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How Online Tools Stack Up for Total Compensation Statements, Performance Reviews

Total compensation statements, benchmarking salaries and performance reviews —including the use of online tools to simply these processes, were the major topics at this month’s Human Resource Practice Group teleconference.

Recommendations and concerns expressed at the roundtable discussion include these:

Total Compensation Statements

  • ADP payroll service provides total compensation statements for employees.
  • Insight E-Tools has been used successfully by one RPNI member.
  • Two agencies have developed proprietary software based on Excel spreadsheets. Contact RPNI Executive Director Gary Normington for permission to use these models.

Benchmarking Salaries

  • Some major cities have employee councils that conduct surveys. A challenge is that many large employers see no benefit in taking the time required to participate, while smaller companies may be reluctant to share proprietary information.
  • Data from national surveys needs to be adjusted to reflect the local market.
  • If a position is unusual, it can be worthwhile to ask a trusted contact at a similar company to share salary ranges.
  • The Property Casualty Insurance Association of America offers some salary data.

Performance Reviews

  • “We’re moving away from a one-time annual meeting to check-ins several times a year. Are you ahead or behind of our goals?”
  • “We base merit increases on whether the person’s responsibilities have increased and whether they’re going above and beyond what is expected. Are they growing or are they on cruise control?”
  • “We have ratings of 1 to 5, but haven’t given 5s. We’re revisiting why we have a rating of 5, if we don’t use it.”
  • “We haven’t had performance reviews for years. Our turnover is low, it was time-consuming and managers didn’t feel it was working for them.”
  • “I’ve never heard of a manager who loves performance reviews. However, it we give one person a 5 percent raise and another person a 3 percent raise, we need reasons that are objective and in writing. If we ever ended up in court, we’d have a hard time convincing a jury it isn’t discrimination.”
  • “We switched this year to Reviewsnap. It’s powerful and easy to use.”
  • “If you use technology for performance reviews, keep an open mind. It’s unlikely that it will match exactly what you are doing on paper.”

This’ month’s discussion was led by Amanda Ross, SHRM-SCM, SPHR, of Moody Insurance Agency. The next Human Resources Practice Group meeting will be July 13 and will focus on succession and workforce planning.