Friday, July 17, 2020

Developing A Competency Framework

Linking Company Objectives And Personal Performance

You're probably familiar with the phrase "what gets measured gets done." Defining and measuring effectiveness – especially the performance of workers – is a critical part of your job as a manager.

The question is: how do you define the skills, behaviors, and attitudes that workers need to perform their roles effectively? How do you know they're qualified for the job? In other words, how do you know what to measure?

Some people think formal education is a reliable measure. Others believe more in on-the-job training, and years of experience. Others might argue that personal characteristics hold the key to effective work behavior.

All of these are important, but none seems sufficient to describe an ideal set of behaviors and traits needed for any particular role. Nor do they guarantee that individuals will perform to the standards and levels required by the organization.

A more complete way of approaching this is to link individual performance to the goals of the business. To do this, many companies use "competencies." These are the integrated knowledge, skills, judgment, and attributes that people need to perform a job effectively. By having a defined set of competencies for each role in your business, it shows workers the kind of behaviors the organization values, and which it requires to help achieve its objectives. Not only can your team members work more effectively and achieve their potential, but there are many business benefits to be had from linking personal performance with corporate goals and values.

Defining which competencies are necessary for success in your organization can help you do the following:

  • Ensure that your people demonstrate sufficient expertise.
  • Recruit and select new staff more effectively.
  • Evaluate performance more effectively.
  • Identify skill and competency gaps more efficiently.
  • Provide more customized training and professional development.
  • Plan sufficiently for succession.
  • Make change management processes work more efficiently.

How can you define the set of practices needed for effective performance? You can do this by adding a competency framework to your talent management program. By collecting and combining competency information, you can create a standardized approach to performance that's clear and accessible to everyone in the company. The framework outlines specifically what people need to do to be effective in their roles, and it clearly establishes how their roles relate to organizational goals and success.

This article outlines the steps you need to take to develop a competency framework in your organization.

Design Principles Of A Competency Framework

A competency framework defines the knowledge, skills, and attributes needed for people within an organization. Each individual role will have its own set of competencies needed to perform the job effectively. To develop this framework, you need to have an in-depth understanding of the roles within your business. To do this, you can take a few different approaches:

  • Use a pre-set list of common, standard competencies, and then customize it to the specific needs of your organization.
  • Use outside consultants to develop the framework for you.
  • Create a general organizational framework, and use it as the basis for other frameworks as needed.

Developing a competency framework can take considerable effort. To make sure the framework is actually used as needed, it's important to make it relevant to the people who'll be using it – and so they can take ownership of it.

The following three principles are critical when designing a competency framework:

  1. Involve The People Doing The Work – These frameworks should not be developed solely by HR people, who don't always know what each job actually involves. Nor should they be left to managers, who don't always understand exactly what each member of their staff does every day. To understand a role fully, you have to go to the source – the person doing the job – as well as getting a variety of other inputs into what makes someone successful in that job.
  2. Communicate – People tend to get nervous about performance issues. Let them know why you're developing the framework, how it will be created, and how you'll use it. The more you communicate in advance, the easier your implementation will be.
  3. Use Relevant Competencies – Ensure that the competencies you include apply to all roles covered by the framework. If you include irrelevant competencies, people will probably have a hard time relating to the framework in general. For example, if you created a framework to cover the whole organization, then financial management would not be included unless every worker had to demonstrate that skill. However, a framework covering management roles would almost certainly involve the financial management competency.

Developing The Framework

There are four main steps in the competency framework development process. Each steps has key actions that will encourage people to accept and use the final product.

Step One: Prepare

  • Define The Purpose – Before you start analyzing jobs, and figuring out what each role needs for success, make sure you look at the purpose for creating the framework. How you plan to use it will impact whom you involve in preparing it, and how you determine its scope. For example, a framework for filling a job vacancy will be very specific, whereas a framework for evaluating compensation will need to cover a wide range of roles.
  • Create A Competency Framework Team – Include people from all areas of your business that will use the framework. Where possible, aim to represent the diversity of your organization. It's also important to think about long-term needs, so that you can keep the framework updated and relevant.

