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You Are Invited to Participate...
in the 2013 IT & Engineering Compensation Survey
  
This survey contains 180 IT & Engineering benchmark jobs. More than 1,400 organizations from thirty-one states participated in the 2012 survey.
  
To submit data, open the reporting form, save it on your computer, complete the form, resave it, and submit it to [email protected]. If you wish to use a password for your file, please send it in a separate communication. The reporting form includes general instructions; for complete instructions and job descriptions click here.
  
As a benefit of your Cascade membership, this valuable pay study continues to be free of charge when you submit data. Participating non-members receive a 50% discount off of standard pricing.
  
The survey is open until May 31st with the final report anticipated the end of September.
Compensation Basics
By Jerry Bumgarner, CCP, Vice President, Performance Solutions
Cascade Employers Association
  
Pay Administration Systems - Choices, Choices, Choices
  
Let's take a look at a few of the most common approaches to administering wages and salaries within organizations.
  
Single or Flat Rate System -
  • The same pay rate applies to all employees in a job classification, regardless of performance or seniority.
  • In some instances, there may be a lower training wage for the job.
  • These systems are typically used for hourly union jobs and for elected jobs in the public sector.
  • Pay rates are either based on market data or are the result of labor/management negotiations.
  
Time-Based Step Progression -
  • Individual pay rates are based on longevity in a job with no consideration to individual performance.
  • Pay increases are in fixed amounts and are awarded on a predetermined schedule.
  • When the top step is reached, any future increases are generally based on cost-of-living changes.
  • This type of system is generally used for government jobs (federal, state and local).
  
Performance-Based Step Progression -
  • Individual pay rates are based on a combination of longevity and individual performance.
  • Pay increases are in fixed amounts and awarded on a predetermined schedule if performance is acceptable.
  • When the top step is reached, any future increases are generally based on market wage movement.
  • This type of system is generally used for non-union manufacturing jobs.
  
Productivity-Based System -
  • Individual pay rates are determined based on individual employee productivity/performance.
  • A straight piece-rate system is an approach that includes a base wage rate plus additional pay for output.
  • With a differential piece-rate system, one rate applies up to a standard and a higher rate after the standard is exceeded.
  • These systems are generally found in non-union assembly and manufacturing organizations.
  
Person-Based System -
  • Pay rates are based on each employee's characteristics (knowledge, skill, and competency).
  • Increases are awarded based on the acquisition of greater knowledge, skill or competency.
  • Knowledge-based pay systems typically apply to scientists with specialized knowledge.
  • Skill-based pay systems generally apply to operators trained on a variety of production machines.
  • Competency-based pay systems are typically used for professionals with specified competencies.
  
Merit/Performance Based -
  • Pay rates are determined based on individual employee performance regardless of seniority.
  • Individual increase amounts vary based on employee performance in relation to others.
  • Position in salary range and the salary increase budget are also factors in determining increases.
  • Employers must be able to defend performance appraisal methods in arriving at individual increases.
  
There are many choices. Select the best system by considering your organization's culture, its readiness to link pay to performance, its ability to train employees and track their development, the sophistication of its administrative support systems, as well as whether employees are represented by a union. If you're not sure which system is right for you, call us and we can brainstorm together.
  



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