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Wednesday, May 25, 2011

Alternative Methods of Compensation - Part 3 | OPTIMIZING YOUR ORGANIZATION

Optimizing Your Organization with Jason Buchanan


Welcome to part 3 of our discussion on alternative methods of compensation! We’re rounding third now and heading for home. When we last parted, I left you with this thought: you can have the greatest product at the best price, but if a customer has to endure an employee who is unhappy, what kind of ambassador are they for your organization?

In this age of technology, business happens on a 24 hour a day, seven day a week, 365 day a year schedule. Why then, do companies have a blanket work schedule of eight hours a day, five days a week? In a recent Nelson Motivator survey [July 2010] of 15,000 employees in the United States, flexible work hours were cited as the second most important point considered when choosing a new job. Yes…sadly wages were numero uno!

As we discussed in the first installment of this topic; let your compensation package express how you value your employees. Here are some alternative methods of compensation suggestions to add to your tool box of benefits that may just gain that coveted employee, or better yet, keep the ones you currently have.

Flex Time – Example, a company is open from 8:00 – 5:00. Core hours are 10:00 – 2:00; staffing from 8:00 – 10:00 (before core hours) and 2:00 – 5:00 (after core hours) are flexible time. This allows parents to get kids off to school, make doctor appointments, maybe even coach their sons football team and their daughters softball team (hey- it worked for me!) This schedule also allows everyone to be at meetings, presentations, or whatever else is time-sensitive from the organizations standpoint during the core business hours.

Compressed work schedules allow employees to work more than eight hours per day in order to complete the basic work requirements in fewer than a five or ten day work week. Compressed work schedules have predetermined work hours and days off. The two most popular models of compressed work schedules are:
  • 4/10 model: A schedule in which employees work four, ten hours days to meet the 40 hour work week. This is the most popular form of compressed work schedule in that almost every work week has a guaranteed three day weekend. Another variation of this is to have some employees work Monday – Thursday and others work Tuesday – Friday. This still provides coverage for all 5 days of the week!

  • 5/4/-9 model: This schedule is a variant of the 4/10 model, but instead of working an extra two hours per day, employees only work one extra hour. In a bi-weekly pay period, employees work five days during the first week and four days the last week for a total of 80 hours. This schedule also provides for a three day weekend every other week.

Job Sharing: 2 part time employees sharing a job. An experienced employee looking to reduce hours and eventually retire in a few years and mom with school aged kids. Neither have the ability from a time standpoint nor desire to work full time, but both want to and are able to contribute greatly in a job-sharing capacity. As a bonus, from a tax and benefit position, it can be advantageous to a company to have 2 part-time employees.

Time after time, the main argument I hear from supervisors can be classified as “if I can’t see them; they must not be working.” To this I respond; if you have to see them to know they are working you have either a) hired the wrong people or b) failed to adequately train them! But I am jumping the gun…we’ll talk about those issues next month!

For more information, please visit Jason's TNNWC Bio.


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