netrashetty
Netra Shetty
Principal Financial Group NYSE: PFG is a publicly traded corporation based in Des Moines, Iowa, USA.
The Principal Financial Group (The Principal) is a global financial services provider which offers a wide range of financial products and services, and is a U.S. leader in 401(k) plans. Headquartered in Des Moines, Iowa, the company has more than 18 million customers worldwide. As of September 30, 2009, assets under management exceeded $280 billion. It was ranked 273rd on Fortune magazine’s list of the 500 largest U.S. corporations (May 2009). It has been consistently awarded the distinction as one of the world's most ethical companies
Determining Salary Deviations
The simple average (mean), minimum, midpoint and maximum salaries
from the survey respondents may be used to determine salary deviations.
Surveys conducted by DHRM and agencies do not usually include enough
employers for the median to be useful. However, published national surveys
that include median and other percentile values may provide useful
information.
10
The simple average of responding firms’ data may be used to indicate the
prevailing practice among employers. However, the simple average salary must
be used with care. Employers with a small number of employees in a job will
have a disproportionate effect on the average.
A method to offset this effect is to obtain a weighted average salary.
A weighted average is obtained by adding all of the respondents’ total salaries
for a job and dividing the grand salary total by the total number of employees
reported. The resulting figure is the weighted average salary. When
weighted averages are used, large employers have more influence than smaller
employers on the calculation of the market rate. A weighted average salary is
a more appropriate measure than the simple average (mean) salary in an active
market where large employers are hiring more employees in those jobs than
smaller employers.
Calculating Salary Deviations
Deviations indicate the adjustment that would be necessary for the
Commonwealth’s salary to be equal to the competitors’ average salary. An
average deviation can be calculated for any salary data element that is collected
in a survey, including the range minimum, range midpoint, range maximum and
average salary.
The deviation is computed by subtracting the competitors’ average salary
from the Commonwealth’s corresponding salary (minimum, midpoint,
maximum, or average salary) and dividing that difference by the
Commonwealth’s salary. Multiplying the quotient by 100 gives the percent
deviation. Survey differences are always expressed as a percentage of state
MONETARY AND NON-MONETARY AWARDS
The level of an employee’s contribution to the work unit, agency, and/or the
Commonwealth should be considered when determining the award to be provided to
the employee. Recognition awards may be in the form of monetary and non-
monetary items. Monetary awards are those paid by any negotiable instrument such
as cash, check, money order, and direct deposit. This type of award also includes any
item that can be readily converted to cash such as savings bonds or refundable gift
certificates. Non-monetary awards include items such as non-refundable gift
certificates, meals, trips, plaques, clothing, or other similar items.
TYPES OF EMPLOYEE RECOGNITION PROGRAMS
The three types of employee recognition programs support and enhance the
Commonwealth’s Compensation Management System. Each of these programs are
independent of one another.
1
• Awards for Length of Service
The Commonwealth’s Award for Length of Service program provides
employees non-monetary recognition for years of service with the Commonwealth.
Awards are based on length of service in five-year increments.
• Employee Suggestion Program
Employee Suggestion Programs give agencies a mechanism for recognizing
employees for adopted ideas that improve their agencies’ and the Commonwealth’s
operations. Awards may be monetary, non-monetary, and leave. A percentage of the
savings generated for the agency and/or the Commonwealth is used to determine the
amount of the monetary or leave award.
• Employee Recognition Program
Employee Recognition Programs are designed to encourage employees to
make a performance difference either individually or through teams. These awards
recognize achievements or accomplishments that contribute to the overall objectives
of the agency and state government. The criteria for such awards are different from
and cannot overlap with the criteria of In-Band Adjustments or In-Band Bonuses
described in Chapter 8 Pay Practices.
Agencies must develop an Employee Recognition Program that provides
monetary and non-monetary recognition awards for employees. The total of
monetary and non-monetary awards (excluding recognition leave) shall not exceed
one thousand dollars ($1,000.00) per employee per fiscal year. In addition,
recognition leave of up to five workdays may be awarded to an employee in a leave
year. Recognition leave lapses within twelve months from the date it is awarded.
Agencies may extend the twelve-month retention period for recognition leave if the
agency has been unable to allow the employee to use the leave or may pay out the
leave in accordance with the situations specified in the policy.
