In 1991, Bud Crystal released the book In Search of Excess, a scathing commentary on executive pay.
I was a newly minted Compensation Consultant in a large financial institution at the time, and nowhere near as cynical as I am now. I read the book, but it didn’t really resonate, probably because I worked primarily with non-executive pay.
Then I was asked to complete a market analysis on the total compensation of the Chief Financial Officer. I did all my research and analysis as I would do for any other position, and shared it with my boss. Read more…
One statement sure to raise my ire when discussing the Power of Thanks in the workplace is: “They get paid to do their job. That’s recognition enough.”
It’s a patently false statement. Pay and recognition serve very different needs, but they are in a symbiotic relationship when it comes to fulfilling those employee needs.
All the recognition in the world won’t help resolve an underpaid employee’s base needs in terms of Maslow’s Hierarchy. And pay raises, consistently and appropriately given, won’t meet the higher-order employee needs, either. Read more…
Citing money can be the best excuse for leaving an employer, even if it is untrue.
One survey blamed voluntary turnover on income. But when an employment agency surveys financial types on why people leave their jobs, it should come as no surprise that they chose money as the principal motivation for quitting.
Of course! These are groups who obsess about money. Read more…
President Obama threw down the gauntlet in January’s State of the Union address, challenging Congress to raise the federal minimum wage to $9/hour, citing a rebounding economy and stagnating inequality.
The current federal minimum is at $7.25/hour, and it’s an uphill battle of red tape, political maneuvering, and competing ideologies to get it raised. However, Congress may be late to the table, as several retailers have taken matters into their own hands. Read more…
“This pay initiative is an important part of our strategies to continue attracting and retaining the best talent in order to deliver a great shopping experience, remain competitive on wages in our U.S. markets and stay focused on our value mission,” TJX Chief Executive Carol Meyrowitz said in a statement.
Having noticed from afar the recent groundbreaking announcements that have come from major retailers in the U.S., that decision has given me cause for hope.
First Wal-Mart and now Target has, on their own initiative, decided to raise the wages of their workers. That is a good sign. I particularly liked the above statement, tying it to “attracting and retaining.” Read more…
By John E. Thompson
Expectations are that the U.S. Labor Department’s proposed regulations re-defining the federal Fair Labor Standards Act‘s executive, administrative, professional, outside-sales, and derivative exemptions will be released in the next few weeks, if not within days.
As we have said, these provisions will probably include:
- A substantial increase in the minimum salary amount; and,
- A significant narrowing of the duties-related requirements. Read more…
Last week, compensation solutions expert PayScale released its annual 2015 Compensation Best Practices Report.
PayScale titled its report Attack of the Out-of-Date Comp Plan (cute, huh?), because they believe:
- Compensation data gathered in real time (versus “aged” data) is needed to make the best compensation decisions; and,
- No company can afford to not understand that, lest said company find itself a victim of its own out-of-date business practices. (At least that’s what I think they believe.) Read more…
In case you haven’t been on the Internet in the last 36 hours, Patricia Arquette is being celebrated for more than just her Oscar win for Best Supporting Actress in Boyhood.
During Sunday night’s live Academy Awards telecast, the seasoned performer stood up for women everywhere, making a rousing plea to take action about the notorious gender pay gap.
The problem of pay disparity between men and women in Hollywood was already in the public eye thanks to the high-profile cyber-attack against Sony last December. Read more…
By John E. Thompson
A recent post appearing on the U.S. Department of Labor’s blog begins, “The federal tipped minimum wage has been $2.13/hour since 1991. That’s right – it’s been the same for nearly a quarter century.”
Actually, that’s wrong.
As we explained previously, there is no such thing as a purportedly lower “tipped minimum wage.” The federal Fair Labor Standards Act’s minimum wage for tipped employees is precisely the same as for all other non-exempt, non-tipped workers: $7.25 an hour at present. Read more…
Picture the scene: Your company is seeking to employ a Department Manager, and the leading candidate is currently “in transition.”
Human Resources has pegged the market value of the job at $75,000, but you suspect that the preferred candidate (Bob) will accept $65,000.
A seasoned and experienced professional, Bob was previously paid $77,000 by his last employer, but was caught up in a restructuring staff reduction. He’s been out of work for almost a year and is getting desperate, worried about feeding his family and paying the mortgage.
When the decision point arrives other, less qualified candidates are already making $70,000 and are asking for $75,000 and up. Some hiring managers would look at this situation as a no-brainer. “Let’s hire Bob and save $10,000 to $15,000” would be the smug decision. Read more…