Objectives,

4. Department Quality Objectives, 5. Corrective Action Requests (CAR), 6. Preventive Action Requests (PAR), or 7. Special Projects relevant to the

employee.

Basics of the Balanced Scorecard

Reminder: Why BSC?

• Reason 1: Balanced• Reason 2: Cause-and-Effect

http://totallyunrelatedrandomanddebatable.blogspot.com/www.myCNI.com.my www.OOBEY.com

Revenue

Base Retention

Share Gain Positioning Adjacent Market

New Business

Financial

Customers

Cost Margin

Cause and Effect

Cash Flow Asset

Satisfaction

Learning & Growth

Internal Process

Operational Excellence

Product Leadership

Customer Intimacy

Investment Strategy

Competencies Information Systems Motivation, empowerment,

alignment

Financial

Customers / Distributors

Revenue GrowthProductivityMarket Value

Target Markets

Products/ Services

Channel Strategies

Cause and Effect: An Example

Learning & Growth

Internal Process

Department Operations

Supplier & Alliances

External Involvement

Human Resources

Technology

Information & IntelligenceSystems &

Processes

Financial

Customers / Distributors

Example: 1st Level BSC & KPIs

Profit after Tax. Revenue. Cash-to-cash cycle. Operating cash flow

Customer Complaints. Customer Acquisition Rate. Product Availability. Product Quality & Service. Renewal Annual Subscription. Distributor Rank Achievement. No. of Active Distributor. No. DC/Regional Sales. Distributor with commission

Learning & Growth

Internal Process

Customer Database Availability. Accuracy of Forecast Planning. Continuous Improvement. Response Time to Customer Needs. Perfect Order Fulfillment. Inventory Turnover. Number of Effective Sponsoring Program. On Time Delivery. No. of Effective Training. Number of Effective A&P

% of staff evaluated on Core Competency Framework. % of staff with Career Development Plans. No. of training hours completed per staff. % of staff with access to strategic information. Q12 Index. % staff evaluated on Culture alignment

Leading and Lagging KPIs

Cause and Effect

Goal:Healthy!

What are my Vital Signs?•Blood Pressure?

Pressure?•Temperature?•Cholesterol?•Fever?•Chest Pain?•Dizziness?

Cause and Effect

Also known as:Leading vs. Lagging

Leading vs. Lagging Indicators

Exercise: Leading vs. Lagging

Lagging?

• Monthly Sales• Customer Retention• Project success

Leading?

• Project success • Event attendance• ARPU• Customer Satisfaction• Dealer Satisfaction

Financial“To satisfy our stakeholders, what Financial objectives must we accomplish?”

Customer“Who are our target customers?What is our value proposition?”

Cause & Effect: Strategy

Internal Process“To satisfy our customers, in which internal business processes must we excel?"

Learning & Growth“What capabilities and tools do our employees require to help them execute our strategy?

Top Performers and the ‘No Contribution’ Problem

LaggingHistorical, Outcome, Results, 1st

Level, Usually Financial or tangible, Quarterly and Annually

LeadingCurrent, Indicators, Drivers, 2nd

Level onwards, usually non-financial or intangible, Weekly, Monthly and Quarterly

Developing ‘Driver’ KPIs

Customer Retention % Lagging, 1st Level

Customer Satisfaction Index

Leading, 2nd Level

On time delivery

Time to market for new products

Defect levels, warranty claims

Leading, 3rd Level onwards

What is the Objective?

‘Do-or-Die’ KPIs for CNI• Revenue• ARPU

• Sponsoring

• Sponsoring• Retention

• Commission Plan (BDP)• Product• Corporate Image

• Exercise: What are the Key 1st Level KPIs for your Industry?