Step Two: Collect Information

This is the main part of the framework. Generally, the better the data you collect, the more accurate your framework will be. For this reason, it's a good idea to consider which techniques you'll use to collect information about the roles, and the work involved in each one. You may want to use the following:

  • Observe – Watch people while they're performing their roles. This is especially useful for jobs that involve hands-on labor that you can physically observe.
  • Interview People – Talk to every person individually, choose a sample of people to interview, or conduct a group interview. You may also want to interview the supervisor of the job you're assessing. This helps you learn what a wide variety of people believe is needed for the role's success.
  • Create A Questionnaire – A survey is an efficient way to gather data. Spend time making sure you ask the right questions, and consider the issues of reliability and validity. If you prefer, there are standardized job analysis questionnaires you can buy, rather than attempting to create your own.
  • Analyze The Work – Which behaviors are used to perform the jobs covered by the framework? You may want to consider the following:
    • Business plans, strategies, and objectives.
    • Organizational principles.
    • Job descriptions.
    • Regulatory or other compliance issues.
    • Predictions for the future of the organization or industry.
    • Customer and supplier requirements.

Job analysis that includes a variety of techniques and considerations will give you the most comprehensive and accurate results. If you create a framework for the entire organization, make sure you use a sample of roles from across the company. This will help you capture the widest range of competencies that are still relevant to the whole business.

  • As you gather information about each role, record what you learn in separate behavioral statements. For example, if you learn that Paul from accounting is involved in bookkeeping, you might break that down into these behavioral statements: handles petty cash, maintains floats, pays vendors according to policy, and analyzes cash books each month. You might find that other roles also have similar tasks – and therefore bookkeeping will be a competency within that framework.
  • When you move on to Step Three, you'll be organizing the information into larger competencies, so it helps if you can analyze and group your raw data effectively.  

Step Three: Build The Framework

This stage involves grouping all of the behaviors and skill sets into competencies. Follow these steps to help you with this task:

  • Group The Statements – Ask your team members to read through the behavior statements, and group them into piles. The goal is to have three or four piles at first – for instance, manual skills, decision-making and judgment skills, and interpersonal skills.
  • Create Subgroups – Break down each of the larger piles into subcategories of related behaviors. Typically, there will be three or four subgroupings for each larger category. This provides the basic structure of the competency framework.
  • Refine The Subgroups – For each of the larger categories, define the subgroups even further. Ask yourself why and how the behaviors relate, or don't relate, to one another, and revise your groupings as necessary.
  • Identify And Name The Competencies – Ask your team to identify a specific competency to represent each of the smaller subgroups of behaviors. Then they can also name the larger category.
  • Here's an example of groupings and subgroupings for general management competencies:
    • Supervising and leading teams.
      • Provide ongoing direction and support to staff.
      • Take initiative to provide direction.
      • Communicate direction to staff.
      • Monitor performance of staff.
      • Motivate staff.
      • Develop succession plan.
      • Ensure that company standards are met.
    • Recruiting and staffing.
      • Prepare job descriptions and role specifications.
      • Participate in selection interviews.
      • Identify individuals' training needs.
      • Implement disciplinary and grievance procedures.
      • Ensure that legal obligations are met.
      • Develop staff contracts.
      • Develop salary scales and compensation packages.
      • Develop personnel management procedures.
      • Make sure staff resources meet organizational needs.
    • Training and development.
      • Deliver training to junior staff.
      • Deliver training to senior staff.
      • Identify training needs.
      • Support personal development.
      • Develop training materials and methodology.
    • Managing projects/programs
      • Prepare detailed operational plans.
      • Manage financial and human resources.
      • Monitor overall performance against objectives.
      • Write reports, project proposals, and amendments.
      • Understand external funding environment.
      • Develop project/program strategy.

You may need to add levels for each competency. This is particularly useful when using the framework for compensation or performance reviews. To do so, take each competency, and divide the related behaviors into measurement scales according to complexity, responsibility, scope, or other relevant criteria. These levels may already exist if you have job grading in place.  

  • Validate And Revise The Competencies As Necessary – For each item, ask these questions:
    • Is this behavior demonstrated by people who perform the work most effectively? In other words, are people who don't demonstrate this behavior ineffective in the role?
    • Is this behavior relevant and necessary for effective work performance?

