By David Hackett
“We get up at 12 and start to work at 1! Take an hour for lunch and then, at 2, we’re done! Jolly good fun!”
In the 1939 classic The Wizard of Oz, when Dorothy finally reaches the city of Oz she’s met by a happy bunch of residents who sing these lyrics. But working schedules in Oz are a far cry from reality where, instead of fewer hours, many are often asked to work extra hours.
The question this often leaves for employers is, “how and when should workers be paid for overtime?” Read more…
It’s an age-old negotiation. Pay me more and I will perform. Perform better and I will pay you.
So what comes first, the payment or the performance?
Hay Group’s Annual CEO Compensation Survey was released last week. The results show the highest weighting ever (31 percent) for long-term performance plans.
Was this a result of executive pay programs that have been re-geared with performance metrics since the advent of Say on Pay? Was this the result of CEOs performing better as more attention has been paid to their actions and behaviors? Or, was this caused by something else? Read more…
By Lorene Schaefer
In 1925, the famed Scopes Monkey Trial occurred in Tennessee. The public feverishly debated whether evolution contradicted certain religious teachings and whether humans, viewed by many to be a superior lot, could be related in any respect to monkeys.
A recent video on monkey behavior (and, perhaps, human psychology?) is certainly telling.
Briefly, two monkeys are given the same job, but are rewarded differently. The slighted monkey receives watery cucumbers rather than juicy grapes like his co-worker-monkey does for the same work. The reaction of the slighted monkey is priceless!
Here’s the video: Read more…
By John E. Thompson
U.S. Sen. Elizabeth Warren, D-MA, recently asked during a Senate committee hearing why the federal Fair Labor Standards Act’s $7.25-per-hour minimum wage has not already increased over time to the level of $22 an hour.
A professor appearing at the hearing opined that a case could be made for a current rate of $33 an hour.
So why isn’t the FLSA minimum wage more than 450 percent higher than it is today? Read more…
It’s that time of year! You can feel it in the air. The anticipation … the preparation … the dread.
No, not the coming of Spring. The annual performance review.
Many companies target the March/April time frame for conducting the reviews and handing out merit increases. Except, of course, for those who choose to disassociate the review from the pay increase in an effort to communicate to employees that the review itself has nothing to do with raises.
(This is futile, by the way. Everyone knows their raise is dependent on the review in some fashion.) Read more…
You’ve seen your company’s want ads and heard the pitch from your recruiters; you provide competitive wages. That’s got to be a strong hook for attracting talent.
Pay structures are based on market trends, so the opportunities offered employees support your retention and motivation strategies.
Not enough. Read more…
Our salary ranges are not serving us as well as they once may have.
We know it. Unhappily, most employees know it, too.
My Compensation Cafe colleague Margaret O’Hanlon called attention to this reality last week in her post Do You Know What Your Salary Ranges Mean?
Margaret notes that the traditional salary range model, which communicates the essence of the deal we offer employees, no longer delivers on its purported promises. Read more…
After reviewing the EEOC’s newly-approved Strategic Enforcement Plan, there are no surprises for employers when it comes to identifying where to concentrate their EEO compliance efforts for the next four years.
But one of the areas the EEOC intends to focus on did come as a surprise: enforcement of equal pay laws.
Why was it a surprise? Enforcement of equal pay laws was added to the strategic plan at the last minute. Read more…
Why do so many of us get so bent out of shape about CEO compensation, but not about that of other relatively highly paid people?
That is the central question explored by Cornell University’s Kevin Hallock in his December Workspan column Research for the Real World, where he compares the growth in pay at the 95th percentile (top 5 percent) for CEOs and average U.S. workers to that of athletes in Major League Baseball, the National Basketball Association, the National Football League and the National Hockey League.
From 1995 to 2010, pay for this group of U.S. workers grew 69 percent while pay for the CEO group increased by 240 percent (one of those statistic that often provokes outrage). Read more…
In the years leading up to the recession, the talent market was hot. Unemployment in 2007 was hovering in the 4.5 percent range and U.S. GDP growth – while not as robust as the late 1990s – had recovered nicely from the business and geo-political turmoil of the early part of the decade.
These factors created a business environment where the need for new senior executive talent was at a premium, and the price companies were willing to pay for such talent showed it.
In a recent study of its executive placements since 2006, Salveson Stetson Group, a retained executive search firm, found that executives changing jobs in the two years leading up to the financial meltdown enjoyed a windfall in terms of compensation increases. On average, they were receiving an increase in total compensation of almost 25 percent. Read more…