Tag: Community Skills

understanding the difference between recognition and reward

UNDERSTANDING THE DIFFERENCE BETWEEN RECOGNIZING AND REWARDING YOUR PEOPLE

Written by Kai Donesa on . Posted in Resources.

When was the last time you acknowledged your people for a job well done?

It’s easy to get caught up in the daily grind and forget to recognize the efforts of those around us. As leaders and managers, it’s crucial to understand the difference between recognizing and rewarding the hard work of our staff.

While recognition and reward are essential in motivating and encouraging employees, they are vastly different. Each word carries varying connotations and outcomes. Recognition is about acknowledging staff for improving at their jobs, while reward is about commending individual staff for their exceptional performance and achievements.

Knowing the difference between both strategies can transform your workplace dynamics. In this blog post, we will explore the nuances between recognizing and rewarding staff and how you can strike a balance to create a culture of appreciation and excellence in your organization.

Why you must distinguish between reward and recognition

Recognizing and rewarding staff are two distinct concepts often misunderstood and used interchangeably. Distinguishing between the two is critical because it informs how your organization appreciates and incentivizes its people. At the same time, recognition and reward complement each other in creating a balanced and positive workplace culture.

A common mistake in organizations is using recognition and reward synonymously. However, this mindset can lead to a skewed view of what motivates staff. Recognition and reward have different impacts, and implementing a balanced approach can significantly improve your human resources strategies.

Understanding recognition

At work, recognition can be a powerful motivator. Recognizing the growth in your people’s skills and knowledge boosts their morale and promotes a positive work culture. It’s an often-overlooked gesture that can significantly affect job satisfaction. When staff members feel valued and appreciated, they are more likely to put in their best effort.

The role of employee recognition in fostering a motivated, satisfied, and high-performing workforce cannot be overstated. As we better understand what recognition focuses on, remember that each point holds unique value in shaping an employee’s job progression.

Valuing knowledge. The knowledge and expertise of your people are the driving forces behind your organization’s innovation, problem-solving, and decision-making. Recognizing and appreciating the depth and breadth of your staff’s knowledge can foster a culture of learning and growth. It encourages employees to continue expanding their knowledge base, contributing to their personal and professional development.

Appreciating skills growth. Skills are the practical application of knowledge. They are tools that enable staff to work effectively. Recognizing the skills of your people, from technical prowess to interpersonal abilities, is important. By acknowledging the growth in your staff’s skill sets, you confirm their value to the organization.

Recognizing capacity. Capacity refers to a person’s ability to meet the demands of the job. Recognizing an employee’s capacity is acknowledging their potential and ability to take on challenges. You trust their abilities and are confident in their growth potential. This recognition can empower staff to push them beyond their limits and strive for achievement.

Focusing on professional development. Professional development is important in an employee’s career progression. Recognizing your staff’s commitment to continuous learning and improvement shows you value their drive to better themselves.

Managing fair and objective pay increases. When your staff feel that their hard work and dedication are recognized with appropriate compensation, it boosts their morale. Additionally, fair pay increases demonstrate that your organization values and appreciates their contributions, encouraging staff to continue improving their skills and knowledge.

Recognizing and appreciating employees’ efforts creates a positive work environment where everyone feels valued. The Birches Group approach to recognizing employees is rooted in skills growth. Managers and staff members collaborate and have equal ownership of measuring and growing their skills. Providing your people with a framework that objectively measures and recognizes their skills growth, you enable the following opportunities:

  • Your managers and staff provide input on the pace of their growth
  • Your people are recognized and compensated as they become better at their jobs.

Understanding reward

Reward is integral to an organization’s approach to managing people. Most organizations tend to link reward to high-achieving, outstanding employees. However, at Birches Group, we also reward a majority of the staff who meet the expectations of their jobs.

So, what differentiates reward from recognition?

Recognizing results. Reward is often tied to specific outcomes or achievements, such as exceeding targets or completing a project successfully. It is a way to acknowledge and celebrate the results that staff members have delivered. Recognizing staff accomplishments reinforces the importance of their contributions and motivates them to perform at their best.

Acknowledging impact. Whether it’s through ideas, client service, or an ability to solve complex problems, the impact of one’s work is felt throughout the organization. Rewarding this impact is a powerful way to show staff that their job matters and makes a difference. By focusing on output, your organization can encourage employees to think creatively. More importantly, focusing on getting things done gives your staff the flexibility to try different paths to achieving their output.

Highlighting critical incidents. Critical incidents are situations that require immediate attention and exceptional handling. When your staff successfully navigates these challenging situations, it’s important to recognize their quick thinking and problem-solving skills. This will boost their confidence and motivate them to manage future incidents with the same level of competence.

Celebrating achievements. Achievements deserve credit and kudos. By celebrating your staff’s achievements, you acknowledge their efforts and foster a sense of pride in their work. When you take time to celebrate individual or team accomplishments, it also encourages a spirit of camaraderie and communal success.

Offering bonuses. Bonuses are a tangible way of rewarding exceptional performance. They show your employees that you notice and appreciate their hard work. Offering bonuses as a form of recognition can incentivize employees to continue performing at a high level.

recognizing the difference of recognition and reward

Why your organization should both recognize and reward staff

A successful organization is like a well-oiled machine, with each part playing a role in supporting smooth operations. Employees are the most vital, powering the machine with their skills, dedication, and creativity. Thus, organizations must not only recognize but also reward staff.

