The present disclosure relates generally to tools to determine compensation and, more particularly, to a system, method and computer program product to determine workforce compensation.
The ability to analyze compensation quickly and easily across an entire organization is difficult to achieve. Without the ability to compare compensation to peers and competitors, organizations cannot make informed pay decisions. For example, the organization may be paying employees in less critical roles above the market-rate or paying top performers below the market-rate. The latter issue may increase attrition and decrease productivity and revenue. Also, compensation strategies that are not aligned to peers or geography make it difficult to attract top talent.
In a first aspect of the present disclosure, a method of comparing compensation, comprises: obtaining, by a computer system, a compensation benchmark for a particular job; obtaining, by the computer system, information of employees for the particular job title; and generating, by the computer system, a comparison of compensation of the employees for the particular job title and the compensation benchmark.
In another aspect of the present disclosure, there is a computer program product for providing competitive compensation to employees of an organization. The computer program product includes one or more computer readable storage media having program instructions collectively stored on the one or more computer readable storage media. The program instructions are executable to: obtain selected target market settings; obtain benchmark compensation associated with the selected target market settings; and determine competitiveness of an organization's compensation based on the selected target settings and the benchmark compensation; and provide a report with recommendations to ensure the competitiveness of the organization's compensation.
In a further aspect of the present disclosure, there is a computer system. The system includes a processor, a computer readable memory, one or more computer readable storage media, and program instructions collectively stored on the one or more computer readable storage media. The program instructions are executable to determine market compensation of an employee by comparing current compensation of an employee based on market settings associated with a predetermined job title or job description with a benchmark compensation for the predetermined job title or job description.
Aspects of the present disclosure are described in the detailed description which follows, in reference to the noted plurality of drawings by way of non-limiting examples of exemplary embodiments of the present disclosure.
The present disclosure relates generally to tools to determine comparisons of compensation and, more particularly, to a system, method and computer program product (hereinafter also referred collectively as “tools”) to compare compensation across different organizations. In accordance with aspects of the present disclosure, the tools provided herein are capable of assessing the competitiveness of compensation across an entire organization using benchmarking capabilities. For example, the tools are configured to and capable of allowing clients to identify jobs and employees above or below market pay, identify outliers within the organization, and build retention and compensation strategies based on the insights gleaned from the compensation comparisons. Advantageously, by implementing the tools described herein, it is now possible to, amongst other features: (i) analyze compensation quickly and easily across the entire organization; (ii) compare compensation to peers and competitors, and within organizations to make informed pay decisions; (iii) adjust pay scales for those in less critical roles as well as top performers that are below market-rate; (iv) decrease attrition and increase productivity and revenue; and (v) devise compensation strategies that are aligned to peers or geography to attract top talent.
In more specific embodiments, the tools provided herein provide a technical solution to a technical problem of comparing compensation, and properly devising and implementing pay scales and strategies that meet industry standards for geography, tenure of employee, job title/description and other factors. The tools provided herein may aggregate data from disparate systems regarding a plurality of factors associated with employment information and geographic region, perform analysis on the data using machine learning and/or neural network computing to construct comparisons of worker compensation based on different criteria, and provide reports, notifications and recommendations based on worker compensation comparisons, which can be used to provide notifications to the organization, e.g., managers, human resources personnel, etc., to generate or provide remedial solutions.
For example, the tools provided herein are configured to and are capable of providing the following functionality on a computing infrastructure, system, or computer program product (e.g., software product):
Implementations of the present disclosure may be a computer system, a computer-implemented method, and/or a computer program product. The computer program product is not a transitory signal per se, and may include a computer readable storage medium (or media) having computer readable program instructions thereon for causing a processor to carry out aspects of the present disclosure. As described herein, the computer readable storage medium (or media) is a tangible storage medium (or media). It should also be understood by those of skill in the art that the terms media and medium are used interchangeable for both a plural and singular instance.
As shown in
The bus 110 permits communication among the components of computing device 105. For example, bus 110 may be any of several types of bus structures including a memory bus or memory controller, a peripheral bus, and a local bus using any of a variety of bus architectures to provide one or more wired or wireless communication links or paths for transferring data and/or power to, from, or between various other components of computing device 105.