• Exercise: Developing your own Leading and Lagging KPIs

B2B/B2G BSC Matching

Revenue

Base Retention

New Business

Financial

Internal Process

Customers

Cost Margin Cash Flow Asset

Operational Product Customer Investment Strategy

Satisfaction

Customer/Client/ Government BSC

RevenueFinancial

Customers

Cost Margin Cash Flow Asset

Satisfaction

Your BSC

Learning & Growth

Excellence Leadership Intimacy Strategy

Competencies Information Systems

Motivation, empowerment,

alignment

Base Retention

New Business

Learning & Growth

Internal Process

Operational Excellence

Product Leadership

Customer Intimacy

Investment Strategy

Competencies Information Systems

Motivation, empowerment,

alignment1. Draw your ‘customer’s’ BSC

2. Match their CP/IP with your CP

3. Identify IPs that support/conflict

Performance Standards

MBO Standards

A Excellent

B Good

C Average

D Poor

E Useless

MBO Standards

A Excellent

B Good

C Average Good

D Poor

E Useless

MBO Standards

A Excellent Excellent

B Good Very Good

C Average Good

D Poor Not Good

E Useless Commit Suicide

MBO Standards

A Excellent Consistently achieved 4 for 3 quarters

B Very Good Higher than planned results

C Good Achieved Planned Results

D Not Good Did not fully meet planned results

E Commit Suicide

Unacceptable performance

Refer: Priority, Targets and Standards

Rating Scale

≥ 105 million kilo of A5

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98 million kilo of A 4

95 million kilo of A3

94 million kilo of A2

��93 million kilo of A1

Performance Planning: KPIs and Critical Goals

• Refer Workbook: Performance Planning Worksheet

Performance Planning and KPIs: Cascading from Company-Department-

Cascading from Company-Department-Individual

E3 – Department BSC

Financial Perspective

Goals Measures Targets CAPEX OPEX

Quality

Innovation

On Time Delivery

Individual Performance

1.0 Key Results

Area (Max 6)

2.0 Goals and

Targets for Q1

3.0 Achievements and

Efforts for Q1

4.0 Merit* 5.0 Rating (Merit x Weight)

6.0 Appraiser

Overall Comments/ Feedback

Cascading

Customer Perspective

Goals Strategies Targets Direct Indirect

Base Retention

Retention

Share Gain Mkt

New Business

E3 – Department BSC

Customer Perspective –Marketing Department

Goals Strategies Targets CAPEX OPEX

Base Retention

Retention

Share Gain

Budgeting

Individual MBO

Employee A – Marketing Executive

KRAs Action Plans

Targets Weight (%)

Class A

Re: Base Retention

Class A Customer Retention

Class B Customer Retention

Competition Crossovers

Start Up

The end of the Beginning

The Wish List

1. Health and Wellness2. Work/Life Balance3. Mobility4. Innovation

4. Innovation

For Starting Up…

1. Get the Business Strategy right2. Link C&B to Strategy (e.g. BSC)3. Clarify the C&B Philosophy4. Strengthen Performance Management System5. Redirect Funds ($$)

5. Redirect Funds ($$)6. Design simple processes7. Develop and Reward focused on Talent groups8. Communicate throughout

Problem with C&B…

“Good news for stockholders can be bad news for other

can be bad news for other stakeholders.”

Gregory Miller, Assoc. Prof., Harvard Business School.

In the end…

• Great Wall of China– humans are the weakest link– bad treatment of staff will lead to weak link i.e.

easier to bribe, easier to con, etc; – bad treatment examples: insulting, lose face,

– bad treatment examples: insulting, lose face, broken promises, no dignity, public criticism, restructure without communication

Other thoughts…

1. Big matters/Small Matters

2. Differentiate of Die3. Define “Talent”

5. Flat Structure?6. The Jerk Boss7. All aspects8. Hire Strict

3. Define “Talent”4. No “Jerk” rule

8. Hire Strict

Summary

Segmented & Targeted Attraction, Retention and Succession

STARS™

End Notes

The end of the Beginning

Are your employees willing to die for you?

Taj Mumbai, 2008 • 31 people died and 28 were hurt

• 1,200 and 1,500 guests escaped

• 11 Taj Mumbai employees died rescuing guests

• Restaurant and banquet staff rushed people to safe locations such as kitchens and basements.

and basements. • Telephone operators stayed

at their posts, alerting guests to lock doors and not step out.

• Kitchen staff formed human shields to protect guests during evacuation attempts

Taj Mahal Palace, MumbaiNovember 26, 2008

Harvard Business Review, December 2011“The Ordinary Heroes of the Taj” by Rohit Deshpandé and Anjali Raina

Taj Mumbai, 2008

• Seek fresh recruits rather than lateral hires.

• Hire from small towns and semiurban areas, not metros.

• Recruit from high schools and second-tier business schools rather than colleges and premier

• Train workers for 18 months, not just 12.

• Ensure that employees can deal with guests without consulting a supervisor.

• Teach people to improvise rather than do things by the book.

rather than colleges and premier B-schools.

• Induct managers who seek a single-company career and will be hands-on.

• Focus more on hiring people with integrity and devotion to duty than on acquiring those with talent and skills.

than do things by the book. • Insist that employees place

guests’ interests over the company’s.

• Have incumbent managers, not consultants, conduct training.

• Use timely recognition, not money, as reward.

Harvard Business Review, December 2011“The Ordinary Heroes of the Taj” by Rohit Deshpandé and Anjali Raina

Thank You.

soft copy of slides:http://totallyunrelatedrandomanddebatable.

blogspot.com/

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