As discussed earlier, recognition is a powerful tool that can significantly increase staff morale. When employees feel their hard work and dedication are recognized, they feel valued in the organization. This, in turn, can boost their productivity and enthusiasm for their work. Moreover, recognition fosters a positive work culture where employees feel appreciated and are likelier to go the extra mile for their job.

While recognition fuels pride in one’s work, reward reinforces this sentiment. Whether monetary or otherwise, rewards are a tangible acknowledgment of an employee’s contributions. They function as a driving force, motivating staff to exceed their performance levels and strive for higher achievements.

How to balance recognition and rewards in your workplace

Recognition and rewards help foster a positive work environment. They reinforce the behaviors and values that contribute to an organization’s success. However, striking the right balance between the two is a delicate process. If not appropriately managed, it can lead to discontent and demotivation among staff.

An overemphasis on rewards may make recognition seem hollow, while focusing too much on recognition may leave staff members feeling undervalued due to the lack of tangible benefits. Your organization can achieve an optimal balance by maintaining a consistent pattern of recognition and tying rewards to clearly defined performance benchmarks.

Recognize effort and reward results. Recognition should be frequent and consistent, aimed at acknowledging effort. This approach motivates all team members and not just top performers. Employees who see their efforts recognized will likely continue contributing to their best abilities. On the other hand, rewards should be linked to significant achievements and results. This approach reinforces the link between performance and rewards, encouraging employees to strive for excellence.

Implement a fair and transparent system. Fairness is vital in balancing recognition and rewards. Ensure that all employees understand how the recognition and reward system works and that it is applied consistently and uniformly across teams. Make sure the rules and criteria for recognition and reward are well-defined and communicated to each staff member. This involves outlining the performance standards or behaviors that will be rewarded or recognized, and the types of rewards or recognition that employees can earn.

How Birches Group’s approach and tools can help

At Birches Group, we understand the importance of recognition and rewards in engaging your staff. Our Community™ approach has made it possible to distinguish recognition from reward, where pay movement is linked to skills growth, and performance is linked to rewarding achievement.

Our online platform offers comprehensive tools and resources to help your organization recognize and reward employees effectively. In addition, our compensation and benefits surveys provide data and insights into what similar organizations in your labor market are doing to recognize and reward staff.

We also offer training and consulting services to help you develop and implement effective recognition and rewards programs. Our team of experts is ready to guide your organization using Community™. Contact Birches Group today and let us guide you in distinguishing recognition and reward.

Carla is a part-time copywriter in our marketing team in Manila. Before shifting to freelance writing in 2020, she worked as a marketing and communications specialist at the offices of EY and Grant Thornton. She has written about HR and career development for Kalibrr. 

Follow us on our LinkedIn for more content on pay management and HR solutions.

Ensuring Equity

BUILDING A SUCCESSFUL HR MANAGEMENT STRATEGY BY ENSURING EQUITY

Written by Kai Donesa on . Posted in Resources.

A discourse is taking center stage in human resources (HR): equity. More than just a buzzword, ensuring equity in the workplace is now a concern across organizations, sparking conversations between HR professionals and business leaders.

But equity is more than just fairness. Equity ensures every employee has equal access to opportunities, resources, and fair treatment. In an era where diversity and inclusion have become the core of corporate values, equity is impossible to ignore. Integrating equity into your organization’s HR strategies is crucial to cultivating employee satisfaction and success.

Additionally, it’s important to distinguish between equity and equality. While equality involves providing the same resources to everyone, equity acknowledges that individual circumstances vary and, as such, an organization should offer the necessary resources to achieve equal outcomes.

Ensuring Equity in the work place
Image source: Robert Wood Johnson Foundation

As organizations navigate an increasingly diverse and dynamic landscape, establishing a fair HR strategy goes beyond ethics and compliance.

This blog post will explore the hot topic of equity, its role in HR practices, and how HR can foster an environment where equity is a reality. Drawing from industry insights and proven systems, the blog article will help guide you toward cultivating a fairer and more equitable workplace.

What is equity?

As an HR professional, you have probably heard the term “equity” thrown around in your workplace. But what does it mean?

Equity is the fair treatment of access, opportunity, and advancement for all individuals. While the term is often associated with pay, equity acknowledges that every staff member has unique needs and circumstances.

Ensuring equity involves customizing resources and opportunities so that everyone has an equal chance of success. According to the Society for Human Resources Management, this includes “identifying and working to eliminate barriers to fair treatment for disadvantaged groups, from the team level through systemic changes in organizations and industries.” For example, providing added training to employees who lack specific skills can be an example of equity.

You might wonder why equity is significant and how it affects your organization. The truth is that equity is the backbone of any successful HR management strategy. Without it, your organization could face many challenges, including high turnover rates, low employee morale, and even legal issues.

How vital is equity in HR?

Equity in HR is more than a matter of ethics or compliance. It’s a strategic necessity. Employees who feel treated fairly are more likely to be engaged and productive. They are more likely to stay with your organization and contribute to its success.

A lack of equity, on the other hand, can lead to a toxic work culture. Employees who feel they are not treated fairly are more likely to be disengaged and unproductive. They are likelier to leave your organization, leading to high turnover rates and recruitment costs. Moreover, a lack of equity can also expose your organization to legal risks, as it could potentially violate anti-discrimination laws.

Another reason ensuring equity is vital in HR is that it helps attract and keep top talent. Job seekers are not just looking for a paycheck. They are looking for a workplace that values diversity and inclusion and treats all employees fairly. By ensuring equity, you can make your organization a more attractive place to work.