The processor 115 may be one or more processors or microprocessors that include any processing circuitry operative to interpret and execute computer readable program instructions, such as program instructions for controlling the operation and performance of one or more of the various other components of computing device 105. In embodiments, processor 115 interprets and executes the processes, steps, functions, and/or operations of the present disclosure, which may be operatively implemented by the computer readable program instructions.
For example, processor 115 enables the computing device 105 to assess an organization's compensation strategy compared to other similar organizations within a client base by using different criteria including, e.g., geography, job title, job description, tenure of employee, industry, etc. The comparisons may be based on benchmarks formulated from information from similar organizations. These benchmarks may be based on job type, tenure, dates, geographic locations, employees, etc. This serves as the organization's benchmark, which can be changed or refined. In this way, organizations can summarize their overall compensation by role and/or by employee or other metric, and view market gaps between their compensation and the marketplace (e.g., based on geography, tenure, etc.).
The processor 115 also provides quantitative measures to illustrate investment needed to bring an organization's compensation to a target percentile in their market. The compensation insight function details the parameters, for example, average tenure and turnover rate for their peers, to further assess how competitive their pay is compared to a particular market.
The processor 115 further provides benchmarking capabilities at the international, national, state and other micro geographic levels. As an example, the national level may be calculated using data from the whole country while the state level analysis uses data from each state, leading to significant differences in the benchmark calculations depending on the state(s) where employees are located. Users can further tailor their benchmarks with settings based on additional filters such as revenue size, number of employees, and industry, etc. As part of the set-up, clients can match the jobs at their organization to a job's taxonomy including those provided by government through, for example, the Bureau of Labor Statistics or a service provider (e.g., ADP Inc.). Once set up is complete, users will have easy access to the data they need to verify where they are lagging or leading in compensation compared to their competitors.
In embodiments, processor 115 may receive input signals from one or more input devices 130 and/or drive output signals through one or more output devices 135. The input devices 130 may be, for example, a keyboard, touch sensitive user interface (UI), etc., as is known to those of skill in the art such that no further description is required for a complete understanding of the present disclosure. The output devices 135 can be, for example, any display device, printer, etc., as is known to those of skill in the art such that no further description is required for a complete understanding of the present disclosure.
The storage device 120 may include removable/non-removable, volatile/non-volatile computer readable media, such as, but not limited to, non-transitory media such as magnetic and/or optical recording media and their corresponding drives. The drives and their associated computer readable media provide for storage of computer readable program instructions, data structures, program modules and other data for operation of computing device 105 in accordance with the different aspects of the present disclosure. In embodiments, storage device 120 may store operating system 145, application programs 150, and program data 155 in accordance with aspects of the present disclosure.
The system memory 125 may include one or more storage mediums, including for example, non-transitory media such as flash memory, permanent memory such as read-only memory (“ROM”), semi-permanent memory such as random access memory (“RAM”), any other suitable type of storage component, or any combination thereof. In some embodiments, an input/output system 160 (BIOS) including the basic routines that help to transfer information between the various other components of computing device 105, such as during start-up, may be stored in the ROM. Additionally, data and/or program modules 165, such as at least a portion of operating system 145, application programs 150, and/or program data 155, that are accessible to and/or presently being operated on by processor 115 may be contained in the RAM.
The communication interface 140 may include any transceiver-like mechanism (e.g., a network interface, a network adapter, a modem, or combinations thereof) that enables computing device 105 to communicate with remote devices or systems, such as a mobile device or other computing devices such as, for example, a server in a networked environment, e.g., cloud environment. For example, computing device 105 may be connected to remote devices or systems via one or more local area networks (LAN) and/or one or more wide area networks (WAN) using communication interface 140.
