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Building a Consistent and Sustainable Compensation Strategy for Your Business September 24th, 2024 Share on Facebook Share on Facebook Share on LinkedIn Share on LinkedIn In today’s competitive job market, crafting a well-structured and sustainable compensation strategy is crucial for attracting, retaining, and motivating top talent.
In my last blog article , I explained how you can cut and paste your way to a compensation philosophy. In comparison, strategic insights occur when you put your compensation practices and philosophy in a new light, where the illumination falls on the challenges your company will face tomorrow. Don't know where to start?
By tracking these metrics, HR teams can make proactive decisions about hiring, training, and compensation. Furthermore, analyzing employee performance data helps in developing tailored compensation plans that align with both individual contributions and organizational goals, fostering a more engaged workforce.
You Asked, We Answered: Top Questions About Pay Transparency September 26th, 2024 Share on Facebook Share on Facebook Share on LinkedIn Share on LinkedIn In today’s evolving employment landscape, pay transparency has become a hot topic, prompting many companies to rethink their compensation strategies.
Meal and rest periods: Short breaks are usually not compensable, but longer meal periods may be compensable if employees are required to be on duty or at the employer’s premises. Travel time: Travel time to and from work is typically not compensable. However, travel time during the workday is often compensable.
Cooley (otherwise know as "the #1 law firm on Fortune's best company list") does a great job of aggregating early pay-ratio trends from a variety of sources including Mercer , Bloomberg and Compensation Advisory Partners. Margaret is a Board member of the Bay Area Compensation Association (BACA).
Plus, every bit of research tells us it's critical to effective compensation. If you're a regular reader of Compensation Cafe, you know that when we talk about pay transparency, we're referring to being clear(er) about how compensation works. Create a cost/benefit analysis as the last step.
This specifically applies to compensation as well. Trends in Transparency : A wide variety of trends have contributed to this increased demand for compensation transparency. Leveling the playing field between two parties in an exchange helps both to feel like they got a fair deal, which is essential in an employment situation.
Here are a few tips from organizations that have learned about the ugly combo of panic and compensation. I often wonder why HR doesn't advise them to do a deeper analysis. None of these problems could be solved by handing out more compensation. Everything you do in compensation is communication, so why not do everything better?
We really don't spend much time studying the emotions we feel as we practice compensation. Some people find compensation basics boring -- job analysis, job definition, job pricing using surveys and so on. Some people find compensation basics boring -- job analysis, job definition, job pricing using surveys and so on.
It’s important to identify your key targets as early as possible, and to do proper research and analysis to learn how you can attract their interests. . Provide free promotional resources such as ebooks or online courses. Workers compensation insurance is required for almost all businesses with employees in all states except Texas.
You'll find a long list of articles in Compensation Cafe recommending that you create a "message platform" to build your Compensation communications. (It Of course, anyone in Compensation can list a set of messages describing the value proposition of working for your company. How is a Compensation message platform different?
Employee engagement surveys can help identify the factors that contribute to employee turnover, such as lack of recognition, limited career growth opportunities, or inadequate compensation. Furthermore, engagement surveys can help identify employees at risk of leaving.
HR Brew Frequency: 3x per week Best for: HR pros who want the latest news and analysis without fluff. It includes links to case studies, eBooks, webinars, and thought leadership from their network of culture-first companies. Why subscribe: Evidence-based HR strategies DEI and culture-focused Excellent downloadable resources 6.
Employee benefits are non-salary compensation and perks. They consist of government mandated and voluntary indirect and non-cash compensation. . Pew Research Center analysis of U.S. What are employee benefits? . Millennials have had an enormous impact on the types of benefits offered and with good reason.
DEI leaders should provide executives an analysis of the effect the RIF will have on diversity and equity metrics before final decisions are made: Will there be an outsized impact on women in leadership roles? Partner with your compensation/total rewards team to tackle pay equity and pay transparency.
But otherwise, it often seems that benefits fit more comfortably into the "Total Rewards" concept than compensation does. So why should compensation practitioners bother? After all, "Total Compensation" communicates its meaning clearly, why jam it into "Total Rewards"? Not sure how to do this kind of analysis?
The outcome of a pay equity study is an analysis of what causes pay inequities and plans for fixing those identified. Check out this series on Compensation Cafe: What pay transparency means , where to start, how to talk it over with executives , and deciding how far to go. Ready to get started on communications?
Most compensation practitioners can tick off the obvious ones on their fingers. Go back through Compensation Cafe archives and you find many articles on each of these plan design parameters. Analysis of divisional productivity data (followed by some manager interviews) can tell you a lot about performance obstacles, for instance.
What have data and analytics got to do with compensation communications? Imagine you had to tell the Compensation Committee that the company couldn't afford one of their proposals. Many clients are surprised to learn that you "take things apart to put them back together again" when you design compensation communications.
Cultural fit analysis. Compensation. Download the eBook and find out what makes people happy to go to work every day and give their best, with real answers from employees across the world. A preliminary hiring process may include the following: Defining job description. Attracting talented candidates. Short-listing Profiles.
