Compensation

Compensation, HR News & Trends

Here’s Why Women (and Men) Really Do Need to Ask For a Raise

From istockphoto.com

Last week, Microsoft CEO Satya Nadella gave some spectacularly bad advice to a group of women at the Grace Hopper Celebration of Women in Computing conference in Phoenix.

He said:

It’s not really about asking for the raise but knowing and having faith that the system will actually give you the right raises as you go along,”

I was originally supposed to be at this event, and it’s probably a good thing that my plans changed because I think I would have had to be physically restrained to not run up on the stage and shout, “He’s wrong! Please don’t do this!Read more…

Benefits, Compensation, HR Management

Is it Really Time to Say Goodbye to the Merit Matrix?

123RF Stock Photo

Bill Kutik hates the merit matrix and I suspect he is not alone.

The merit matrix is not dead — not yet, with recent WorldatWork research confirming that about three-quarters of surveyed member organizations (which tend to be larger, more well-established employers) have a merit matrix in place. But should it be? Will it be?

In his recent HR Technology column at HREOnline, Death to the Merit-Pay-Increase Matrix, Kutik (co-chair emeritus of the annual HR Technology Conference and Exhibition that is going on this week in Las Vegas), shared his issues with the matrix: Read more…

Compensation, Talent Management

Pay and Performance, or What Withholding an Increase Can Do

123RF Stock Photo

More pay might not change behavior, but withholding an increase sometimes will.

“That’s the last straw! I’m going to fire him,” said the irate mayor as he hung up the phone after mollifying a furious resident.

His city’s veteran long-service street superintendent had once again rudely blown off another citizen with a legitimate gripe. The mayor was tired of cleaning up such messes and being forced to calm down upset voters antagonized by the impolite official. Read more…

Compensation, HR Insights

Should You “Out” Employees and Make Public What They’re Paid?

Transparency

In a few weeks, I am going to talk with a local compensation association about pay transparency.

As I’ve been writing over the last few months, I think there’s a cultural shift underway, with pressure building from various angles to “out” employee pay.

It’s natural that employers in Silicon Valley are feeling the most pressure. Many of its company cultures strive to live up to open communications standards like “don’t be evil.” The rest scramble to lure talent away from these companies, even though their own devotion to core values is not as obvious to employees. Read more…

Compensation, Rewards & Recognition

The Problem When Managers Get Too Fond of Discretionary Rewards

© Dawn Hudson - Fotolia.com

Ah, management discretion.

Leaders often have a great fondness for discretionary rewards, particularly in bonus and incentive plans.

And why not? Discretionary rewards keep all the power and control with them. Wild card in hand, they are free until the moment the reward decision is made to do whatever feels right, based on their personal judgment call. Read more…

Compensation, Rewards & Recognition

Retention and Reward: Struggling With the Consequences

Illustration by Dreamstime

Employee retention is a double-edged sword.

According to Merriam Webster, in addition to being a sword with two sharp edges, this is defined as something that can have both favorable and unfavorable consequences.

That’s about right. Read more…

Benefits, Compensation

The Problem When You Have a Pay-For-Pulse Compensation Strategy

Photo by istockphoto.com

Picture the scene:

Your company doesn’t have enough money in the annual merit spend budget to grant more than an average  2 percent increase to employees, so the powers that be decide “let’s give everyone a flat 2 percent increase and call it a day.

Has this happened to you? The practice is what some would call a “pay-for-pulse” strategy, where if you haven’t been fired on the date of the scheduled increase, then you’re going to get a raise.

Every warm body who occupies a chair at that time will receive an increase — just because. Read more…

Compensation, Rewards & Recognition

World Cup Success Means a Big Payout, But Does It Motivate Anyone?

Worldcup1

Germany defeated Argentina to win the coveted FIFA Trophy last weekend, and one of the most tumultuous World Cups in recent history finally came to a close.

According to analysts it was also the most expensive World Cup in history, with the largest purse ever offered to the finalists, totaling over $350 million.

All 16 semifinalist countries will walk away with a cash prize — the Germans will return home $35 million richer, and the Argentinians will face the sting of defeat on a bed of $24 million. Even Brazil, who lost to the Germans in record-breaking fashion in the quarterfinals, will take home $18 million for fourth place. Read more…

Compensation, Talent Management

Stacked Ranking: A Pay For Performance Model You Need to Avoid

Performance Great Best

Ann Bares recently wrote a predictive article here on TLNT about the potential end of merit pay (How Will We Pay With Open Salaries and No Performance Reviews?).

In her post, Ann argues that because “open salaries” and “blowing up performance appraisals” are becoming more popular, merit pay cannot be long for the world. She ends by asking:

What will we do instead? Strictly market-based wages with “hot skill” premiums as appropriate? More emphasis on variable pay plans designed to reward specific, pre-determined individual or group metrics? Will recognition and non-cash rewards step into the void to provide the necessary differentiation for key talent?” Read more…

Compensation, Talent Management

Traditional Salary Systems Are Going the Way of the Dinosaurs

From istockphoto.com

What is the future of salary management? If current trends continue, employers will be forced to adopt a new program model.

Here are the reasons:

First, pay transparency is the future. Those who have worked in the field for any period know it has changed dramatically over the past two or three decades.

Not too long ago employees were told nothing more than their salary. Now, there are employers like Whole Foods that make everyone’s salary public. Read more…