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Planning your budget? – Create Your Compensation Strategy Now

September 19, 2014 by Melissa Quade
 
Melissa Quade

Now is a great time to start planning for your yearly strategic budgeting meetings. And since employee compensation is often the largest line item in a budget, it will pay big dividends to think through your compensation structure and get the data you need to make informed budgeting decisions, and to back up your budget requests.

Here are some compensation budgeting tips to get you started:

  • Know where you are in the marketplace when it comes to compensation. Now is a good time to focus on collecting the data you require as you prepare for first of the year/end of the year performance reviews. The market has moved a lot in the past two years, and some positions – especially tech positions – are still continuing to outpace the general market. If you think the 3% across the board average applies to your Software Developer, or your QA Engineer, you may want to do some research with more current salary data.
  • Always ask for more than you think you’ll need. It’s always better to have some extra budget to work with, or to use for the unexpected raise request that may be well-deserved, than to come up short.
  • Be strategic with pay increases. Are you giving people increases just for keeping a seat warm (i.e. cost of living adjustments)? Or are you being more strategic with your available dollars and linking pay to performance and results? If your CFO gives you a 3% budget increase for base salaries, are you going to give everyone a 3% raise? What do you think that does to your top performers, when they see Lazy Len getting the same increase they got? Why not give Rockstar Rudy a 5% raise and Lazy Len a 1% raise? If you’re afraid of having the ensuing conversation, then you likely don’t have the right performance management process in place, or you may need some new tools in your management toolbox for having difficult conversations. Either of these we can help with.
  • Better results should result in better rewards, whether that’s cash or some other form of reward that is more meaningful to that employee. Find out what motivates your staff and leverage it to the company’s benefit, creating a win-win possibility.

Having a consultant in your pocket to help with providing expert guidance and data can be very helpful in making informed decisions. A good one can also work as your ally to provide objective recommendations and supportive data to your company leadership.

More Resources

For more tips and information regarding creating a successful compensation structure including, how to have good conversations about compensation, how to use performance reviews effectively, and how paying the right wage can create a successful business check out these latest blog posts:

Compensation Conversations: How to make them better for your managers and employees.
Thanks to the Internet and social media, employees and potential candidates have access to salary information. How do you make sure that your employees feel fairly compensated? It turns out that paying more money isn’t the only answer. Learn more!

Do Ratings Help or Hinder Performance?
Grading on the curve may have worked for high school and college students, but is it really appropriate to use in evaluating employees? Microsoft recently abandoned their bell-curve-based rating system. Companies need some way to measure and reward performance, so what’s the solution? Learn more!

A Pay for Performance Perspective and Tips
When you give out pay raises, are you giving your worst performers the same raise as the guy or gal who brings in three times as much revenue? Many organizations tend to give across-the-board raises of about the same percentage to all employees. Which means the poor performers have no incentive to work harder, and the top producers have plenty of incentive to find a job with another company that rewards them better. How can you use pay incentives to create a successful business? Learn more!

HR and Startups – Planning for Successful Growth and Greater Productivity

September 3, 2014 by Melissa Quade
 
Melissa Quade

Over the years Resourceful HR has had the opportunity to work with many cutting edge startups in both the Bay Area and the Pacific Northwest. It has been a pleasure to help these companies put a plan in place for recruiting, compensation, performance management and compliance. We have had the wonderful opportunity to watch them achieve their growth and productivity goals including hiring top talent and receiving the funding they require to continue to grow.

Accomplishing these initiatives is often easier said than done though, because many entrepreneurs and startup founders have many other responsibilities to focus on. As the Wall Street Journal recently reported, often startups do the bare minimum when it comes to HR because there just isn’t enough time in the day. As the article shares, HR is an important component to add to your bench in order to get most out of your most expensive line item – your people – and to avoid current and future people, performance and policy issues. We encourage you to read the entire article here as several HR consultants and executives share some great tips.

Some salient points from the article and our team to consider:

HR is more than recruiting. Often startups are focused on acquiring the talent they need without thinking about the HR structure and initiatives needed to support them after they join your company. Don’t lose sight of the long game.