The Principal Financial Group (The Principal) is a global financial services provider which offers a wide range of financial products and services, and is a U.S. leader in 401(k) plans. Headquartered in Des Moines, Iowa, the company has more than 18 million customers worldwide. As of September 30, 2009, assets under management exceeded $280 billion. It was ranked 273rd on Fortune magazine’s list of the 500 largest U.S. corporations (May 2009). It has been consistently awarded the distinction as one of the world's most ethical companies
Determining Salary Deviations
The simple average (mean), minimum, midpoint and maximum salaries
from the survey respondents may be used to determine salary deviations.
Surveys conducted by DHRM and agencies do not usually include enough
employers for the median to be useful. However, published national surveys
that include median and other percentile values may provide useful
information.
10
The simple average of responding firms’ data may be used to indicate the
prevailing practice among employers. However, the simple average salary must
be used with care. Employers with a small number of employees in a job will
have a disproportionate effect on the average.
A method to offset this effect is to obtain a weighted average salary.
A weighted average is obtained by adding all of the respondents’ total salaries
for a job and dividing the grand salary total by the total number of employees
reported. The resulting figure is the weighted average salary. When
weighted averages are used, large employers have more influence than smaller
employers on the calculation of the market rate. A weighted average salary is
a more appropriate measure than the simple average (mean) salary in an active
market where large employers are hiring more employees in those jobs than
smaller employers.
Calculating Salary Deviations
Deviations indicate the adjustment that would be necessary for the
Commonwealth’s salary to be equal to the competitors’ average salary. An
average deviation can be calculated for any salary data element that is collected
in a survey, including the range minimum, range midpoint, range maximum and
average salary.
The deviation is computed by subtracting the competitors’ average salary
from the Commonwealth’s corresponding salary (minimum, midpoint,
maximum, or average salary) and dividing that difference by the
Commonwealth’s salary. Multiplying the quotient by 100 gives the percent
deviation. Survey differences are always expressed as a percentage of state
MONETARY AND NON-MONETARY AWARDS
The level of an employee’s contribution to the work unit, agency, and/or the
Commonwealth should be considered when determining the award to be provided to
the employee. Recognition awards may be in the form of monetary and non-
monetary items. Monetary awards are those paid by any negotiable instrument such
as cash, check, money order, and direct deposit. This type of award also includes any
item that can be readily converted to cash such as savings bonds or refundable gift
certificates. Non-monetary awards include items such as non-refundable gift
certificates, meals, trips, plaques, clothing, or other similar items.
TYPES OF EMPLOYEE RECOGNITION PROGRAMS
The three types of employee recognition programs support and enhance the
Commonwealth’s Compensation Management System. Each of these programs are
independent of one another.
1
• Awards for Length of Service
The Commonwealth’s Award for Length of Service program provides
employees non-monetary recognition for years of service with the Commonwealth.
Awards are based on length of service in five-year increments.
• Employee Suggestion Program
Employee Suggestion Programs give agencies a mechanism for recognizing
employees for adopted ideas that improve their agencies’ and the Commonwealth’s
operations. Awards may be monetary, non-monetary, and leave. A percentage of the
savings generated for the agency and/or the Commonwealth is used to determine the
amount of the monetary or leave award.
• Employee Recognition Program
Employee Recognition Programs are designed to encourage employees to
make a performance difference either individually or through teams. These awards
recognize achievements or accomplishments that contribute to the overall objectives
of the agency and state government. The criteria for such awards are different from
and cannot overlap with the criteria of In-Band Adjustments or In-Band Bonuses
described in Chapter 8 Pay Practices.
Agencies must develop an Employee Recognition Program that provides
monetary and non-monetary recognition awards for employees. The total of
monetary and non-monetary awards (excluding recognition leave) shall not exceed
one thousand dollars ($1,000.00) per employee per fiscal year. In addition,
recognition leave of up to five workdays may be awarded to an employee in a leave
year. Recognition leave lapses within twelve months from the date it is awarded.
Agencies may extend the twelve-month retention period for recognition leave if the
agency has been unable to allow the employee to use the leave or may pay out the
leave in accordance with the situations specified in the policy.
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