Terminology
Pay provided by an employer to workers in exchange for services such as time, effort and talent
What is compensation
An annual increase tied to company and/or individual performance
What is a merit increase
Promotion Guidelines are housed here
What is the Compensation Resources Team Site
Document that describes a job including a job summary, job duties, job qualifications
What is a job description
Team dedicated to reviewing, implementing, and setting compensation strategies and practices while partnering with the Talent and broader business teams
What is the Compensation Team
Employees who are paid on a salaried basis and not eligible for overtime pay
What is exempt
Bonuses, incentives, or pay at risk
Variable pay
Occurs when an employee takes a new position that is in the same pay grade as their current role
What is a transfer or lateral move
Cloud based compensation management system
What is Payfactors
Acronym that Milwaukee Tool uses to adjust salaries based on geographic region
What is COL (Cost of Labor)
A step within a compensation structure that defines the amount of pay a specified job will receive
What is a pay grade
Chart that depicts what recommended percent increase to give to an employee based on performance
What is a merit matrix
Chart that depicts reporting relationships and job level within the organization
What is an org chart
Establishes a relationship between jobs by grouping similar jobs as established in the job evaluation process. Helps to indicate how various jobs can be categorized within the organization
What is a job hierarchy
Organizes the grade ranges to provide a hierarchical approach to managing compensation
What is a compensation structure
Nondiscretionary compensation that does not vary according to performance or results achieved. Includes hourly wages and salaries
What is Fixed or Base Pay
The hire date and after an employee is ineligible for a merit increase (biweekly population only)
What is October 1st.
The typical percent increase for a salaried and/or biweekly promotion
What is 8-10%
A systematic, formal study of duties and responsibilities that comprises job content and provides key information about the nature and level of work performed.
What is job analysis
Data that is readily available online through websites that allow individuals to enter in their job information and receive compensation data in return
What is self reported data
The combination of benefits, compensation, well-being, development and recognition that employees receive from their organizations
What is Total Rewards
A pool of money to reward our high performing, non management or sales incentive eligible employees in addition to merit
What is a performance bonus
A type of promotion that occurs when an employee is naturally moving up a step in their career family
What is an in-line promotion
The collection and interpretation of external market data as well as identification of the prevailing rate for a job
What is market pricing
Pay Competitively to attract and retain employees and Pay for Performance to recognize, differentiate, and rewards individuals
What is Milwaukee Tool's Compensation Philosophy