Leveraging Best Practices Compensation Administration

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Leveraging Best PracticesCompensation
Administration
Presented toLawson Software, Inc. / City of
Columbus, Ohio William Bacote Manager The
Hackett Group March 27, 2008
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Objectives and Expectations

• Examine current process efficiency,
  effectiveness, and structure
• Understand current gaps to best practices, and
  service delivery model considerations through
  examination of Hackett Best Practices
• Begin the development of a best practices
  scorecard

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Best Practices DefinedA Hackett-Certified
Practice is a proven technique that delivers
measurable value

• Aligns with strategy
• Reduces costs
• Improves productivity
• Promotes timely execution
• Enables better decision making
• Leverages existing and exploits emerging
  technologies
• Ensures acceptable levels of control and risk
  management
• Optimizes skills/capabilities of the organization
• Promotes collaboration across the extended
  enterprise

Hacketts Best Practices are certified when there
is a correlation with world-class performance
metrics
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Best Practice Scorecard
No Usage
Strong Usage
Applicable Yes Adoption of the best practice is
in line with current/future business
needs No Best practice does not fit the current
business needs
Coverage High Widespread impact on the
enterprise and/or significant value-add Medium Imp
acts multiple areas, value-add is significant but
less relative to processes ranked as
High Low Impacts a single area of has limited
span of adoption throughout the enterprise
Comments Statements pertaining to the technology
enablement, policy enactment and other challenges
and/or prerequisites associated with improving
the utilization of the Best Practice
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Best Practice Session
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Compensation Administration Process Overview

• Process Definition
• The process of administrating and executing all
  compensation, including hourly, salary,
  commissions, and executive in accordance with
  organizational policies, business practices and
  government regulations
• Major Activities
• Collection, coordination and maintenance of the
  required knowledge, skills, and abilities
• Job credential establishment and evaluation
• Administration of Merit Review Program  
• Job Analysis / Job Evaluation
• Support position and skills pricing
• Establishment, tracking and execution of
  temporary labor pay practices
• Communication and implementation of annual pay
  programs
• Administration and training support for new
  compensation programs  
•  Management reporting specific to Compensation
  administration
• Administration of all compensation including
  
  
  
  
  
• Administration of all fixed and variable elements
  (e.g. base pay, commissions, bonuses, stock
  options, and allowances)
• Administration and execution of hourly,
  salaried, expatriate and executive compensation
• Administration of relocation
• Administration of stock options
•   

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Compensation AdministrationBest Practice Review
Summary Results
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Compensation Administration Best Practice
Assessment
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Compensation Administration Best Practice
Assessment
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Compensation Administration Best Practice
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Compensation Administration Best Practice
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Compensation Administration Best Practice
Assessment
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Compensation Administration Best Practice
Assessment
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Compensation Administration Best Practice
Assessment
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Compensation Administration Best Practice
Assessment
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Compensation Administration Best Practice
Assessment