1. Salary Management System Linked to Competencies to Assure Consistency with Career Pathing and Performance Standards HR Innovations Catalogue Executive Summary A No Frills Distillation of Vendor’s Marketing Collateral Thomas A Ference President & CEO Human Resources Mining & Distribution Co Locating, Validating and Accelerating HR Innovation Office: 219-662-0201 Cell: 630-240-2583 Fax: 219-661-0236 e-mail: tference@hrmdco.comtference@hrmdco.com Website: www.hrmdco.comwww.hrmdco.com

2. Salary Management System Linked to Competencies -Often, the compensation function within HR will develop the salary system and OD will separately develop the performance management and career pathing systems without linkage to required competencies. -Employees and managers may therefore question the relevance of performance reviews to required job competencies and neither can articulate the specific competency requirements needed for career advancement -This simple-to-understand and deploy 4 factor system provides an integrated approach to first defining the organization’s job levels and then linking each level to its required competencies -Required competencies are used for determining the desired and requisite performance at each job level and when performance meets the next level of required competency career advancement is possible -This system operates at the intersection between Compensation and OD and has proven to be effective in over 80 countries -The system accommodates consulting external customers about employee performance

3. Focuses Four Competencies at Various Competency Levels Competency AreaCompetency Ranges Nature of WorkGrowing substantive skills from basic conceptual mastery of the work to the level of expert innovation Enabling Environment Working within teams ranging from simply working well within a team environment that encourages learning to actually promoting cohesion among team members PartnershipDeveloping communication and advocacy skills from basic clarity of presentation through organizational networking that highlights the relevance of the organization to the client ResultsDeveloping capacities within in ranges that promote delivery of services and products that align with needs/expectations of clients

4. First- Defines Primary Characteristics of Work at Various Levels

5. Then - Defines Requisite Competencies & Behaviors for Each Level

6. Finally- Links Performance Measures to Requisite Competencies & Behavior Levels

7. Putting It All Together

8. Next Steps This product/service is contained in the HR Specialty Products & Services Catalogue™ Operational level details about this particular service provider can be obtained in conference with the vendor The HR Mining &Distribution Co. is an independent and contracted representative of the vendor Upon your request, we will arrange for an introduction that can range from a simple, quick conference call to a services overview / system demo Tom Ference 219-662-0201 (Chicagoland area) or tference@hrmdco.com Thank you for your potential interest in this fresh thinking