Ensuring equity in the organization is vital as the workplace constantly evolves. How can organizations support equity when their staff is dispersed across various locations, both locally and internationally? How do they ensure equal opportunities when most staff opt for remote work instead of coming to the office?

HR plays a crucial role in implementing policies and practices that promote fair treatment and challenge systemic bias. They must create an environment where every employee has a chance to succeed regardless of their background.

How do I build Equity into our HR strategy?

Building equity into your HR strategy may seem daunting, but it doesn’t have to be. Here are some steps you can take to ensure equity in your organization:

Assess your current situation. Are there any areas where some employees are treated less favorably than others? Are there any policies or practices that could potentially discriminate against certain groups of employees? Thoroughly auditing your HR processes can help. Collect and analyze relevant data to identify any equity issues. Once you have identified these concerns, take action to address them.

Develop a clear policy on equity. Should individuals in the same job receive similar pay rates, regardless of their location in vastly different markets? Alternatively, should compensation be determined based on what the organization considers fair and competitive within the specific market where the employee is situated? Your policy should clearly articulate your organization’s dedication to equitable treatment for all employees, set up parameters for addressing and rectifying potential equity concerns, and emphasize the significance of communicating this policy to all employees while offering training in equity and diversity.

Implement fair HR practices. Promoting equity requires an integrated approach where every individual feels valued and heard. This involves creating an environment where diversity is celebrated and employees are given equal access to opportunities through unbiased recruitment processes, proper compensation structures, and inclusive workplace policies. Remember, the goal is not just to treat everyone the same but to give everyone an equal opportunity to succeed.

Communicate your targets and share your progress. Set clear, measurable goals for equity, and track your progress towards these goals. Be transparent about your progress and any challenges you are facing. Most importantly, set up transparent communication channels that allow for open dialogue about organizational decisions, fostering trust and empowerment among staff members.

Promote the importance of equity. Make sure that your organization’s leaders and staff are aware of the benefits of equity and why it is essential to success. Remember that equity is an ongoing commitment that requires continuous monitoring and improvement. By promoting an environment of fairness and respect, you can ensure that your people can thrive and contribute meaningfully to fulfilling the organization’s mission.

How Birches Group can help you ensure workplace equity

At Birches Group, we understand the importance of equity in HR. That’s why we’ve developed Community SkillsTM, a platform and tool that can help you ensure equity in your organization.

Community SkillsTM is designed to help assess your people’s skills and knowledge growth. It allows you to create a skills profile for each employee, which can aid in finding skills gaps and developing learning & development plans.

In addition, the platform offers benchmarks for various roles and functions to better ensure fair compensation for all employees. By using Community SkillsTM, you can ensure that all your employees are given an equal opportunity to grow and succeed.

Equity is a crucial factor in building a successful HR management strategy. It’s not just about treating everyone the same, but about giving everyone an equal opportunity to succeed. By understanding equity, recognizing its importance, and integrating it into your HR practices, you can create a workplace that is fair, inclusive, and conducive to success.

Contact Birches Group today to learn about our Community SkillsTM platform and request a demo.

Carla is a part-time copywriter in our marketing team in Manila. Before shifting to freelance writing in 2020, she worked as a marketing and communications specialist at the offices of EY and Grant Thornton. She has written about HR and career development for Kalibrr. 

Follow us on our LinkedIn for more content on pay management and HR solutions.

4 BIGGEST PROBLEMS IN RECRUITMENT AND HOW TO FIX THEM

Written by Kai Donesa on . Posted in Resources.

One of the critical functions of HR that significantly impacts an organization is recruitment. Hiring talent is a multi-faceted process with many steps. In the blog, we discuss the 4 biggest problems in recruitment and how to fix them. These steps begin with having clear job descriptions, sourcing qualified candidates, conducting job interviews, and setting the starting salary of new hires. All these steps, coupled with the lack of standards and the personal biases of the hiring panel, could be a minefield of challenges and potential pitfalls.

Areas where organizations often make recruitment mistakes include vague job descriptions focused on tasks and not effectively screening applicants based on a solid and objective framework. Without the proper structure and processes, an organization’s recruitment efforts can quickly go sideways. Instead of hiring a perfectly qualified incumbent based on their skill level, managers and recruiters typically settle for the most charismatic person who happens to apply. But how can they determine if that candidate meets the role’s requirements?

Recruiting new employees can be daunting, so organizations must ensure corporate standards when assessing talent. What if an organization’s approach to recruitment can be fairer and more transparent—with purpose-driven job descriptions, structured job interviews focusing on the candidate’s experience, a solid skills-based framework for assessing candidates, and a transparent and objective approach to setting starting pay?

This blog post will present some of the most pressing recruitment challenges faced by managers and panel interviewers—and helpful ways organizations can solve them. A hint: it’s about revamping the process.

Vague job descriptions

Job descriptions describe the purpose, scope, and impact of a job. It should be clear, concise, and, most importantly, detailed enough to provide a clear picture of why the role matters. It must describe the role’s various functions, its placement within the larger unit or team, and how it contributes to the mission.

Unfortunately, due to the lack of guidance and proper tools, managers often try to write job descriptions by creating a mile-long list of tasks.

