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Strong Values + Small Business = Big Rewards The Auburn Manufacturing Story

Strong Values + Small Business = Big Rewards The Auburn Manufacturing Story. Johnna Major, SPHR President, Cornerstone HR Kathie Leonard CEO, Auburn Manufacturing Inc. . Compensation System Changes. Employee Satisfaction Survey

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Strong Values + Small Business = Big Rewards The Auburn Manufacturing Story

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  1. Strong Values + Small Business = Big RewardsThe Auburn Manufacturing Story Johnna Major, SPHR President, Cornerstone HR Kathie Leonard CEO, Auburn Manufacturing Inc.

  2. Compensation System Changes • Employee Satisfaction Survey • Employees didn’t feel they were paid fairly for the work they did • Concern about rewards not recognizing performance • Lack of understanding of pay system • Compensation Program Redesign • Compensation Philosophy • Benchmarking • Ranges established for each job • Lump sum payout approach

  3. New Compensation System • Pay increases are based on two things: • Overall performance review score that equally weights values and job performance • Placement in the salary range • Calibration process • Consistency of process • Rewarding top performers • Budget Minimum Median Maximum Job Range $$ Meeting Expectations Needs Improvement/ Growing Exceeding Expectations

  4. Recognition Program • Recognition program tied to Values • Co-worker nominated • Recognition committee review • Recognition at plant meetings

  5. Recruiting • Develop Values-Based Interview Questions • Ask all candidates: What Values best describe you?

  6. Values-Based Interview Questions

  7. Progress Report • 2014 Satisfaction Survey Results – Change Takes Time • Overall satisfaction stayed the same • Recommend AMI as a good place to work increased from 75 to 88% of employees • Increases in scores on change communication, company recognition, room to advance • “Wait and See” reflected in ‘pay is fair for work that I perform question • Performance Reviews/Salary Planning –Tools Created Alignment • Self Reviews • Great opportunity to give feedback and have a performance –focused conversation • Gave managers ‘language’ to have constructive conversations • Calibration process ensured managers on the same page with evaluation and scoring

  8. Progress Report • Turnover • Slight increase • Replacing with “A Players” • Alignment and agreement on values among managers • Move faster and people are empowered to do their jobs based on our values • More confidence taking risks based on values as the framework for decisions

  9. Lessons Learned • Impact on hiring and firing • Initial resistance when people realize how high the bar was being raised • Skepticism about values-based interviewing • Change takes time – be prepared for the unexpected, but stay the course • Don’t settle – you need to have the right team of “A Players” to grow and also weather the storm • “I should have done it sooner”

  10. What’s Next for AMI • Enhanced recruitment process for all positions • Orientation program • Expanded recognition program • Training based on performance review results • Update AMI website with Values based information • Managers will read Zappos book • Breathing life into the Values (simplify, catchy phrase for each value)

  11. Strong Values + Small Companies = Big Rewards

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