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Strong Values + Small
Business = Big Rewards
The Auburn Manufacturing
Story
Johnna Major, SPHR
President, Cornerstone HR
Kathie Leonard
CEO, Auburn Manufacturing
Inc.
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Compensation System Changes
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Employee Satisfaction Survey
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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
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Compensation Philosophy
Benchmarking
Ranges established for each job
Lump sum payout approach
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New Compensation System
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Pay increases are based on two things:
1.
Overall performance review score that equally weights values
and job performance
2.
Placement in the salary range
Calibration process
1.
Consistency of process
2.
Rewarding top performers
3.
Budget
Minimum
Median
Maximum
Job Range $$
Needs Improvement/
Growing
Meeting
Expectations
Exceeding
Expectations
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Recognition Program
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Recognition program tied to Values
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Co-worker nominated
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Recognition committee review
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Recognition at plant meetings
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Recruiting
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Develop Values-Based Interview
Questions
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Ask all candidates: What Values best
describe you?
Values-Based Interview
Questions
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Progress Report
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2014 Satisfaction Survey Results – Change Takes Time
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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
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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
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Progress Report
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Turnover
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Slight increase
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Replacing with “A Players”
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Alignment and agreement on values
among managers
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Move faster and people are empowered to
do their jobs based on our values
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More confidence taking risks based on
values as the framework for decisions
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Lessons Learned
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Impact on hiring and firing
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Initial resistance when people realize how
high the bar was being raised
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Skepticism about values-based interviewing
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Change takes time – be prepared for the
unexpected, but stay the course
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Don’t settle – you need to have the right team
of “A Players” to grow and also weather the
storm
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“I should have done it sooner”
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What’s Next for AMI
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Enhanced recruitment process
for all positions
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Update AMI website with
Values based information
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Orientation program
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Expanded recognition
program
Managers will read Zappos
book
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Breathing life into the Values
(simplify, catchy phrase for
each value)
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Training based on
performance review results
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