There are several problems when job descriptions focus on a list of tasks or inputs:

  • First, a list of day-to-day tasks doesn’t demonstrate why the role is crucial to the organization. How can candidates genuinely understand what they’re applying for if they only see a list of what they need to accomplish at the end of the day or week?
  • Second, when job descriptions use inputs, this does not give the incumbent room for flexibility or creativity with their approach to work. The concept of input stems from the old days of ‘clocking in and out’ from the office every day and ensuring your manager sees you at the office to give the impression that one is working hard. But does being in the office and clocking in truly mean that work is getting done?
  • Finally, a checklist of tasks often uses vague language, such as ‘assist’ or ‘prepare,’that fails to describe the impact of the role. The use of vague language affects how the job is evaluated at the proper level and, subsequently, affects compensation, learning & development objectives, performance measures, and career milestones.

So, how can this be avoided? By writing purpose-driven job descriptions that focus on the what and why rather than the how or where. An effective job description has a clear mission statement at its core. It should describe to the candidate why the role is crucial and what it is expected to deliver.

Additionally, a targeted skills profile must be incorporated into the job description to guide the recruitment process. By indicating the desired skill level required for the job (whether Basic, Proficient, or Skilled), managers or the hiring panel can better identify qualified candidates that meet the level of expertise required for the role.

Little to no structure to job interviews

It’s not unusual for job candidates to feel they are being grilled during an interview. The hiring panel asks questions that gauge the knowledge and experience of applicants. What do they know about the organization? What are their strengths? Where are they in their career?

The problem is when interviewers only ask candidates why they want the job. When going through the typical job interview process—where interviewers often think of questions on the fly—they fail to let the candidate demonstrate their experiences reflecting the required skill level for the job.

In many job interviews, questions are not given much thought. The concern is getting through the countless resumes and long line of applicants to finally fill the vacancy. But what ends up happening is that candidates are often asked questions that have little or nothing to do with the job, ultimately leading to a bad hire.

How can organizations get around this? Interviewers must be armed with questions integrated into the job’s skills profile and following the development approach, which indicates how a skill level may be mastered.

Birches Group’s Community™ Skills Recruitment tool provides interviewers with questions linked to the selected skills profile—from Basic to Proficient to Skilled—using a competency-based model. The questions encourage the candidate to relate a real-life experience or event that illustrates their capacity to respond to a given situation.

With standardized interview questions for every skill stage at each grade level, interviews finally become job-based, structured, and consistent.

Lack of corporate standards for assessing candidates

In assessing candidates, managers or the hiring panel have never been provided standards they could use to objectively base their assessments. Often, they tend to fall back on the usual years of experience, personal preferences, and even gut feeling. Not having clear criteria for assessing candidates and instead relying on personal judgment or salary history usually lead to hiring mistakes.

Following the structured interview questions provided by our Community™ Skills Recruitment tool, an assessment can be made by scoring the candidate’s responses to the appropriate skill level for each question. Depending on the level of knowledge and experience the candidate demonstrates, the interviewer can select from either the Basic or Proficient stage. But when a candidate’s responses appear to reflect a depth of knowledge or highly refined experience, this can warrant the interviewer to select the Skilled stage on their scorecard.

Once the job interview is complete, a scoresheet with the progressions of questions and skills ratings is presented, guiding subsequent discussions on the candidate’s assessment.

A consistent set of questions linking the skill level to the job grade ensures a neutral assessment of each candidate’s qualifications without examining their salary history.

Lack of a fair and equitable approach to setting starting pay

Many organizations do not have a clear approach to determining fair and appropriate starting salaries beyond their hiring rates when setting starting pay. When there is a desperate need to fill a vacancy, managers often end up negotiating starting salaries beyond what the organization is prepared to offer. When starting salaries are determined on a case-to-case basis, the organization is left with staff paid at different rates despite having the same work and skill level. This opens managers and HR to problems like mismatched expectations, which can cause employee resentment.

Organizations need to ensure that their hiring practices are fair and equitable. If candidates are assessed based on their skill level, the same approach can be applied when setting starting pay. The Community™ Skills Recruitment tool provides a framework for managers to easily determine starting salaries based on the candidate’s confirmed skill level.

Organizations can array the salary range for each grade level against our five Community™ Skills stages. When setting starting pay for a successful candidate, our Community™ Skills Recruitment tool automatically calculates the appropriate starting salary based on the candidate’s skills scorecard during their job interview.

When the skills profile is integrated into designing the job, structuring the interview questions, assessing candidates, and determining starting pay, organizations now have a consistent, fair, and equitable approach to the recruitment process. Biases, particularly age, gender, and race, no longer become a factor, while experience can be assessed more accurately.

A final note

Organizations face many issues when it comes to screening and hiring candidates. The most frustrating is not knowing what the applicants are truly capable of. To avoid the four problems earlier discussed, organizations must rework their approach to recruitment. They need to establish standards for assessing talent. Instead of looking at tenure, degree, or salary history, organizations must engage in skills-based recruitment that links back to the job level. By taking this approach, organizations can bring consistency, standards, and equity to one of the most unstructured but crucial HR functions.

Contact us to learn more about Birches Group’s Community™ Skills Recruitment tool and schedule your demo today.

Carla is a part-time copywriter in our marketing team in Manila. Before shifting to freelance writing in 2020, she worked as a marketing and communications specialist at the offices of EY and Grant Thornton. She has written about HR and career development for Kalibrr. 

Follow us on our LinkedIn for more content on pay management and HR solutions.

ESTABLISHING CLARITY, FAIRNESS, AND EQUITY IN PAY

Written by Kai Donesa on . Posted in Resources.