As discussed herein, computing system 100 may be configured to provide compensation comparisons. In particular, computing device 105 may perform tasks (e.g., process, steps, methods and/or functionality) in response to processor 115 executing program instructions contained in a computer readable medium, such as system memory 125. The program instructions may be read into system memory 125 from another computer readable medium, such as data storage device 120, or from another device via the communication interface 140 or server within or outside of a cloud environment. In embodiments, an operator may interact with computing device 105 via the one or more input devices 130 and/or the one or more output devices 135 to facilitate performance of the tasks and/or realize the end results of such tasks in accordance with aspects of the present disclosure. In additional or alternative embodiments, hardwired circuitry may be used in place of or in combination with the program instructions to implement the tasks, e.g., steps, methods and/or functionality, consistent with the different aspects of the present disclosure. Thus, the steps, methods and/or functionality disclosed herein can be implemented in any combination of hardware circuitry and software.
As depicted in
Cloud computing environment 200 may be configured such that cloud resources 205 provide computing resources to client devices 210 through a variety of service models, such as Software as a Service (SaaS), Platforms as a service (PaaS), Infrastructure as a Service (IaaS), and/or any other cloud service models. Cloud resources 205 may be configured, in some cases, to provide multiple service models to a client device 210. For example, cloud resources 205 can provide both SaaS and IaaS to a client device 210. Cloud resources 205 may be configured, in some cases, to provide different service models to different client devices 210. For example, cloud resources 205 can provide SaaS to a first client device 210 and PaaS to a second client device 210.
Cloud computing environment 200 may be configured such that cloud resources 205 provide computing resources to client devices 210 through a variety of deployment models, such as public, private, community, hybrid, and/or any other cloud deployment model. Cloud resources 205 may be configured, in some cases, to support multiple deployment models. For example, cloud resources 205 can provide one set of computing resources through a public deployment model and another set of computing resources through a private deployment model.
In embodiments, software and/or hardware that performs one or more of the aspects, functions and/or processes described herein may be accessed and/or utilized by a client (e.g., an enterprise or an end user) as one or more of a SaaS, PaaS and IaaS model in one or more of a private, community, public, and hybrid cloud. Moreover, although this disclosure includes a description of cloud computing, the systems and methods described herein are not limited to cloud computing and instead can be implemented on any suitable computing environment.
Cloud resources 205 may be configured to provide a variety of functionality that involves user interaction. Accordingly, a user interface (UI) can be provided for communicating with cloud resources 205 and/or performing tasks associated with cloud resources 205. The UI can be accessed via a client device 210 in communication with cloud resources 205. The UI can be configured to operate in a variety of client modes, including a fat client mode, a thin client mode, or a hybrid client mode, depending on the storage and processing capabilities of cloud resources 205 and/or client device 210. Therefore, a UI can be implemented as a standalone application operating at the client device in some embodiments. In other embodiments, a web browser-based portal can be used to provide the UI. Any other configuration to access cloud resources 205 can also be used in various implementations.
In embodiments, the various user interfaces shown in
As shown in
In embodiments, the Compa-ratio is a measure that expresses current pay rates as a percentage of range midpoints. For example, where the midpoint of a pay range represents full market pay, the ratio of the employee's actual salary to that midpoint indicates whether the employee is paid below, at or above market rates.
As further shown in
As shown in
Referring to
In any of the user interfaces shown herein, the search may be based on, e.g., job title, benchmark job, organization, comparison ratio, employees, base salary details, total cash details, job data and metrics, etc. For example, the job data and metrics may be based on turnover rate, time to fill position, FLSA status, and average tenure for an employee. Each of these particular filters may be used in order to gather different information for a comparison of job title, employees, compensation, overview, etc. These different criteria may then be displayed in the expanded view 325 in a column format for example.
The expanded view 325 may include other granular information using, for example, a box 335 as shown in
Similarly, as shown in
In the user interface 350, the user selected production assistant. The user may select certain benchmark preferences as shown in menu 355. The benchmark preferences may be used for comparisons of the user's organization, based on the same criteria. For example, a benchmark of salary based on a geographic location would be used to compare a salary of an organization in the same geographical location. As with use of any of the benchmarks, should the salary of the employee of the organization within the same geographical location be lower than the benchmark, it may be indicative that the employee is underpaid, possibly leading the employee to seek a new job with a more competitive compensation.
