U8D1-24 - Contrast equity theory with expectancy theory and apply these concepts to your own organization. See Details Below.

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C O L U M N

B y L a u r a S . M o s k w a

Laura S. Moskwa, CPC, QPA, is the Principal of Laura S. Moskwa Consulting, which focuses on business development and best practices with and for TPAs. Laura is also the Managing Principal of TPA Resources, LLC, which hosts TPAresources.com, a Web site designed specifically for TPAs covering business-related topics with focus on leadership development, practice manage- ment, and business development.

With 30 years in the pension industry Laura has accumulated a broad range of experience. She was a TPA for 18 years, has worked with and for a broker dealer and RIAs and spent 7 years at Transamerica Retirement Services as Vice President and Director of TPA Services where she developed and grew the TPA Channel program. Laura also provides industry expertise specifically regard- ing TPAs, recordkeeping and administration on the Center for Fiduciary Excellence (CEFEX) Registration Committee and is an analyst performing assessments for the ASPPA Service Provider Certification.

In this column, I am going to focus on two important practices that are appropriate for all companies regardless of size: • Comprehensive job descriptions for each position

in the company, including yours; and • Consistent and timely job performance reviews.

Job descriptions are used to explain the role, respon- sibilities, expectations, and qualification requirements for job postings as well as for existing employee edi- fication. These documents should be developed by the owner(s) and managers, not the employees them- selves. The obvious application of a job description is to use it when seeking new employees to provide the

majority of the copy for the posting and to provide candidates with a clear understanding of the job being filled. However, good job descriptions are equally important for your existing employees, as they provide clarity regarding not only their own position but also the fit of each position in the firm as part of the larger team. While some business owners feel that job titles are not necessary, they are essential to provide employ- ees with guidance for a discernable career path within the firm. Use a consistent job description format for all positions to ease the difficulties of creation and updates, as well as to provide straightforward informa- tion for employees. I work with a TPA who uses an awesome job description format and the TPA agreed to share. Below are suggestions for sections you can include in your firm’s job description template:

• Title • Department • Reports to • Position type (i.e., exempt, non-exempt, full time,

part time, contract, temporary, intern) • Location (If you have multiple locations list all

locations at which individuals in this position have the ability to work. Include remote if you enable individuals in this position to work in such a capacity.)

• General responsibility • Key responsibilities:

— List details of day-to-day tasks — List overarching corporate requirements (i.e.,

support corporate culture, embody mission, provide solutions for improvements, pursuit of professional education)

Best Practices

Do Your Firm’s Job Descriptions and Performance Reviews Meet the Standard?

The greatest asset of any company is its people. Without the right people in the right positions, working

together as a team, the quality of service would suffer and, therefore, so would the value of the company. There

are many managerial and leadership responsibilities required to achieve a well-run organization, one in which

employees feel appreciated and integral to the services delivered.

54 JOURNAL OF PENSION BENEFITS

• Qualifications: — Required schooling — Required professional designations — Industry-based system requirements — Technology knowledge requirements — Years of experience required

• Skills — Items such as communications, language,

mathematical, and reasoning • Characteristics

— General traits that you have identified as important for this particular position (i.e., creative thinker, detail oriented, team player, willingness to follow procedures, adaptability to change)

• Physical demands and work environment — Describe the job requirements that may include

lifting, visual, auditory, extensive periods of sit- ting, driving, reaching, etc.

— Describe the general environment in which the person in this position would be working (i.e., reasonable accommodations, ADA compliant, exposure to moving mechanical parts, noise level). Add any information that would be applicable for a remote employee.

• Career path outline

The career path grid is a great tool for job candi- dates and, perhaps even more importantly, existing employees, as it provides a clear road map to follow and sets clear expectations. Try to make sure that the entire document is not long; one page for the position

detail and one for the career path grid is optimal. This can be accomplished by using clear and concise state- ments presented in a bullet point fashion, making the document very easy to read.

Good job descriptions align with performance reviews to clearly state responsibilities and requirements and will assist with goal development, based upon shortcom- ings and/or career path aspirations or expectations.

Performance reviews are typically not the most favorite responsibility and process for either manage- ment or the employees. They are, however, extremely important to ensure that the company stays on track. As much as employees may dread the process, they do want feedback on how they are doing and where they need improvement. The review process should be outlined in the employee manual so that all parties understand what to expect and when. Never skip or postpone the scheduled review. Use a simple docu- ment to cover all topics for discussion, such as:

• Facts—current: — Name, position, manager, department,

designations — Review time period and date — Description of position held, incremental

advancement, job duties, training requirements • Feedback

• Achievements and barriers • Set up as a grid:

— Rows could include quality of work, meet- ing goals, decision making, job skills, work relationships, communications, attendance/

Level

Exempt/ Non- Exempt Title

Expected Years of Prior Relevant

Experience Requirements Expectations Salary Range

1 Title 1 2+ Education Professional Association Exams

Learning systems, work- ing with and learning from Level 2 or 3

2 Title 2 3+ Level 1 plus Professional Association Designation

Maintains their own case load, expands technical knowledge, proficiency expectations

3 Senior Title 6+ Level 2 plus Professional Association Designations

Seasoned, manages most complicated plans, mastery of systems, high level inter- action with clients

4 Management or Consultant Title

15+ Level 3 Expert in multiple lines of business and plan design, management acumen

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punctuality, client satisfaction, work habits, flexibility, knowledge of job, etc.

— Columns to select level of accomplishment— excellent, very good, good, fair, poor

• Overall review — Key responsibilities and performance measures

• Career development — Learning objective(s) and plan of action — Timeline and expected result

Document the outcome, have the manager and employee sign the completed form and keep the executed document in the employee file. If there are issues to be addressed, incorporate a follow-up schedule to review and document progress. This is extremely important when an employee is put on probation as it provides you with documentation of

the discussions, progress, and a process for reference if the employee is ultimately terminated. To avoid any questions regarding such discussions, include another manager and/or owner in review meetings with an employee with whom you are addressing an issue.

Comprehensive job descriptions will help to sys- tematize performance reviews as they provide a clear guideline for expectations and requirements, along with the employee manual for areas such as data security, dress code, and attendance. These best practices help develop the foundation of a team of people who understand how they and others fit into the bigger picture, drive organization goals, develop coherence, and help to define a well-run firm. They also demonstrate career path opportunities that lead to professional growth that benefits the staff and the firm. ■

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