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…
By John E. Thompson
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…
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.
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…
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…
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…
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.”
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…
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…