2020 taught us a lot – on multiple levels. For one thing, all of this new free time the majority of us had been granted while in quarantine provided ample opportunity to spend time learning new skills. Maybe you finally learned how to play that guitar that’s been gathering dust for years, or how to… Read on…
I read a study a few years back that alerted the world to something everyone already knew: Sales employees are more motivated by compensation than all other employees. Knock me over with a feather, that’s a shock! Of course, there are other factors that motivate a company’s sales force, but let’s be honest: money drives… Read on…
I’m not your boss. I’m not even your coworker or your employee. Right now, I’m your job promotion fairy, and if you’re an HR professional, I hereby grant you a promotion. You are now the CFO of Labor Cost. Congratulations, you’ve earned it. Since salaries are the largest cost item in most organizations, it’s extremely… Read on…
While most organizations use some form of job evaluation to determine the worth of jobs, there are many factors to consider when valuing work. There are internal factors such as being fair and consistent with how employees are compensated. Therefore, organizations typically use the following techniques to measure a job’s value: Perform a job analysis to… Read on…
Imagine you’re sitting in a dark room with the shades drawn. No, you’re not about to turn on Netflix or take a nap. You’re at work—and you’re not alone. You, as an HR professional, and several managers in your organization are participating in your annual tradition: Performance Ranking. You’re determining every employee’s value relative to… Read on…
Salary increases are just like our relatives. Merit increases are the close relatives you see regularly, and promotional increases are the distant cousin you only see every few years. You like the distant cousin, they’re flashy and fun every time you see them, but you want to learn more about them. There’s a reason everyone… Read on…
There’s at least one in every class. I teach a Compensation Management seminar, and every iteration there’s at least one person with the same problem: “We have a chronic issue with compensation compression.” They’re right to call it chronic, because it’s a potentially fatal diagnosis for any company. First of all, what is compensation compression?… Read on…
She was desperate. A Human Resources Manager was on the phone with me, and she needed help. “Our corporate headquarters is in Detroit,” she said, “but we’re trying to attract and retain engineers in our Boston offices.” “Where is your salary data coming from?” I asked. “Michigan.” I like Michigan and the Motor City just… Read on…
Who knew William Shakespeare knew so much about human resources and compensation? Seriously. If you don’t believe me, just read this line from Romeo and Juliet: “What’s in a name? That which we call a rose by any other name would smell as sweet.” I don’t mean to take us back to freshman English class—I… Read on…
Across the business landscape, pressure is mounting for pay transparency. With Pay Equity legislation sweeping the U.S., as well as company cultures transforming to embrace transparency, pay openness is a critical question in every organization. But how far is your organization willing to go? The degree to which you share your compensation formula with your… Read on…