Your office manager may need HR training or support. Many times HR responsibilities fall to the office manager by default. He/she may need additional HR training or an HR expert that can provide support when it comes to employee, performance, or compliance issues, as well as guidance on which HR activities will bring the greatest return on investment.
Be conscious of the culture you want to create and work towards creating it from the very start. It is much easier to start as you intend to finish rather than find yourself in a situation where you may need to make big culture changes when you’re already well underway.

Assess which policies are required by law and which policies will clarify company expectations and offerings. You may also want to consider policies that are specific to your work environment and/or demographic such as social media, telecommuting, and relocation policies. At this point, it’s probably safe to say that every company should have a social media policy given its ubiquity in our current society.

Be aware of the nepotism. Startups often tap their own networks for hiring, which has its plusses and minuses. While hiring from referrals tends to be less risky, you can end up with a homogeneous and/or cliquish and divided staff.

Additional resources as you grow your startup:

Are you hitting the 20-employee mark?
Employment laws we advise you to embrace
Create structure for successful growth and greater productivity

Onboarding. Start New Employees Out on a Road to Success

August 18, 2014 by Laura Doehle
 
Laura Doehle

Many believe onboarding is the process by which new employees fill out new hire paperwork – they are set up for payroll and benefits and provided a quick overview of the systems they’ll be working on. While these activities are important, onboarding that results in maximizing performance and earning a greater return on your investment requires a little more strategic planning, which our clients have found to be well worth it. By viewing the onboarding process as an investment throughout a new hire’s introduction to the organization, you will greatly impact the new hire’s contribution to your organization and the timeframe in which they can make it happen. We recommend creating a process that focuses on integrating new employees into your culture and team and getting them up to speed and confident in what is expected of them from a conduct and performance perspective.

Here are some tips to consider as you build your organization’s onboarding process:

  • Allow technology to expedite the compliance portion of the process. Email the new hire all the required paperwork in advance of starting. Share relevant information upfront such as the organizations’ pay schedule, insurance options, any information that will affect their household. When they arrive on the first day, they’ll already have it completed or know questions they need answered.

  • Create a schedule for their first day, week and month so they have clear steps on how to get to know the organization (culturally and procedurally) and give them opportunities to interact with teammates. Schedule meetings throughout the first month to engage with different levels of employees throughout the organization to allow them to hear about different teams and projects.
  • Make sure there are lunch plans for their first day. They won’t know going into day one what they can anticipate for lunch, so plan that for them.
  • Communicate to all team members what will be changing when the new employee starts and how the onboarding process will unfold. It will provide a greater sense of security around what they can expect and the importance and value of their role. It’s important to remember that while it is exciting to start a new job, it also means change, which can be a challenge not just for the new employee, but also for other team members.
  • Make the process fun, interesting and productive! Don’t just provide a slide deck overviewing the organization’s mission, vision, and values. Ask other team members to provide the introduction and give them the freedom to be creative and provide anecdotes of the culture in action. Getting existing employees involved will get new employees excited about working with their new teammates.
  • Set and communicate expectations. Let new employees know what the organization, team and individual’s goals are and how their contributions support those goals.
  • Share how things operate and how different teams interact to support one another. Highlight, beyond an organizational chart, how the teams work together and who has accountability for which aspects of projects.
  • Provide a tour of the organization and if it’s a large space, provide a map for future reference. Introduce the new employee to as many people as possible. Make sure they know the logistics of the workspace such as where the cafeteria/kitchen is, the bus routes are, where to park, where the bathrooms are, etc. In addition, show them what’s available off site such as where the nearest coffee shops are, which restaurants do take-out and delivery to the office and which are great when you need to go off site for lunch.
  • Have the tools for their job ready, such as a computer and login information, mobile phone, if appropriate along with the information/instructions needed to get set up quickly and easily.
  • Create a peer onboarding system so they have someone other than their manager to go to if they have logistical questions. Provide guidance to the peer to check in frequently in the initial days to ensure they have what they need or any cultural questions can be answered in a comfortable environment.
  • Have their manager meet with them on the first day and throughout the first week to review and answer questions on expectations. Throughout the first 90 days, there should be frequent check-ins to ensure the new employee is on track, feeling comfortable with their role, and has the tools they need to perform their job.
  • Be consistent. Use the same onboarding process for each new hire and make changes and additions as you get feedback from employees on what worked well and what would have been helpful for them to have during the onboarding process.