The Compensation Handbook, Sixth Edition: A State-of-the-Art Guide to Compensation Strategy and Design / Edition 6

by Lance A. Berger, Dorothy Berger

Overview

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The most relied-on guide in the industry—now with strategic insight for using compensation strategies and practices to create competitive business advantage

The Compensation Handbook has been a mainstay on the desks of human resources and compensation professionals for more than forty years—and now this revised Sixth Edition continues the tradition with new material and focus on developing a sustainable competitive advantage. The most important revision to date, this transformative edition will enable compensation and human resources practitioners to:

• Provide a road map for creating a fully defined compensation strategy for any organization
• Design and implement an approach for attracting and retaining talent that will remain relevant into the future
• Present programs that allow for the seamless alignment of historic best practices with the latest tools, methods, and diagnostics in compensation

Much of this guide’s longtime success comes from the extraordinary team of highly respected experts from business and academia who share their authoritative knowledge on every aspect of compensation, and this latest edition features more than two dozen new contributors leading the field in their specialties. From using “big data” to solidify compensation decisions to building compensation programs that adapt to rapidly changing business and workforce scenarios to executing successful plays for new talent, retaining essential staffers, and encouraging skill development—The Compensation Handbook, Sixth Edition continues to be a groundbreaking tool that forward-thinking compensation professionals and HR practitioners can use to substantially add value to their companies today and in the future.

Product Details

ISBN-13:	9780071836999
Publisher:	McGraw Hill LLC
Publication date:	06/02/2015
Edition description:	New Edition
Pages:	624
Product dimensions:	7.40(w) x 9.40(h) x 2.10(d)

About the Author

Lance A. Berger is managing partner of Lance A. Berger & Associates, Ltd. in Bryn Mawr, Pennsylvania. He is a recognized consulting authority specializing in compensation, talent management, and change management. He cowrote and coedited the third, fourth and fifth editions of The Compensation Handbook, the first and second editions of The Talent Management Handbook, Management Wisdom from the New York Yankees’ Dynasty, The Change Management Handbook, and Deengineering the Corporation.

Dorothy R. Berger is a partner of Lance A. Berger & Associates, Ltd. She coordinates all organizational activities for the firm and is also a talent management consultant. She cowrote and coedited the fourth and fifth editions of The Compensation Handbook, the first edition and second editions of The Talent Management Handbook, Management Wisdom from the New York Yankees’ Dynasty, The Change Management Handbook, and Deengineering the Corporation.

Table of Contents

Preface xi

Part I Introduction

1 The State of the Compensation Practice Lance A. Berger 3

2 Using a Total Rewards Strategy to Achieve Competitive Advantage Steven E. Gross Mandy Rook 13

3 Aligning Total Compensation Programs with Organization Values and Strategy Thomas B. Wilson 27

4 Winning Compensation Strategies for Organizational Sustainability Dorothy R. Berger 35

5 Excelling as a Compensation Professional Brian Moore Sue Holloway 45

6 Emerging Compensation Issues Joseph J. Martocchio 53

Part II Base Salary

7 Positioning Salary Structures within the Total Rewards Context Andrew S. Rosen 63

8 Selecting and Developing a Salary Structure Michael Armstrong 81

9 Making Merit Pay and Bonuses Matter Myrna Hellerman James Kochanski 89

10 The Purpose and Nature of Job Evaluation Michael Armstrong Paul Thompson 97

11 Optimizing the Use or Salary Surveys Tim Brown 105

12 Rationale for and Approaches to Benchmarking Tom McMullen Iain Fitzpatrick 119

13 Paying for Skills, Knowledge, and Competencies Gerald E. Ledford, Jr. 135

14 Using Nonmonetary Awards to Support Behaviors that Drive Business Results Melissa Van Dyke 143

Part III Variable Compensation

15 Choosing the Incentive Compensation Program that Best Promotes Performance Lindo E. Amuso 157

16 Designing and Implementing Effective Variable Pay Programs Erin C. Packwood 169

17 Aligning Sales Compensation Plan Design with Talent Retention Strategy Jerome A. Colletti Mary S. Fiss 179

18 Developing and Applying a Return-on-Investment Methodology to Drive Sales Force Performance Rebecca Sandberg Carrie Ward 191

19 Creating a Culture of Collaboration, Innovation, and Performance through Team-Based Incentives Luis R. Gomez-Mejia Monica Franco-Santos 199

20 Revolutionizing Workplace Culture through Scanlon Gain Sharing Dow Scott Paul Davis 211

Part IV Executive Compensation

21 Formulating and Implementing an Executive Compensation Strategy Ted Buyniski 225

22 Designing and Executing Long-Term Incentive Plans Ben Burney Bill Gentry 235

23 Regulating Executive Compensation Frank P. VanderPloeg 249

24 Formulating Executive Employment Agreements Andrea S. Rattner 265

25 Cracking the Secret Code of Long-Term Incentives in Private Companies Myrna Hellerman Yelena Stiles 281

Part V Compensation and the Board

26 The Compensation Committee and Executive Pray Seymour Burchman Blair Jones 289

27 Dynamics of CEO Pay David Swinford Jane Park 307

28 Board Compensation Nora McCord 315

29 Structuring Board and Executive Pay Bruce R. Ellig 325

30 Compensation Committee of the Board Robert H. Rock 333

31 Creating an Effective CEO Succession-Planning Process James F. Redo Molly A. Kyle 343

Part VI Performance and Compensation

32 A Framework for Designing a Performance-Management Process Charles H. Fay 355

33 Choosing a Performance-Appraisal System Martin G. Wolf 363

34 Linking Compensation to Competitive Business Value Mark Graham Brown 383

35 Using Financial Rewards to Drive Productivity Christian M. Ellis 391

36 New Developments and Issues in Pay for Performance Mark D. Cannon 397

37 Making Calibration an Integral Part of a Performance-Appraisal System Dick Grote 409

38 Guidelines for Effective Executive Performance Appraisals James F. Reda Molly A. Kyle 423

Part VII Talent Management and Compensation

39 Employing Novel Ways to Use Compensation to Win the Talent Wars Deborah Rees 441

40 Strengthening the Link between Compensation and Return on Investment Mel Stark Mark Royal 451

41 Incorporating Work/Life Effectiveness into a Total Rewards Strategy Kathleen M. Lingle 463

42 A Methodology for Effectively Communicating Compensation Programs John A. Rubino 471

Par VIII Global Compensatio

43 Critical Expatriate Compensation Issues and Practices Roger Herod 481

44 Global Local National Compensation Issues and Practices Jordan Blue Ed Hannibal Ilene Siscovick 493

45 Employing Novel Compensation Approaches to Compete for Expatriate Talent Yvonne McNulty 503

Part IX Big Data

46 A Guide to Realizing the Value of Big Data Lance A. Berger 521

47 Using Workforce Analytics to Make Effective Compensation Decisions Dan Weber 529

48 Making Better Compensation Decisions in the Age of Big Data David B. Turetsky 537

49 Using Big Data to Enhance the Value of Compensation Programs Ezra Schneier 551

50 Turning Data into Compensation Information Martin G. Wolf 561

51 Exploring New Technologies that Enhance Compensation Programs Mykkah Herner 571

Contributors 577

Index 581