Not sure that this question is top of mind for those of us in the compensation space, though. Designing and implementing compensation programs that work -- that do the right things with the money used, for the organization and for the people -- will always require that the practitioner understand the humans at least as well as the data.
Covey discusses the four zones of the trust matrix, a combination of a high or low propensity of trust couple with a high or low degree of analysis. These are the micromanagers who have a low propensity of trust coupled with a low degree of analysis. On one end of the spectrum is indecision.
Every company has metrics and KPIs in place to regularly observe and measure performance, but when it comes to assessing people, quantitative analysis is only half the story. This post includes excerpts from our latest eBook: 15Five’s Comprehensive OKR Guide: How To Launch, Track, and Achieve Your Objectives & Key Results.
That's the theme of most HR conversations about compensation communications. Think our compensation communication urban legends get in the way? Why not apply the microtargeting approach to compensation communications, especially with managers? You can picture the conversations, because we've all been in them.
The compensation plan that simply isn't working. Not infrequently, we HR and compensation pros can get enamored with a particular idea or approach. This is true for compensation programs as well. In the compensation space, we are familiar with this as a version of analysis paralysis. What to do? Do you fix it?
Editor's Note: Struggling to root out those scary "legends" about how compensation works at your organization? That's the theme of most HR conversations about compensation communications. Think our compensation communication urban legends get in the way? Margaret O'Hanlon shows us how in this Classic post on pay communication!
Initial analysis showed that the cost associated with the company’s turnover was more than $50 million a year in direct and indirect costs. The company hired Sibson to review their compensation plans in order to determine how to adjust compensation to retain and attract the right sales talent. Download the ebook here!
You''ve been great and generous patrons of the Compensation Cafe -- that''s how I feel. Here''s to the nights and weekends that you worked to keep your department/project/data analysis up to date. Margaret O''Hanlon, CCP has written for Compensation Cafe since its founding in 2009.
Employers must comply with state and local labor laws to ensure they’re meeting all relevant obligations related to employee compensation and benefits. Under this exemption, employees may be compensated either on a salary, or fee basis at a rate not less than $684 per week or, if compensated on an hourly basis, at a rate not less than $27.63
Note: I initially received the textbook in an ebook format, accessible via the VitalSource website or VitalSource Bookshelf software program that you download and install. The VitalSource Bookshelf ebook platform (website and software program) was so frustrating and clumsy to use that I almost didn’t review this book.
Image – New Version of Onboarding in Process Variant Manager SuccessFactors Compensation and Variable Pay The 2H 2024 release brings numerous enhancements to Compensation and Variable Pay, with several standout features designed to streamline processes and enhance user experience.
Their analysis found Salesforce already touched most of the potential candidates in the San Francisco area. This analysis provided the company a financially sound reason to open offices in those areas. Analytics helps you uncover hidden biases in your organization’s review and compensation structures. Identify diverse talent.
Articles, ebooks, podcasts, newsletters, webinars, and many other resources are available, which will help you meet the HR needs of your organization. Opinion and analysis of topics based on employment law, talent management, training and development, and employee benefits are discussed in detail on this website. Compensation.
By leveraging data insights into employee sentiment, engagement, and performance, HR professionals are equipped with valuable information to make informed decisions related to talent management, workforce planning, and compensation strategies. Finding and retaining top talent is a critical challenge in today’s competitive market.
I won’t feel any better until I have a chat with a few of my compensation colleagues. We’ll break things down to see if we agree with the analysis. Employees are happy to sit tight right now. Talk about the “head in the sand” strategy. . We’ll commiserate on the challenges we’re facing.
This wasn’t just about optics; it necessitated HR professionals to re-evaluate compensation strategies, talent acquisition models, and operational costs in low-wage sectors. Pay Equity Transparency: Lifting the Veil: The conversation surrounding pay equity graduated from hushed boardrooms to public discourse.
Unfortunately, after over a century of analysis , there’s still no consensus among leaders and business scholars as to what the “ideal” looks like. Remind them that compensation decisions are based on the market rate of the job and factors like experience and performance. For some, less is more.
I happen to love statistics and analysis, so I hope I'm not giving you bum advice, but if there ever were a report that could teach us a thing or two about handling data analysis superbly, it's Gallup 's recent report, " The Relationship Between Engagement at Work and Organizational Outcomes.
If your compensation system works on a calendar year, you're going to be asked to start a compensation communication plan in September. If you are going to make sure your compensation and performance management programs are procedurally fair , you've got research, analysis and strategy development to complete.
Insights that would be valuable to your compensation strategy development. I'm guessing that this type of analysis would offer insights that would be valuable for both strategy and communications. We know that increase practices since the Recession have led to relatively lower salaries. But surely there are additional reasons?
Consider the broad categories of organizational health used in the analysis. A former Board member for the Bay Area Compensation Association (BACA), Margaret coauthored the popular eBook, Everything You Do (in Compensation) Is Communications, a toolkit that all practitioners can find at everythingiscommunication.com.
The third step toward pay transparency is a cost/benefit analysis. Oddly enough, in this case your cost/benefit analysis should start with costs. On the other hand, there's a lot to be gained by getting everyone excited about having more information and insight into their compensation. Her firm is re:Think Consulting.
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