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Job Titles - Compensation - And Responsibilities - They Must Be In Sync
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In addition you should provide additional compensation based on performance. On this point I generally get a lot of questions and a few complaints. “Its impossible to provide performance based compensation on such-and-such a job.”
I don’t agree. Think harder. A good friend of mine Clark Johnson, when he was Controller and VP of Finance at Johnson & Johnson, saved the corporation millions of dollars by doing away with monthly accounting period closings and switching to quarterly closings only. I bet he had something in his compensation package that allowed the company to show how grateful it was.
Now for Job titles.
I believe the title reflects the time period over which the box has to focus. If the focus is a machine’s output per hour, that title is probably “Machine operator.” If the focus is all the machines for a shift or a day, it’s probably “Shift or Day supervisor.” If it’s for a week or a month, it’s probably more accurately an “Assistant Manager.” If the job is focused on meeting quarterly budget and output requirements, the title is probably “Manager.”
These are pretty clear. Higher-level jobs require more thought - start with the top job - “Decision Maker” and work down. The proper focus at this level could be split. Somebody has to have the responsibility for looking out three to five years. This task belongs to the CEO. If the company is small, it may be a part of the next lowest level box. That box, typically labeled, “President”, should be focused on one to three years out. If the person in that box is worrying about quarterly sales, either she doesn’t know what to do, or the company is spreading its people too thin.
Vice Presidents should be focused on six months to a year out and
Department Mangers should be looking three to six months out.
All of the above are generalizations, rules of thumb - but the thought process is what counts.
When you interview and the person says they were a vice-president and they describe their job as having to meet the weekly payroll, don’t hire them or pay them according to what you put in your VP box. By the same token, don’t perpetuate the problem by giving a clerk the title of VP because you don’t want to pay him what he and the box deserve.
Return to Page 1
Art Consoli's unique background and skills allow him to speak and write about how someone with limited experience can do a self-evaluation which will let him decide which business opportunity is best, how to evaluate opportunities and gain control over the one which offers the greatest potential and then manage that business to success. Readers of his book call and write to tell him how much his book has helped their lives and improved their business. The author can be reached at www.businessstrategyartconsoli.com.
Page 2
In addition you should provide additional compensation based on performance. On this point I generally get a lot of questions and a few complaints. “Its impossible to provide performance based compensation on such-and-such a job.”
I don’t agree. Think harder. A good friend of mine Clark Johnson, when he was Controller and VP of Finance at Johnson & Johnson, saved the corporation millions of dollars by doing away with monthly accounting period closings and switching to quarterly closings only. I bet he had something in his compensation package that allowed the company to show how grateful it was.
Now for Job titles.
I believe the title reflects the time period over which the box has to focus. If the focus is a machine’s output per hour, that title is probably “Machine operator.” If the focus is all the machines for a shift or a day, it’s probably “Shift or Day supervisor.” If it’s for a week or a month, it’s probably more accurately an “Assistant Manager.” If the job is focused on meeting quarterly budget and output requirements, the title is probably “Manager.”
These are pretty clear. Higher-level jobs require more thought - start with the top job - “Decision Maker” and work down. The proper focus at this level could be split. Somebody has to have the responsibility for looking out three to five years. This task belongs to the CEO. If the company is small, it may be a part of the next lowest level box. That box, typically labeled, “President”, should be focused on one to three years out. If the person in that box is worrying about quarterly sales, either she doesn’t know what to do, or the company is spreading its people too thin.
Vice Presidents should be focused on six months to a year out and
Department Mangers should be looking three to six months out.
All of the above are generalizations, rules of thumb - but the thought process is what counts.
When you interview and the person says they were a vice-president and they describe their job as having to meet the weekly payroll, don’t hire them or pay them according to what you put in your VP box. By the same token, don’t perpetuate the problem by giving a clerk the title of VP because you don’t want to pay him what he and the box deserve.
Return to Page 1
Art Consoli's unique background and skills allow him to speak and write about how someone with limited experience can do a self-evaluation which will let him decide which business opportunity is best, how to evaluate opportunities and gain control over the one which offers the greatest potential and then manage that business to success. Readers of his book call and write to tell him how much his book has helped their lives and improved their business. The author can be reached at www.businessstrategyartconsoli.com.
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