Method and apparatus for integrating competency measures in compensation decisions

• US 6,338,042 B1
• Filed: 07/10/1998
• Issued: 01/08/2002
• Est. Priority Date: 07/10/1998
• Status: Expired due to Term

• Current Assignee: Unify Inc. (Atos SE)
• Original Assignee: Siemens Information And Communication Networks, Inc. (Siemens AG)
• Inventors: Paizis, James N.
• Primary Examiner(s): Thompson, Jr., Forest
• Application Number:
  US09/113,948
• Time in Patent Office: 1,278 Days
• Field of Search: 705/11, 705/2, 705/7
• US Class Current: 705/7.37
• CPC Class Codes: G06Q 10/06 Resources, workflows, human or project management; Enterprise or organisation planning; Enterprise or organisation modelling
• CPC Class Codes: G06Q 10/06375 Prediction of business process outcome or impact based on a proposed change
• CPC Class Codes: G06Q 10/06398 Performance of employee with respect to a job function
• CPC Class Codes: G06Q 10/10 Office automation; Time management

Abstract

Methods and apparatus for incorporating measures of competency and contribution into pay decisions are disclosed. According to one aspect of the present invention, a computer-implemented method for automating compensation decisions includes obtaining indications of performance for a group of individuals in a common role. Relative rankings are produced for the group of individuals based at least in part upon an analysis of the indications of performance, and are compared to distribution data that is relevant to the common role. The comparison of the relative rankings to the distribution data is used to determine a suggested level of compensation for each individual in the group of individuals. In one embodiment, obtaining indications of performance for the group of individuals includes obtaining quantifications of competency and contribution for each of the individuals.

Claims

1. A computer-implemented method for automating compensation decisions, the computer-implemented method comprising:

obtaining indications of performance for a group of individuals, the individuals being associated with a common role, wherein the indications of performance are arranged to quantify the performance of the individuals with respect to the common role;

obtaining distribution data, the distribution data being relevant to the common role;

producing relative rankings for the group of individuals based at least in part upon the indications of performance, wherein producing the relative rankings includes analyzing the indications of performance;

identifying a reference point in the relative rankings, the reference point being approximately a median ranking in the relative rankings, wherein the reference point is arranged to facilitate a comparison between the relative rankings and the distribution data;

determining a suggested level of compensation for each individual in the group of individuals based on the comparison of the relative rankings to the distribution data; and

generating a display, the display including a representation of the suggested level of compensation for each individual in the group of individuals.

2. A computer-implemented method as recited in claim 1 wherein obtaining indications of performance for the group of individuals includes obtaining quantifications of competency and contribution for each of the individuals included in the group of individuals.

3. A computer-implemented method as recited in claim 2 wherein producing the relative rankings for the group of individuals includes processing the quantifications of competency and contribution for each of the individuals included in the group of individuals using a regression algorithm.

4. A computer-implemented method as recited in claim 1 wherein obtaining the indications of performance includes receiving the indications of performance from a user through a graphical user interface.

5. A computer-implemented method as recited in claim 1 wherein comparing the relative rankings to distribution data includes:

determining a median distribution value, the median distribution value being approximately a median value in the distribution data; and

correlating the relative rankings to the distribution data using the median distribution value and the reference point.

6. A computer-implemented method for incorporating a performance evaluation of a selected individual into a determination of a pay target for the selected individual, the selected individual being one of a group of individuals, the computer-implemented method comprising:

obtaining a measure of competency for the selected individual, wherein the measure of competency is determined using the performance evaluation, the measure of competency being arranged to reflect a level of competency of the selected individual;

processing the measure of competency to obtain an overall score, wherein processing the measure of competency includes applying a regression formula to the measure of competency;

producing a ranking for the selected individual with respect to the group of individuals using the overall score;

identifying a reference ranking with respect to the group of individuals;

computing the pay target for the selected individual using the ranking the reference ranking, and distribution data; and

displaying the pay target for the selected individual.

7. A computer-implemented method as recited in claim 6 further including:

obtaining a measure of contribution for the selected individual, wherein the measure of contribution is determined using the performance evaluation, the measure of contribution being arranged to reflect a level of contribution by the selected individual; and

processing the measure of contribution to obtain the overall score, wherein the regression formula is applied to both the measure of competency and the measure contribution.

8. A computer-implemented method as recited in claim 6 further including:

obtaining a revised ranking for the selected individual with respect to the group of individuals; and

replacing the ranking with the revised ranking, wherein computing the pay target for the selected individual includes using the revised ranking.