Establishing fairness in pay involves careful and thoughtful decision-making that is not as straightforward as simply assigning the same salary to all employees in the same position. Staff development is never uniform. Employees develop at different paces, with some gaining skills and experience around specific areas of the job faster than others. To ensure fairness and equity through pay, employers need to carefully assess the unique skills and knowledge of each employee, while providing clarity in approach.

Clarity in Pay Through Transparency

Historically, disclosing one’s salary has always been considered private and taboo. Salaries have always been an emotional and sensitive subject, as it is typically associated with one’s value to the company.  According to this LinkedIn article, one of the reasons for keeping wages and salary ranges private is that companies want to keep the status quo. They are afraid to upset employees which can inevitably happen when pay gaps in the organization are exposed. But the reality is that every organization will have pay gaps, and a major step in eliminating those gaps is through transparency.

In recent years, both lawmakers and leading companies have been addressing gender and race-related pay gaps through laws and compensation policies. In 2006, Denmark introduced legislation that required companies to disclose wage statistics between men and women with the same job if the company has more than 10 men and women working in the same position. In this study done by Professor Morten Bennedsen from the Economic Institute at the University of Copenhagen and INSEAD Business School in France, the law appears to have decreased the pay gap between men and women by 13%. In Canada, public sector employers are required to disclose salaries and benefits of employees that are paid $100,000 or more in a year which led to a 30% drop in the gender pay gap according to a study by the National Bureau of Economic Research .

In Birches Group, we too, believe and practice transparency in pay which is demonstrated through a couple of ways. First, the company’s salary scale is published to all staff. All employees are allowed to see the salary ranges not only for their grade level, but also others. Simply making our salary scale public allows everyone in the organization to see predictable movement within each grade level, the difference between one grade level to the next, and possible career progression for each role.

Second, our compensation policies on setting pay, variable pay movement, and milestones to determine promotion readiness are made clear as part of the company’s onboarding process and refresher trainings are regularly provided to all staff. When organizations make it clear how employees are paid and how they can chart their careers, staff feel more empowered to take equal ownership of the level and pace of their development, positively contributing to employee retention, while holding the organization accountable to provide clarity to their employees on how they are assessed and recognized.

Fairness and Equity in Pay by Measuring Staff’s Skills & Knowledge

Managing pay increases has always been a complicated process. People want to be paid according on their level of experience, but traditional approaches have never allowed managers to clearly measure experience apart from time (through time-based “steps” in the salary scale) or performance (through merit pay).

Using time-based steps or increments was never effective in recognizing one’s experience. As long as an employee completes another year with their employer, they get one or two steps in their pay regardless of whether they do their job or not. Merit pay, on the other hand, allows for variable pay movement based on the employee’s performance ratings from the preceding year. While this approach was designed to award pay increases to employees with good outputs and results, using performance ratings is not reliable because it doesn’t guarantee the same results the following year. When performance is used to drive pay increases, the organization is essentially rewarding an employee’s one-time achievement with a salary increase forever.

To truly establish equity in the workplace, we at Birches Group, believe pay movement should be based on the level of skills and knowledge the employee brings to the company. Over time, as an employee acquires and demonstrates new levels of skills and knowledge, their capacity to perform their job becomes better, making it a more effective and objective way to drive pay increases.

A big challenge to employers has always been how to measure one’s experience – “How do I know, what you know?” Birches Group has come up with a framework and an assessment tool that can explicitly measure your employees’ skills and knowledge. Using our Community™ Jobs approach as the underlying foundation, Community™ Skills consists of a progression of five skills stages across six indicators which is used to measure the continuous growth of an employee within their job.

Through Community™ Skills, pay management policies can be developed and aligned to use skills and knowledge growth to drive variable pay movement. Community™ Skills can also be used to demonstrate equity and fairness through deliberate developmental assignments for staff, as well as providing an objective criterion for succession planning and promotion decisions.

Pay equity and transparency in the workplace doesn’t happen overnight. Companies must take active steps to ensure clarity around pay management policies, as well as standards on how employees are assessed and developed. Birches Group has extensive experience developing compensation policies for organizations across different sectors and markets. Our Community™ Skills tool can help organizations assess the capacities in their workforce, facilitate pay movement, as well as guide learning and development assignments. Contact us to learn how we can improve your talent management programs today.

Kai works in our Marketing Team in Manila. She creates online content around Community™ concepts and assists in developing promotional campaigns answering why Community™ should be each organization’s preferred solution, focusing on its simplicity and integrated approach. She has had years of experience in social media content creation handling different brands over the years.

Follow us on our LinkedIn for more content on pay management and HR solutions.

FIVE STEPS TO IMPLEMENT COMMUNITY™ SKILLS

Written by Kai Donesa on . Posted in Resources.

In our previous articles, we have shared the powerful and versatile capabilities of the newest solution from our Community™ integrated approach and platform, Community™ Skills. In this article, we will go over the five steps needed to implement Community™ Skills in your organization. This innovative tool allows organizations to manage and build their capacity by measuring the skills of their workforce, tailor learning and development plans around explicit measures at every grade level and skill stage and be able to objectively recognize skills growth through pay movement, prepare for their staff’s promotion, and so much more.