The preferences may include industry 360 or other search criteria 365 based on a particular geographic location, e.g., national, regional state, etc. (as shown in
Once these criteria are selected, the user interface 350 will automatically show comparisons based on a particularly selected geographic region, e.g., region, state or national, etc. to the benchmarks, for example and to other employees with the same job title or other filtered criteria selected by the user. The comparison can be provided in a graphical format (e.g., bar graph) in order to compare base salary, bonuses and total cash compensation as an example.
As further shown in
In
For example,
The tools provided herein may provide the user, organization or other party, e.g., manager, human resources, with notifications that an employee is above or below a benchmark or within a certain percentile of compensation for a particular job type in a particular region, amongst other comparisons. The notification may be an email, text message or other type of notification known to those of ordinary skill in the art such that no further explanation is required for a complete understanding of the present invention. These notifications may be pushed or pulled notifications. Also, these notifications may include recommendations of remedial actions or recommendations such as providing different compensation schemes to the employees. This compensation may include, e.g., cash salary, bonuses, additional paid leave etc., based on the benchmarks and/or industry standards, for example. This will allow the organization to be proactive with respect to the worker compensation to ensure worker retention, etc.
Accordingly, in view of the above, it should now be understood that the user interfaces described with respect to
The user interfaces described with respect to
Market gap represents the difference on compensation between an organization and a target market which is comparing to. The market gap can be calculated at different levels, e.g., organization level, job level or employee level.
For example, a calculation for a company with 3 employees and 2 job titles with 50th target percentile would be as follow:
Your org=$75 k+$110 k+$104 k=$289 k
Market (50th percentile)=$70 k+$115 k+$115 k=$300 k
Market Gap=ABS(Your Org−Market)=ABS($289 k−$300 k)=ABS(−$11 k)=$11 k
%=(Your Org/Market−1)*100=($289 k/$300 k−1)*100=−3.7%
Base salary=SUM(base salary of all employees with specific job title)
Market=SUM(market base salary of all employees with specific job title)
Market Gap=ABS(Base salary−Market)
%=(Base salary/Market−1)*100
Partnership Analyst
Market Gap=ABS($75 k−$70 k)=ABS($5 k)=$5 k
%=($75 k/$70 k−1)*100=+7.1%
Senior Accountant
Market Gap=ABS($110 k+$104 k−$115 k−$115 k)=ABS(−$16 k)=$16 k
%=(($110 k+$104 k)/($115 k+$115 k)−1)*100=−6.9%
Arindam
Market Gap=ABS($75 k−$70 k)=ABS($5 k)=$5 k
%=($75 k/$70 k−1)*100=+7.1%
Sriranjani
Market Gap=ABS($110 k−$115 k)=ABS(−$5 k)=$5 k
%=($110 k/$115 k−1)*100=−4.3%
Curro
Market Gap=ABS($104 k−$115 k)=ABS(−$11 k)=$11 k
%=($104 k/$115 k−1)*100=−9.5%
As further noted, the interfaces described herein summarizes the compensation situation in an organization by employee or job title, etc. Market gaps are determined based on every employee's compensation and the benchmark compensation for the market as user defined settings. Multiple compensation parameters can be found based on demographics, individual and organizational details to help further assess employees' compensation competitiveness. Calculations may be performed using active employees (or with leave of absence at the moment) whose job title has been matched to a service provider (e.g., ADP). The tool identifies and highlights those employees with jobs that have not been matched, though no market comparison is provided for these, thereby may not be accounted for the market gap calculations.
The geography level computation defines the level at which the benchmarks are being calculated. The national level is calculated using data from the whole country while the state level uses data from each particular state only. Other levels of granularity are also contemplated herein. This can therefore lead to significant differences in the benchmark calculations depending on what state your employees are. To illustrate the differences from National vs State, the following example is provided in the following table.
As further described herein, it is possible to use target market settings, e.g., preferences (filters) when analyzing data. These preferences can be used to benchmark an organization against a more refined or limited benchmark dataset. The benchmarks are preferably as broad as possible, while still staying relevant to benchmark needs. The more specific the benchmark selection, the less benchmark data available. These benchmarks may include:
Data as of (
This provides the user with the ability to select benchmarks against a particular month or other date range. Whenever latest benchmarks are generated, a popup may be provided to the user to switch to the latest month or other time period, as an example. If the user changes to another period, then the selection of the industry and organization profile settings selection is lost.
