Articles tagged 'Compensation'

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

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…

Benefits, Compensation, HR News & Trends

Use of Sign-On and Retention Bonuses at an All-Time High

123RF Stock Photo

The use of sign-on and retention bonuses appears to be at an all-time high, according to a recently released WorldatWork survey on bonus programs and practices.

The research, which highlights the practices of 713 organizational participants, is the fifth iteration of a series that dates back to 2001.

Among other things (like the volatility of today’s labor market), these findings tell us that an increasing proportion of the reward dollars needed to attract and retain talent are being channeled into things other than fixed base salaries. Read more…

Benefits, Compensation

The State of Employee Pay: Is It Really a Fact Employees Are Underpaid?

123RF Stock Photo

Forbes.com calls itself, “Information for the World’s Business Leaders.” A must-read for most serious business people, it has never been known as an advocate for social change.

Yet what was its most popular blog post this week? An article in the “Entrepreneurs” section titled, “Employees Who Stay in Companies Longer Than Two Years Get Paid 50% Less.

Cameron Keng makes a well-reasoned case for this claim. His analysis of compensation practices is insightful. His conclusion? “It’s a fact that employees are underpaid.” Read more…

Benefits, Compensation

How Will We Pay With Open Salaries and No Performance Reviews?

© HitToon.com - Fotolia.com

There are a number of movements afoot in the world of work that promise to impact the way we pay people. Two in particular may well converge to provide the final straw that breaks the back of merit pay.

Let’s begin with Exhibit 1: The “Open Salaries” Movement.

Pay transparency is coming. While it is unlikely that we will reach a point where every organization opens up all compensation information for every employee, I believe that the momentum and spirit behind the pay transparency movement will lead many employers to eventually embrace it, drawing back the curtain to reveal the details of their pay programs and practices. Read more…

HR News & Trends, Legal Issues

New Push to Expand the Number of Employees Subject to Overtime

© japonico - Fotolia.com

By Michael J. Lotito and Ilyse Wolens Schuman

Two months after President Obama issued an Executive Order directing the U.S. Department of Labor to “modernize and streamline” the agency’s “white collar” overtime exemption regulations governing the scope of the executive, administrative, professional, outside sales, and computer exemptions under the Fair Labor Standards Act, Senate lawmakers have introduced legislation that builds on this idea.

Sponsored by Sen. Tom Harkin, D-Iowa, Chairman of the Senate Committee on Health, Education, Labor and Pensions, the Restoring Overtime Pay for Working Americans Act (S. 2486) would entitle substantially more workers to overtime compensation, and establish record keeping penalties for employers. Read more…

Compensation, HR News & Trends, Legal Issues

Proposed Minimum Wage Regulations for Federal Contractors Released

obama jobless

By John E. Thompson

The U.S. Department of Labor has released its proposed regulations implementing Executive Order 13658, President Obama’s directive to raise the minimum-wage rate for workers on federal contracts from $7.25 per hour to $10.10 per hour (subject to annual increases after 2015).

We wrote about this initiative earlier in the year; we will not repeat those discussions here.

Identifying all ramifications of the 181-page Notice of Proposed Rulemaking will necessitate a careful review. However, at least some ambiguities of the Executive Order itself appear to have been clarified. Read more…

Compensation, Legal Issues

Confusion in the Great Northwest: Behind Seattle’s $15 Minimum Wage

Seattle Space Needle

Earlier this month, the Seattle City Council voted to approve a gradual increase in the minimum wage, ultimately requiring city employees to be paid $15 per hour by 2017, or 2018 if the employer has more than 500 employees.

Smaller businesses will have five to seven years to phase in the increase and in either case part of tipped employees’ earnings can be applied toward the higher minimum wage for as long as 11 years. The new minimum wage ordinance will take effect April 1, 2015, when city employees making minimum wage will receive a mandatory increase to $10 per hour.

Clearly, the increase in minimum wage will have legal ramifications for both employers and their employees. Read more…

Leadership, Talent Management

Things Great Employers Do, and How You Influence Every One

easy-to-do-great-work-note engagement

It’s always great when I can share research that makes it clear how important you are to your company’s success.

I wish more of you would: A) Take the research to heart and to your business leaders; and, B) incorporate the research into your strategic priorities for compensation. After all, in addition to improving lots of things about your place of work, addressing findings like these in your own backyard could mean improved career opportunities and job security for you.

Here I go again! This time, I’m pushing research from the fine researchers from Gallup (so the research holds water), which has been publicized by those persnickety practitioners at HBR. They’re giving us practical insight into what it takes to have your engaged workers outnumber the detached ones by 9 to 1. Read more…

Compensation, HR News & Trends

Seattle’s Minimum Wage Hike to $15 Part of a Growing Local Trend

Seattle15

By Gregory Hanscom

In recent months, many state and local governments have aggressively moved to raise the minimum wage.

This week, the City of Seattle joined these ranks when its city council unanimously approved an ordinance raising the minimum wage to $15.00 an hour, the highest for any metropolis in the country.

The minimum wage increase in Seattle will be phased over differing lengths of time depending on the size and type of the employer. Read more…