So, perhaps you’re thinking, “Sounds great! But how exactly do I implement this? Where do I even begin?” “Does it really only take five steps to implement Community™ Skills in my organization?” Because there are several HR functions that will need to be aligned to the Community™ Skills approach, this undertaking will take a bit of effort. But we, at Birches Group, have gone through this process ourselves, and here are some of the steps that we have taken to get everyone on board:

  • Align your organization’s job evaluation and pay structure to Community™ – To implement any Community™ solution in your organization, we must start with your jobs. Through Community™ Jobs, we will evaluate and align your job structure to our fourteen Birches Group job levels which will be the same levels used once you carry out your Community™ Skills assessments. Once your job levels have been aligned, our five Skills stages can then be arrayed against the pay range at each grade and the corresponding pay increments can be tailored to follow your organization’s policy on pay movement and frequency of skills assessment rounds.
  • Community™ Skills training with managers – Now that you’ve aligned your jobs and pay structure to the fourteen Birches Group job levels and five Skills stages, managers will need to be trained on the concepts behind the Community™ Skills approach and a briefing for them to use the tool. Birches Group is on hand to organize this for any organization to ensure that there is a shared understanding of the principles of each skill stage and the six indicators among all supervisors.
  • Conducting your first Community™ Skills assessment round – Once all managers have been trained on the methodology and platform, HR is now ready to conduct the first skills assessment round. Managers will assess each of their staff according to their evaluated job level and all results will be collated and stored in our Community™ system. Birches Group can assist in generating individual and overall reports. HR can then calibrate the results to ensure alignment in the assessments before presenting recommendations to management.
  • Tailoring learning and development plans – Simultaneously, managers can also begin tailoring individual learning and development plans for each of their staff. Each development plan should focus its activities to help the employee advance to the next skill stage or grade level, their assignments and metrics should align with each of the six indicators, and the timeframe in between assessments should also be determined.
  • Communicating assessment results to staff – once assessment recommendations have been approved and respective movements in pay have been taken into consideration, it is time for managers to communicate the results to their staff. At this stage, it is crucial for managers to be clear about how each employee was assessed, the impact on their salaries, and their follow-up development plans. At the same time, employees can also take equal ownership and provide suggestions to supplement or refine their development plans further. This way, assignments and metrics can be more attainable for staff in between assessment rounds.

The first round of skills assessments for any organization will, indeed, be a period of adjustment. HR has a role to play in making sure that the process that went into the assessments, creating the development plans, identifying promotion readiness, and pay movement are all being communicated clearly to staff. But with the structure and transparency our Community™ Skills tool provides, staff discussions around these critical talent management activities can now be done with ease. We hope that enumerating these five steps to implement Community™ Skills gives a clear pathway on how to get started. Contact us to see a demo of our Community™ Skills tool and how your organization can get started.

Want to know if your existing compensation practices have the elements of a good compensation program or if there are areas that could use some improvement? Take our quick Compensation Program Assessment Quiz to know your score!

Bianca manages our Marketing Team in Manila. She crafts messaging around Community™ concepts and develops promotional campaigns answering why Community™ should be each organization’s preferred solution, focusing on its simplicity and integrated approach. She has held various roles within Birches Group since 2009, starting as a Compensation Analyst and worked her way to Compensation Team Lead, and Training Program Services Manager. In addition to her current role in marketing and communications, she represents Birches Group in international HR conferences with private sector audiences.

Follow us on our LinkedIn for more content on pay management and HR solutions.

BIRCHES GROUP’S COMMUNITY™ SKILLS MODEL

Written by Kai Donesa on . Posted in Resources.

Through our Community™ Skills model, organizations can finally recognize and explicitly measure an employees’ growth in skills, knowledge, and experience – their abilities to perform their job.

In Birches Group, we believe that when organizations are able to explicitly measure their employee’s accumulation of knowledge and experience, this can serve as the foundation to ensure transparency and equity for other critical talent management functions such as managing pay movement, recruitment, learning and development, succession planning, and more.

The problem is, many organizations have always applied separate approaches and tools in managing each of these critical HR activities. This is an issue because none of these approaches align with each other or even share the same standards…but not anymore.

In Birches Group, we’ve developed a better approach, and it’s simpler than you think!

Community™ Skills

The Birches Group solution for measuring knowledge and experience is Community™ Skills. Community™ Skills measures the stages of skills and knowledge linked to the Birches Group Community™ job levels.  We have developed explicit measures for each job level using the same factors and indicators that form the basis for our job evaluation methodology.

The Same Three Community™ Factors

Community™ Skills is part of our larger integrated HR management approach and platform, Community™, wherein the same three factors – Purpose, Engagement, and Delivery – are also used to assess each employee across the same fourteen Birches Group levels. A description of each of the three factors can be found in our previous Community™ article, “Just Three Things: How Purpose, Engagement, & Delivery Can be Used to Understand Your Organization and Support Your HR Programs” and how these three factors serve as the common standard of measure across all our Community™ solutions.

The Six Indicators

Each Community™ factor is then divided into two indicators. The factors and indicators are job-based and can be applied to any kind of role in any occupation in a generic manner.

For Purpose:

  • Conceptual Knowledge – What is the conceptual focus and complexity in the design of solutions? For rules-based transactions, what is the complexity of the data or information handled?

  • Applied Knowledge  – What is the breadth of managerial or project/program oversight? What is the extent of supervisory or process management as part of a larger functional service?

On Engagement:

  • Internal – What is the collaborative role within the functional team? What is the depth and breadth of information provided to the team?

  • External – What is the advisory role with other functional teams or external clients? What is the depth and breadth of information provided to other functional teams or external clients?

And for Delivery:

  • Timeliness – Efficiency: How are resources deployed against project/program needs and cycles? How are process schedules maintained to strengthen service responsiveness?