Percentile (
This allows the user to identify outliers quickly based on selection of base salary at 10th and 90th percentile. Users would be able to select different percentiles (10th, 25th, average, 50th, 75th, 90th) to compare against the market based on their compensation strategy.
Industry (
This allows the user to select the market pay based on the industry that they belong to. This may be based on the standard NAICS (North American Industry Classification System) industry hierarchy. The more generic the industry, the greater the number of organizations in the dataset and likelihood of rendering data. Of course, using a “Single Industry” to view benchmarks would get the user as close to their organization as possible. The industry hierarchy may start at the “Single Industry” level, which is the most granular level. This maps to NAICS6 in the NAICS. There can be, for example, 7 supersectors, 27 sectors, and 147 subsectors, and ˜1K single industries.
Geography (
This allows the user to select either state or national or other geographical level for determination of the benchmarks as per their compensation strategy.
Revenue Size (
This allows the user to select different revenue bands to see how users of similar revenue size are paying differently in the market.
Employee Size (
This allows the user to select different employee ranges to see how users of similar employee size are paying differently in the market.
Ownership Type (
This allows the user to select Government Agency, Non-Profit, For Profit to see how clients of similar ownership type are paying differently in the market.
Compensation by (
This allows the user to select Job Level/Tenure Band to determine market gap as close to the employee level/experience within the organization. The user can select ‘None’ if they would want to compare against generic market pay.
If benchmarks are not available for a respective job level, the benchmark/AScore data for the job (without levels) are considered for determining market gap. The AScore may be an estimate of compensation across many dimensions such as job title, location, and industry. The AScore factors in multiple data points from clients and government agencies such as the Bureau of Labor Statistics (for US only). It also incorporates geographic and economic development indicators and job market dynamics (that is, supply and demand). In searches where both the AScore and benchmarks, the AScore can be used as supplemental information. The AScore may provide an adjusted compensation estimate that mitigates for potential biases that may exist in client data, such as having too many small-sized clients in a specific search.
The tools (e.g., server/device) may include additional or fewer modules than those shown in
More specifically, at step 1, the process flows to a data cloud landing page, at which stage a user may enter the system. At step 2, the process flows to a benchmark tools landing, at which stage benchmark data may be obtained. At step 3, the process flows to a compensation benchmarking, at which stage benchmark compensation may be obtained and/or entered. At step 4, a compensation analysis is performed. At step 5, a compensation overview is generated and, in embodiments, provided to a user. At step 6, all jobs or subset of jobs can be analyzed within an organization. This may include, for example, exporting a job list at step 7. At step 8, all employees or subset of employees can be analyzed within an organization. This may include, for example, exporting an employee list at step 9.
At step 10, a job snapshot can be generated and presented. At step 11, the process can generate a view of employees for the specific job and at step 12, the process can generate a view of job work locations. At step 13, the process can export the employee list. At step 14, the processes will determine whether the matched job is correct. If yes, the process will revert back to step 10, at which time a new description of the job or job title may be used to again generate the comparison features. If not, the process can continue to step 15 at which time an open hob matching may be provided through an external link.
The foregoing examples have been provided merely for the purpose of explanation and are in no way to be construed as limiting of the present disclosure. While aspects of the present disclosure have been described with reference to an exemplary embodiment, it is understood that the words which have been used herein are words of description and illustration, rather than words of limitation. Changes may be made, within the purview of the appended claims, as presently stated and as amended, without departing from the scope and spirit of the present disclosure in its aspects. Although aspects of the present disclosure have been described herein with reference to particular means, materials and embodiments, the present disclosure is not intended to be limited to the particulars disclosed herein; rather, the present disclosure extends to all functionally equivalent structures, methods and uses, such as are within the scope of the appended claims.
Number | Date | Country | Kind |
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202211039344 | Jul 2022 | IN | national |