Holacracy Community of Practice Archive, 2015-2019 Community Holacracy Web Site

Starting Compensation App (Decoupled from Lead Links) v.1.0

So, you want a straight forward compensation app that doesn't require you to use badges?

Well, here is a good starting place. It's a process-based system decoupled from Lead Links (though Lead Links are invited to share data).

This app distributes the authority to make compensation decisions across several different roles. 

There may be more here than you need, but as always, feel free to pick what would work for your specific organization.  

The intent is to create a sub-circle, "Compensation & Employment," then specify some core functions within that Circle (i.e. Roles and Policies).

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New Role in GCC:

"Compensation and Employment"

Domain: Employee compensation process 

Accountabilities:

  • Communicating the vision of the overall compensation strategy and process.
  • Communicating about any change to the compensation system. 
  • Evaluating roles to determine market-based competitive compensation salary ranges for all employees. 
  • Developing and maintaining a company-wide employee compensation system.

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New Roles within Compensation and Employment Circle:

"Compensation Vision"

Accountability:

  • Defining and rolling out a high-level compensation process, including philosophy and strategy for the system.

"Compensation Analyst"

Accountability:

  • Reviewing compensation analysis and possible changes, and giving feedback on employee perspectives.

 

"Compensation Architect"

Accountabilities:

  • Defining the minimum skills, competencies, or achievements required to qualify for salary ranges.
  • Providing clarity of compensation placements and understanding about getting an increase in compensation.
  • Evaluating roles to determine market-based competitive compensation salary ranges for all employees.
  • Communicating the details of the compensation process.

 

"Benchmark Reviewer"

Accountabilities:

  • Reviewing requests for compensation adjustments and making a recommendation based on salary benchmarking.

 

"Compensation Coach"

Accountabilities:

  • Sharing resources and updates about the compensation system.
  • Supporting employees to navigate the compensation system.

 

"Compensation Reviewer" [Multi-filled with a focus per employee for any requested compensation adjustment]

Accountability:

  • Reviewing compensation adjustment requests and making recommendation based on first-hand experience of the employee’s performance

 

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New Policies in Compensation and Employment Circle:

Compensation Policy for Initial Period:

No one’s compensation will decrease within the first six months of the new system.

No one’s compensation will be lowered as a result of a compensation analysis but it will be frozen if the analysis shows that they are over-compensated based on their contribution. The individual will be informed and given an opportunity to make steps to align their contribution with their compensation.

Compensation Reviewer Policy:

The Compensation Architect role or any employee may request a compensation adjustment for an employee.

When reviewing a given employee’s compensation adjustment request, the Compensation Reviewer must be filled by at least 2 people with a focus per employee, one a Lead Link in a circle they have worked in, and one by someone who works closely with the person and is not a Lead Link. 

 

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In Summary: 

1.     Compensation role(s) defines salary ranges, and criteria for salary placement, and conceptual framework.

2.     An employee may request analysis of their compensation to be considered for a raise.

3.     Someone requests a raise based on a reason, including the most valuable skill they are contributing. Employee will submit any information about their contribution for the compensation reviewers to consider within the compensation levels and criteria.

4.     Compensation will be determined based on skills contributed in Role and as an employee in the organization. Roles review (1 Lead Link, 1 Compensation Reviewer, the Benchmark Reviewer), and allocate a compensation amount, if excellent in performance, based on the available info, and also placing within the range of compensation that is based on the most valuable skill an employee is regularly contributing.

 

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