The relationship between inflation and compensation is a strong link that greatly impacts every organization. HR professionals have the important responsibility of assisting teams through challenging economic times to ensure that compensation remains competitive. So, how exactly does inflation affect compensation, and how should HR respond? Understanding the Connection: Simply put, inflation refers to the… Read on…
In the era before working remotely was popular, paying workers based on their location was a relatively simple and rarely-contested issue. Adjust employee salaries while taking into account what’s necessary to pay expenses in the area where they live – easy, right? Well now in the age of COVID-19, we’re beginning to learn that things… Read on…
Vaccine mandates in the workplace have been a hot topic for quite some time now, and the recent news that the Pfizer vaccine has been approved by the FDA (with Moderna expected to follow) has added a new level of perspective to the conversation. While many companies have already started requiring vaccines for their employees,… 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…