These questions are often asked in the form of a survey. It's important to look for consensus among the people doing the job, as well as areas where there's little agreement. Also, look for possible issues with language, or the way the competencies are described, and refine those as well.

Step Four: Implement

As you roll out the finalized competency framework, remember the principle of communication that we mentioned earlier. To help get buy-in from members of staff at all levels of the organization, it's important to explain to them why the framework was developed, and how you'd like it to be used. Discuss how it will be updated, and which procedures you've put in place to accommodate changes.

Here are some tips for implementing the framework:

  • Link to business objectives – Make connections between individual competencies and organizational goals and values as much as possible.
  • Reward the competencies – Check that your policies and practices support and reward the competencies identified.
  • Provide coaching and training – Make sure there's adequate coaching and training available. People need to know that their efforts will be supported.
  • Keep it simple – Make the framework as simple as possible. You want the document to be used, not filed away and forgotten.
  • Communicate – Most importantly, treat the implementation as you would any other change initiative. The more open and honest you are throughout the process, the better the end result – and the better the chances of the project achieving your objectives.

Key Points

Creating a competency framework is an effective method to assess, maintain, and monitor the knowledge, skills, and attributes of people in your organization. The framework allows you to measure current competency levels to make sure your staff members have the expertise needed to add value to the business. It also helps managers make informed decisions about talent recruitment, retention, and succession strategies. And, by identifying the specific behaviors and skills needed for each role, it enables you to budget and plan for the training and development your company really needs.

The process of creating a competency framework is long and complex. To ensure a successful outcome, involve people actually doing carrying out the roles to evaluate real jobs, and describe real behaviors. The increased level of understanding and linkage between individual roles and organizational performance makes the effort well worth it.

Thanks to MindTools / MindTools.com
https://www.mindtools.com/pages/article/newISS_91.htm

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Criminal-Background Checks, Social-Media Screening On The Rise

Employers Need To Balance Speed With Risk When It Comes To Vetting Candidates' Backgrounds.

HR leaders and employers appear to have beefed up their background screening technology strategies in two key areas, focusing more on social media usage and criminal checks, according to a recent report.

A survey by First Advantage, which provides background check and drug screening solutions, found that in the past year, 46 percent more customers ordered National Sex Offender Registry checks, with a 38 percent boost in employers surveyed specifically ordering the National Criminal File Plus option.

When it comes to technology usage, of those employers that screen social media activity of their employees or prospective employees – looking for concerning behavior such as drugs, violence and bigotry – 60 percent screen all employees, 28 percent only screen if job requires it and seven percent are not screening at all, but are considering adding it.

According to CEO Scott Staples, First Advantages’s 2019 Top Screening Trends & Insights State of the Industry report surveyed enterprise customers and cross-referenced those responses with aggregated data from more than 66 million annual global searches. By doing that, the company was able to identify the key trends driving the employment background screening industry. Part one of the report is being provided free on a temporary basis (it’s a five-part series), according to First Advantage.

Staples said the initial findings revealed lessons learned, including the need to balance risk and speed (with healthcare indicating the most concern about risk mitigation and retail requiring speed), and seasonal hiring spikes including increases in the retail, business services and transportation sectors each fall.

Other key findings include:

  • Centralized global background screening is becoming more prevalent to ensure system-wide compliance and consistency;
  • Companies are increasing orders for former employment (10 percent), education (4 percent), credential verifications (13 percent) and references (28 percent); and
  • Almost 12 percent more clients include drug screening for their prospective and current employees.

Staples says First Advantage’s analysis also uncovered global developments, which are especially relevant to multinational organizations seeking to ensure a consistent candidate experience. The upward trend includes: 12 percent more ordering former employment internationally; 16 percent more ordering criminal-record searches; 15 percent more ordering education verifications internationally and 8 percent more ordering government ID internationally.

Finally, employers cited other criminal monitoring trends, mainly those aimed at diminishing the impact of “state jumping.” For example, Staples explains, since the healthcare industry participates in federal programs including Medicare and Medicaid, the need to check for criminal convictions across state lines necessitates a deeper screening process. Yet, respondents across all industries indicated 21 percent only check a candidate’s current address, 10 percent check all addresses for the past five years and 26 percent check all addresses for the past seven years.

