Compensation, Benefits, and Compliance Plan for 2014
According to WorldatWork, forecasts show the average raise in base pay for 2014 in the U.S. is projected to be about 3.0%, which represents a slight increase over 2013 figures. In planning your salary budget for 2014, it is important to consider multiple survey sources to validate your projected pay increases. Salary budgets take into account annual wage changes as well as the cost of recruiting new talent. Published salary budget surveys, including those from WorldatWork, Towers Watson, Mercer and Hay Group may report data by industry, job level (e.g., non-management, management, and executive), number of employees and revenue.
You may also consider setting aside monies for anticipated (e.g., mid-year) promotions and/or market adjustments for certain jobs for which there is significant market movement.
As the end of the year approaches, what can you do as an HR professional to prepare for next year? Below are just a few end-of-year checkpoints to assist you in getting a head start!
- In addition to developing your salary budget, it is good practice to update your salary structures for market movement at least every other year. This will ensure that salary range midpoints are still aligned with market pay for your jobs and that your jobs still fit within the assigned ranges.
- Total Rewards Statements – a great way to educate employees is to make available to them at least annually a statement that outlines their total income opportunity including their contribution toward pay and benefits as well as the employer contribution
- Complete annual performance evaluation on each employee (timing may differ depending upon performance reviews cycle – focal or anniversary) and this is also a good time to review/update job descriptions
- Sales compensation – 2014 sales plans should be updated to reflect 2014 company objectives and sales management should do the hands-on training to ensure commitment from employees and understanding of measurements.
- Conduct a pre-renewal meeting with your insurance carriers
- Prepare for open enrollment by making any necessary system updates and communicate to employees on important deadlines, including those for flexible spending reimbursement (unused funds, grace period)
- Have a Paid Time Off (PTO) policy that has a “use it or lose it” clause? Be sure that any accrued/unused time is paid out and that your system is reset to comply with your policy
- Ensure annual Summary Plan Descriptions (SPDs) for retirement (401(k)) and health plans are up-to-date and distributed to employees
- Ensure compliance with the Affordable Care Act (ACA) – see the article below for compliance tips
- Arrange for employee flu shots
Compliance, Communications & Employee Relations
- Review and update your Employee Handbook to reflect any changes in policies, procedures, or regulations like the Affordable Care Act (ACA)
- Ensure employees are properly classified as exempt or non-exempt
- Determine training needs for 2014, including anti-harassment, leadership, supervisory and communications/interpersonal skills training
- If necessary, order updated Federal and/or State Labor Law posters
- Develop a comprehensive HR communications plan for employees and managers that includes multiple mediums (email, company Intranet, webinars, etc.)
For organizations whose fiscal year does not fall on the calendar year, many of the above activities still apply to the end of the year and may continue throughout the year.
[author] [author_image timthumb=’on’]https://meainfo.org/app/uploads/2014/10/leslie-barringer.jpg[/author_image] [author_info]Leslie Barringer
Director of Compensation & Benefitslbarringer@meainfo.org[/author_info] [/author]