  • Quality – Effectiveness: What is the measurable impact of interventions or the functional unit? How are quality metrics maintained throughout service execution.

The Five Skills Stages

Community™ Skills uses the job levels established within an organization as the basis for defining progressive Skills Stages, which can be used to measure the continuous growth of an employee within their job. In short, it provides an explicit measure of “experience” rather than relying on time as a proxy. In our Skills tool, we have identified five Skills Stages at each grade level:

  • The Basic stage reflects the minimal acceptable understanding of the job.  Employees in this stage are capable of addressing simple issues in standard operational settings.
  • The Proficient stage reflects the level of understanding of work where more complex issues can be addressed and the employee can adapt to most operational settings, including more complex ones.
  • The Skilled stage is achieved with a complete conceptual understanding of the job and the ability to be effective in all types of operational settings.
  • The Advanced stage shows the level of knowledge that enables a high degree of independence in the job and reflects a broad understanding of concepts which overlap with the next higher grade level.
  • The Expert stage indicates the highest level of understanding of the job and overlaps significantly with the next higher grade level. The level of understanding found at the master stage also allows for advising on process and systems improvements and the mentoring of others, which in turn results in better outputs and stronger capacity.

These Skills Stages were developed using the Birches Group Community™ Jobs approach as the underlying foundation.

With six Indicators and five Skills Stages, there are a total of thirty (30) milestones to measure skills and knowledge per grade.

Using these thirty milestones, a Skills assessment can be recorded over time. Staff may progress through the stages at different rates across the different indicators as this reflects the natural competencies of people relative to areas where they have skill, and how quickly or slowly their Skills grow.

As managers and supervisors observe the Skills growth of their staff, critical HR functions such as pay adjustments and determining the readiness of staff for the next grade or assignment becomes clear, transparent, and objective.

Community™ Skills makes it possible for managers to measure skills, knowledge, and experience through explicit stages and indicators making this one of the most innovative HR tools yet. Contact us to learn how Community™ Skills can work for you.

Want to know if your existing compensation practices have the elements of a good compensation program or if there are areas that could use some improvement? Take our quick Compensation Program Assessment Quiz to know your score!

Bianca manages our Marketing Team in Manila. She crafts messaging around Community™ concepts and develops promotional campaigns answering why Community™ should be each organization’s preferred solution, focusing on its simplicity and integrated approach. She has held various roles within Birches Group since 2009, starting as a Compensation Analyst and worked her way to Compensation Team Lead, and Training Program Services Manager. In addition to her current role in marketing and communications, she represents Birches Group in international HR conferences with private sector audiences.

Follow us on our LinkedIn for more content on pay management and HR solutions.

WHY YOU NEED TO ASSESS THE SKILLS OF YOUR EMPLOYEES

Written by Kai Donesa on . Posted in Resources.

Organizations typically provide a range of pay for each job. And what these pay ranges represent is the value an organization places on experience within a grade level. Traditionally, pay ranges are divided into steps or increments awarded on a fixed calendar schedule. When an employee moves up a step, this usually indicates satisfactory performance was achieved. But what often happens is that organizations move staff through the steps simply because another year has passed.

While the general belief is that over time, with experience, the value of work carried out by an employee should increase, we know this isn’t always the case. Organizations can have staff who have been in their roles for ten years but only show minimal progression or improvement in their quality of work. Other times, an employee can be in a job for less than two years, but they learn fast and deliver timely and quality outputs proving an increase in tenure does not always equal an increase in the value of work.

The question managers and supervisors should ask is, “How can we measure experience without relying on time or tenure as a proxy?” “And if we continue to award pay increases each year to staff, how can we determine that the knowledge of our staff also grows at the same pace?”

The lack of an approach to move staff through the pay range continues to be a challenge for many organizations. And while the alternative approach to steps applied by many organizations is to use merit increases as a basis to manage pay movement, we know that this approach is just as flawed.

In our article, Pay for Performance is HR’s Biggest Epic Fail, the problem with using performance as the basis for pay movement is that it rewards an employee’s one-time achievement through a salary increase even if we know that their performance may not be the same the following year. Further, the rubric designed to determine increase differentials among staff is often so minimal that it has no impact and does little for employee retention.

We all know performance management can be tedious and difficult. But we all also know that they are important. So, what’s the alternative? In Birches Group, we have a different approach, and it is simpler than you think!

WHY SHOULD YOU ASSESS YOUR EMPLOYEES’ SKILLS?

We believe that pay movement should be linked to skills growth and knowledge. It is known that as one learns and develops further into their roles, they acquire more experience and skills that allow them to deliver faster, better-quality work. And because skills are accumulated and cannot be unlearned, there is a sustained value to the organization making it a more reliable basis for salary increases.

But beyond pay management, assessing the skills of your staff will also greatly support your organization’s strategies around capacity building and career development. Knowing the skill level of your entire workforce enables managers to identify and create the necessary initiatives that will help close existing skills gaps and facilitate the movement of staff, either deeper into their grade or promotion to the next higher level.

In our next articles, we will go deeper into our approach to measuring skills and how it can support many of your talent management programs from pay movement, learning and development, and recruitment and career planning. Contact us to learn more.

Want to know if your existing compensation practices have the elements of a good compensation program or if there are areas that could use some improvement? Take our quick Compensation Program Assessment Quiz to know your score!