9. A computer-implemented method as recited in claim 6 wherein computing the pay target for the selected individual further includes:

computing a target market pay value for the selected individual using the ranking and the distribution data; and

evaluating the target market pay value and available budget to determine the pay target.

10. A computer-implemented method as recited in claim 9 further including obtaining a revised target market pay value, wherein evaluating the target market pay value and the available budget to determine the pay target includes evaluating the revised target market pay value.

11. A computer system arranged to incorporate results of a performance evaluation of a selected individual into a determination of a pay target for the selected individual, the selected individual being one of a group of individuals, the computer system comprising:

a processor;

a receiving mechanism arranged to receive a measure of competency for the selected individual, wherein the measure of competency is obtained from the performance evaluation, the measure of competency being arranged to reflect a level of competency of the selected individual;

a regression mechanism arranged to process the measure of competency to obtain an overall score using a regression formula, the regression mechanism being coupled with the processor;

a ranking mechanism arranged to produce a ranking for the selected individual with respect to the group of individuals using the overall score, the ranking mechanism further being arranged to identify a reference point with respect to relative rankings associated with the group of individuals;

an evaluator arranged to compute the pay target for the selected individual using the ranking, the reference point, and distribution data; and

an output mechanism, the output mechanism arranged to provide a viewable representation of the pay target for the selected individual.

12. A computer system according to claim 11 wherein the receiving mechanism is further arranged to receive a measure of contribution for the selected individual, wherein the measure of contribution is determined using the performance evaluation, the measure of contribution being arranged to reflect a level of contribution by the selected individual, and the regression mechanism is further arranged to process the measure of contribution to obtain the overall score by applying the regression formula to both the measure of competency and the measure of contribution.

13. A computer system according to claim 11 wherein the receiving mechanism is further arranged to receive a revised ranking for the selected individual with respect to the group of individuals, the computer system further including:

a replacement mechanism arranged to replace the ranking with the revised ranking, wherein the evaluator is further arranged to compute the pay target for the selected individual using the revised ranking.

14. A computer system according to claim 11 wherein the evaluator is further arranged to compute a target market pay value for the selected individual using the ranking and the distribution data, and to evaluate the target market pay value and available budget to determine the pay target.

15. A computer system according to claim 14 wherein the receiving mechanism is further arranged to obtain a revised target market pay value, and the evaluator is further arranged to evaluate the revised target market pay value and the available budget to determine the pay target.

16. A computer system according to claim 11 wherein the receiving mechanism is coupled to a graphical user interface.

17. A computer program product comprising a medium for incorporating a performance evaluation of a selected individual into a determination of a pay target for the selected individual, the selected individual being one of a group of individuals, the medium containing computer-readable codes comprising:

code that obtains a measure of competency for the selected individual, wherein the measure of competency is determined using the performance evaluation, the measure of competency being arranged to reflect a level of competency of the selected individual;

code that processes the measure of competency to obtain an overall score, wherein processing the measure of competency includes applying a regression formula to the measure of competency;

code that produces a ranking for the selected individual with respect to the group of individuals using the overall score;

code that identifies a reference point with respect to relative ranking associated with the group of individuals;

code that computes the pay target for the selected individual using the ranking, the reference point and distribution data; and

code that displays the computer pay target for the selected individual.

18. A computer program product according to claim 17 wherein the medium is one of a data signal embodied in a carrier wave, a tape, a computer disk, and a CD-ROM.

19. A computer program product according to claim 17 further including:

code that obtains a measure of contribution for the selected individual, wherein the measure of contribution is determined using the performance evaluation, the measure of contribution being arranged to reflect a level of contribution by the selected individual; and

code that processes the measure of contribution to obtain the overall score, wherein the regression formula is applied to both the measure of competency and the measure of contribution.

20. A computer program product according to claim 17 further including:

code that obtains a revised ranking for the selected individual with respect to the group of individuals; and

code that replaces the ranking with the revised ranking, wherein the computer code that computes the pay target for the selected individual includes computer code that uses the revised ranking to compute the pay target.

21. A computer program product according to claim 17 wherein the code that computes the pay target for the selected individual further includes:

code that computes a target market pay value for the selected individual using the ranking and the distribution data; and

code that evaluates the target market pay value and available budget to determine the pay target.

22. A computer program product according to claim 21 further including code that obtains a revised target market pay value, wherein the code that evaluates the target market pay value and the available budget to determine the pay target includes code that evaluates the revised target market pay value.