“Companies compete aggressively for qualified talent, making screening turnaround time a crucial factor in advancing an offer,” Staples says, adding that at the same time, balancing risk to support workplace safety, reputation management and alignment with legislative and other requirements necessitates comprehensive screening practices.

About the Author :- Tom Starner is a freelance writer based in Philadelphia who has been covering the human resource space and all of its component processes for over two decades.

Thanks to Tom Starner / Human Resource Executive / HRExecutive.com
https://hrexecutive.com/criminal-background-checks-social-media-screening-on-the-rise/

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Monday, July 13, 2020

Competencies For A Training & Development Manager

Competencies are basic skills employees need to perform their job duties and tasks. All are broad areas that can be improved through training, job experience and development. Training and development managers must also exhibit certain job competencies to perform their job functions, including basic knowledge of human resources, understanding of adult learning principles, time management and leadership skills.

Job Duties

Training and development managers work closely with human resources staff, management and executive leadership to implement adult learning and training at all levels within the organization. Their duties range from advising C-level executives on employee development trends to supervising training specialists and providing them with guidance on how to build facilitation skills. In addition, training and development managers conduct needs assessments to determine employee strengths as well as areas where training could be most beneficial.

Human Resources Knowledge

Since they mostly operate out of human resource departments, training and development managers must have a basic understanding of human resources strategy, principles and functions. Training managers should know how training and development supports the workplace, how training fits into the performance management system and the impact training has on performance measurements.

Industry Knowledge

Industry knowledge consists of understanding adult learning theory and techniques, employee development trends, technology-based training methods and best practices for encouraging employee participation in the development process. Training and development managers generally have been training specialists at some point during their careers and have been promoted as a result of their effectiveness, performance and industry knowledge.

Leadership Skills

Training and development managers supervise specialists either new to the field or who focus on just one or two areas of employee training. Consequently, leadership and time management skills are competencies managers must have to oversee their own staffs. In addition, the leadership skills they exhibit in doing so are also a requirement in implementing in-house training for other supervisors and managers. The same techniques that training and development managers pass on to workplace supervisors and managers are the same skills they use to manage and provide guidance to their own employees.

Functional Expertise

Verbal communication skills are at the foundation of functional expertise for training and development managers. The ability to facilitate focus group discussions, conduct classroom learning sessions, seminars and workshops are skills any training and development manager should have. Public speaking capabilities — sometimes referred to as platform skills — are an essential component of a training and development manager’s skills. They also must be able to develop these very skills in employees reporting to them.

About The Author

Ruth Mayhew has been writing since the mid-1980s, and she has been an HR subject matter expert since 1995. Her work appears in "The Multi-Generational Workforce in the Health Care Industry," and she has been cited in numerous publications, including journals and textbooks that focus on human resources management practices. She holds a Master of Arts in sociology from the University of Missouri-Kansas City. Ruth resides in the nation's capital, Washington, D.C.

Thanks to Ruth Mayhew / Chron / SmallBusiness Chron
https://smallbusiness.chron.com/competencies-training-development-manager-11149.html

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Sunday, July 12, 2020

Are Soft Skills More Important Than The Right Qualifications?

Americans find soft skills are more desirable than having the right experience or qualifications for a job.

It all depends upon whom you ask.

According to a new survey of more than 2,000 adults conducted online by the Harris Poll on behalf of Yoh, having soft skills—such as personal, communications and time-management skills; enthusiasm; dependability; and reliability—without the required experience seems to be more desirable than having the right experience or qualifications for a job but lacking soft skills.

The survey’s results suggest that, if hiring for a job and the perfect candidate didn’t exist, 75 percent of Americans would most likely hire a job candidate who has soft skills and not the right experience or qualifications. If no perfect candidate existed, rather than choose someone with direct experience or qualifications and poor personal skills, Americans would most likely choose someone who is enthusiastic and willing to learn (36 percent), someone who has excellent personal, communication and time-management skills (27 percent) or is very dependable/reliable (11 percent).

Apparently only 13 percent of those surveyed Americans say they would most likely choose someone who has the right experience and qualifications but is lacking personal skills. Just over 12 percent say they most likely wouldn’t hire anyone and would leave the position unfilled indefinitely.