Bianca manages our Marketing Team in Manila. She crafts messaging around Community™ concepts and develops promotional campaigns answering why Community™ should be each organization’s preferred solution, focusing on its simplicity and integrated approach. She has held various roles within Birches Group since 2009, starting as a Compensation Analyst and worked her way to Compensation Team Lead, and Training Program Services Manager. In addition to her current role in marketing and communications, she represents Birches Group in international HR conferences with private sector audiences.

Follow us on our LinkedIn for more content on pay management and HR solutions.

Pay Management using Skills-based Approach

USING SKILLS-BASED APPROACH FOR PAY MANAGEMENT

Written by Kai Donesa on . Posted in Resources.

One of the most significant responsibilities of human resources is pay management. Without a clear and objective way to manage salaries, managers are frustrated, employees are disappointed and organizations risk losing employee engagement. Traditional approaches use “merit” increases tied to individual performance don’t really work well, failing to achieve the key objectives of the process – to motivate and retain staff, and to differentiate between staff based on performance.  We think there is a better way.

As we explained in our article about Pay for Performance, pay management consists of two critical parts – recognizing the accumulation of skills and knowledge for the job, and rewarding individual and team achievement.  In this article, we will explore our ideas about how skills and knowledge can drive pay.

Skills, Not Time

If you ask any manager who their best employees are, they will know.  Dig a little deeper, and you will hear things like “Sophia is very experienced” and “Marc really knows the job well.”  In a lot of cases, these star employees have been in their jobs for a while.  Managers often use time as a proxy to measure experience – the longer the time in the job, the better the employee gets at doing it.  Sometimes, though, an employee with a short tenure excels at their job – their level of skill is one typically observed after a longer period.

Birches Group believes pay movement should reflect the value of an employee’s experience in their role.  Over time, employees gain experience through the accumulation of skills and knowledge.  It follows that growth in salary should be a recognition of growth in skills and knowledge.  The challenge is how to measure it, and how to apply the measurement to salary management.  Time is a terrible way to measure experience. 

Responsible pay management should be based on a framework that can clearly measure an employee’s capacity, rather than their achievement. As an employee grows and develops a deeper understanding of their role over time, the required skills and expected outputs naturally become bigger and more complex. Staff need to continuously learn and develop new skills to enable them to engage and deliver work at higher, more intricate levels.  In this model, growth in skills and knowledge drives increases in pay.

The Five Stages of Knowledge

Birches Group has developed Community™ Skills, a tool to measure experience.  In the Skills tool, we have identified five Skills Stages at each grade level:

  • The Basic stage reflects the minimal acceptable understanding of the job and is capable of addressing simple issues in standard operational settings.
  • The Proficient stage reflects the level of understanding of work where more complex issues can be addressed and the employee can adapt to most operational settings.
  • The Skilled stage is achieved with a complete conceptual understanding of the job and the ability to be effective in all types of operational settings.
  • The Advanced stage shows the level of knowledge that enables a high degree of independence in the job and reflects a broad understanding of concepts that also overlaps with the next higher grade level.
  • The Expert stage indicates the highest level of understanding of the job and overlaps with the next higher grade level. The level of understanding found at the master stage also allows for advising on process and systems improvements, which in turn results to better outputs and stronger capacity.

These Skills Stages were developed using the Birches Group Community™ Jobs approach as the underlying foundation.  For each Birches Group level, milestones are defined by Skills Stage for each of six Indicators – two Indicators for each job evaluation factor – as shown in the chart below:

Birches Group Community™ Jobs approach

With six Indicators and five Skills Stages, there are a total of thirty (30) milestones to measure skills and knowledge per grade.

Aligning Skills to Pay

In a salary range, there are three important points – the minimum, the midpoint, and the maximum. The midpoint of a pay range represents full capacity for that particular role, while the minimum reflects entry level experience for that grade, and the maximum shows a highly developed level of skill that may overlap with the next higher grade. Using these three points in the pay range, we can easily establish a mapping of the Skill Levels to pay ranges:

The illustration above can be applied to most grade levels.

Pay Management Using the Community™ Skills Solution

With the five Skills Stages mapped to the salary range, it is possible for any organization to easily manage pay clearly and objectively. Using Birches Group’s Community™ Skills solution, pay increases are linked to increases in Skills Stage.  Organizations can determine the specific set of rules to govern these increases.

For example, you can grant pay increases when a new Skills Stage is fully achieved.  Another approach is to grant an increase for partial achievement, with a proportionate reduction in the increase amount.  You can also require that growth be broad and encompass milestones from each of the three factors, to ensure well-rounded growth is being rewarded.  Organizations could even pay per milestone.

This innovative approach to pay management eliminates the guesswork for managers and HR and assures that pay increases are explicitly tied to an employee’s growth in their job.  Organizations can objectively measure experience and ensure that higher salaries are paid to those employees who are the most capable in their job.  At the same time, the skills-based approach to pay management is motivating and empowering for staff.  There are clear milestones to strive towards, and managers can conduct meaningful discussions with their staff about how best to grow their skills and grow their career.

Finally, an objective and deliberate framework that can truly allow for an engaged workforce. Contact us to learn more about Community™ Skills.

Bianca manages our Marketing Team in Manila. She crafts messaging around Community™ concepts and develops promotional campaigns answering why Community™ should be each organization’s preferred solution, focusing on its simplicity and integrated approach. She has held various roles within Birches Group since 2009, starting as a Compensation Analyst and worked her way to Compensation Team Lead, and Training Program Services Manager. In addition to her current role in marketing and communications, she represents Birches Group in international HR conferences with private sector audiences.

Follow us on our LinkedIn for more content on pay management and HR solutions.