Articles tagged 'Compensation'

Compensation, Talent Management

Pay and Performance, or What Withholding an Increase Can Do

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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…

HR News & Trends, Legal Issues

Not Paying Employees On Time? It’s Considered an FLSA Violation

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By John E. Thompson

A recent decision by the U.S. Court of Federal Claims underscores important propositions under the federal Fair Labor Standards Act to the effect that:

  • Failing to pay non-exempt employees the FLSA-required minimum-wage or overtime compensation by the next regular payday for the workweek (or by the next regular payday for the longer pay-period in which the workweek ends) after they can be determined violates the FLSA, and
  • Such violations give rise to claims under the FLSA for “liquidated damages,” even if the employee is later paid the underlying required wages. Read more…
HR News & Trends

2015 Salary Survey: It’s Another Year – and Another Mediocre 3% Increase

Salary increase1

Is the U.S. economy really improving?

Some people want to think it is, but if you look at the early projections for 2015 salary increases and consider such increases as a strong economic indicator, it’s barely growing — at best.

In other words, it’s time to get ready for another 3 percent raise next year.

Consulting giant Mercer just came out with their 2014/2015 U.S. Compensation Planning Survey, and “the average raise in base pay is expected to be 3.0 percent in 2015.” This is roughly in line with the early numbers from the WorldatWork’s 2014-2015 Salary Budget Survey that projects a 3.1 percent salary increase in the U.S. next year, up from the 3.0 percent employees received in 2014. 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

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

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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…