Additional findings include:

  • Women More Open To Soft Skills Than Men. Women are more likely than men to say, in absence of a perfect candidate, they would most likely choose someone who isn’t experienced/qualified but has soft skills (77 percent versus 72 percent)
  • Younger Adults Choose Hard Skills Over Soft Skills. Younger adults (ages 18 to 34) seem less focused on the value of personal skills, and are more than twice as likely as their older counterparts to say they would most likely hire someone who has the right experience but is lacking personal skills (e.g., poor communication, bad time management, not reliable/dependable, not enthusiastic) (22 percent for 18- to 34-year-olds versus 9 percent ages 35 and above)
  • College Grads And Higher-Earning Households More Likely To Opt For Soft Skills. Results found college graduates are more likely than those with a high school degree or less to say they would most likely choose someone who isn’t experienced/qualified but has soft skills (78 percent versus 71 percent). Those with annual household incomes of $100,000 or more are more likely than those with annual household incomes of less than $50,000 to say they’d choose a candidate with soft skills and not the right experience (78 percent versus 71 percent).

The survey’s results say two very important things about today’s ultra-competitive job market, said Emmett McGrath, president of Yoh. “One is that having the right experience and technical skills for a job is not enough—job candidates also need to fit in culturally and have non-technical skills in order to succeed.

“And two, hiring managers who recognize the value of soft skills and are more open in the candidates they consider will almost always be more successful in finding quality candidates than those that prioritize only hard skills. The talent landscape has gotten increasingly complex—and organizations that take a creative, strategic approach to their hiring will rise to the top.”

Thanks to Michael J. O’Brien / Human Resource Executive / HRExecutive.com

https://hrexecutive.com/are-soft-skills-more-important-than-the-right-qualifications/

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8 Types Of Bonuses Top Companies Offer

When it comes to compensation, there’s more to consider than just base salary. In fact, that’s why it is called base pay; it is the initial salary paid to an employee. However, when it comes to total compensation, a job seeker or employee must consider base pay plus benefits, raises, stock options and bonuses. For many occupations, there are additional forms of compensation like overtime, on-call pay, pay for special projects and investment options.

Collectively, bonus pay is additional compensation beyond your base salary or hourly wage.

You may be asking yourself, “What are all of these other forms of compensation? And how do I get them?”

We’re here to help. Whether you’re happily employed but want to learn more about your current compensation, or if you’re talking to a recruiter about a role and are overwhelmed by all of the talks about numbers, here is a handy cheat sheet on the most common types of bonuses that top companies offer.

1. Annual Bonus

The most common type of bonus is given annually based on an employee’s annual base salary. Each employee is assigned a target bonus, in most companies, that reflects a possible bonus at the end of the year. If the company or manager determines that an employee, a.k.a. you, have achieved certain individual goals, the annual bonus will be given. The key here is that the company or department needs to also achieve certain business performance results in order for the annual bonus to be paid out.

As with most bonuses, the amount of the annual bonus or the percentage can vary between departments and positions, and is determined by the company’s leadership and HR teams.

2. Signing Bonus

A signing bonus — or what some companies like Amazon call a Sign-On Bonus— is a one-time payment to a job applicant who is highly desired by a company recruiter. Think of this as an attractive carrot that a recruiter or company may offer you in order to get you to join the company.

You may be offered a signing bonus if:

  • You’ve negotiated for a salary of $100,000, but the recruiter can only offer $90,000. You may be offered a signing bonus of $10,000 to make up for the gap.
  • You have competing offers from another company.
  • The company is poaching you from another top company and needs to cash out the stock options that you’re leaving behind.

It’s important to note that usually signing bonuses come with a requirement that you, the employee, stay with the company for at least 6 months or a year.

3. Spot Bonus or Discretionary Bonus

If you’ve achieved a major goal or demonstrated exceptional performance, you may qualify for a spot bonus. Alternatively called a discretionary bonus, these can be three- or four-figure bonuses at some companies, and reward performance beyond explication. Usually, managers or executives have discretionary funds with which to reward employees who have made a significant impact on the business.

These spur-of-the-moment gifts recognize outstanding performance and can be a great motivational tool, especially during difficult times. Note, some employers may also grant spot bonuses in the form of gift cards or additional PTO.

4. Retention Bonus

Retention bonuses reward employees for staying with the company for a long period of time. These are also used to retain high-performing employees especially when there is a hot job market. As employee poaching has increased in recent years, many companies offer retention bonuses to keep employees from jumping ship to a new job.

Typically a retention bonus is a one-time payment, and many companies prefer these over a salary increase because they may not have the necessary finances in place to commit to a long-term raise.

5. Referral Bonus

According to the U.S. Office of Personnel Management, “A referral bonus is an award given to an employee who helps the agency recruit new talent by referring someone for an advertised, hard-to-fill vacancy (i.e. after the vacancy has been announced for open competition through proper channels). A referral bonus may be paid after that person is hired by the agency and performs successfully in the job.”

Simply put, referral bonuses are for current employees who help recruit a new employee and vary depending on a few factors:

  • Role: Some roles like engineers garner a higher referral bonus for employees
  • Difficulty to Hire: If a company decides that a role is likely to be difficult to fill, they may up the incentive or the bonus.
  • Diversity: Companies like Intel challenge its employees to refer more diverse candidates and rewards employees who refer a woman, underrepresented minority or veteran.

6. Holiday Bonus

As the name suggests, a holiday bonus is given out during the winter holiday time and can be a way that a company tries to thank employees for a successful year’s work. Holiday bonuses can be any size and often increase employee productivity, retention and motivation. In many cases, a company will tie a holiday bonus to individual employee performance and may tell you what you did that led to the reward, whether that be taking on a stretch assignment, beating sales goals or exceeding other key performance indicators (KPIs).

7. Profit-Sharing Bonus

Unlike an annual bonus, a profit-sharing bonus awards employees a percentage of the company’s profits and is based on the company’s actual earnings over a set period of time. Employees only benefit from this type of bonus when a company sees a profit.

The company contributes part of its pre-tax profits into a pool that is distributed among eligible employees. The amount distributed to each employee then depends on salary and title. This bonus can either be shared in the form of stocks or a cash amount.

In 2020, Delta Air Lines decided it would pay its 90,000 workers $1.6 billion in profit-sharing bonuses. Full-time and part-time workers received the checks, while executives are said to be receiving their own performance-based bonuses.

8. Commission

Most popular amongst sales teams, commission plans are based on the amount of money or revenue a salesperson earns in the sales they have made. Commissions complement a base salary and are very clearly defined at the top of the year through a sales commissions structure. This outlines how much the company will pay its salespeople for each sale.

According to HubSpot, there are a few different types of Commission structures:

  1. Base Salary Plus Commission: With this plan, salespeople are provided a base salary with commission. The standard salary to commission ratio is 60:40, where 60% is fixed and 40% is variable.
  2. Absolute Commission Plan: This is when a commission is paid as a result of engaging in specific activities or meeting specific goals. For example, a salesperson might be paid $1,000 for each new customer.
  3. Relative Commission Plan: The relative commission plan is when a target or quota is set. Let’s say a salesperson has a quarterly quota of $90,000 and a quarterly commission of $10,000. If they meet 85% of the quota, they’ll receive 85% of the commission.
  4. Territory Volume Commission Plan: With this commission structure, salespeople work with clients in clearly defined regions. And they’re paid on a territory-wide versus individual sale basis.
  5. Straight-Line Commission Plan: A straight-line commission plan rewards salespeople based on how much or little they sell. For example, if they reach 90% of their quota, they receive 90% of their commission
  6. Tiered Commission Plan: A tiered structure encourages reps to put in extra effort by providing higher commission as they hit substantial sales milestones. Here, reps could be paid increasing commissions as they meet their quota, exceed their quota, and continue to close more deals than they’re expected to.

If all of this talk about money has you wondering about a new job, you’re not alone. Check out millions of open jobs on Glassdoor, many of which have Salary Estimates listed so you know what a role pays before you apply. Use Glassdoor’s Know Your Worth tool to get your free, personalized salary estimate to get paid what you’re worth!

Thanks to Glassdoor Team / GlassDoor
https://www.glassdoor.com/blog/types-of-bonuses/?utm_source=newsletter&utm_medium=email&utm_content=20200219_bonuses_salaries_b&utm_campaign=feb20_us

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