This site uses cookies to improve your experience. To help us insure we adhere to various privacy regulations, please select your country/region of residence. If you do not select a country, we will assume you are from the United States. Select your Cookie Settings or view our Privacy Policy and Terms of Use.
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Used for the proper function of the website
Used for monitoring website traffic and interactions
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Strictly Necessary: Used for the proper function of the website
Performance/Analytics: Used for monitoring website traffic and interactions
We'll identify some of their missteps -- common to companies their size -- then discuss what they can do to achieve healthy compensation habits. Case background: In the first article , we looked at the compensation habits of a company called Healthy Gadgets, a new medical device company that began with fewer than 100 employees.
Too often in human history, this meant that people with less power were simply compelled to work, and incentives — if they existed — consisted merely of being allowed to survive. After several evolutionary waves, we have a deeper insight into what truly motivates people, and today’s incentives are about far more than compensation.
Like every company back to the Cro-Magnon period, they are starting out by looking at compensation. You've got to start somewhere and insight into compensation provides the newbie with a staffing study, organizational chart, large portion of operating budget and so on. Revs up your recruiting plans, too. So back to that paycheck.
Here are a few tips from organizations that have learned about the ugly combo of panic and compensation. Let's try again with a bigger [select an option: salary, sign-on bonus, incentive, equity offering, loan opportunity and, and, and].". None of these problems could be solved by handing out more compensation.
In the same Snagajob survey referenced above, it appears that 27% of candidates thought bonuses are the most important work perk, so much so that 54% of workers surveyed would change jobs if it meant a bonus structure was included in their compensation plan. That’s because bonuses are usually based on work performance.
If you're starting to see those building blocks through the haze, let's take a shot at a parallel compensation case story. Her firm, re:Think Consulting, provides market pay information and designs base salary structures, incentive plans, career paths and their implementation plans.
After all, we often don't make much of a communication effort when we award bonuses. When it comes to bonuses, the understood link with business results is often sketchy, too. If merit increases are about individual performance, bonuses are about team performance on the organizational level. Employees remember their multiplier.
Your trade-off program(s) should probably fall under categories like professional growth, career opportunities, work breaks, medium-term incentives and so on. Her firm, re:Think Consulting, provides market pay information and designs base salary structures, incentive plans, career paths and their implementation plans.
Closing the books on merit increases may be on schedule, but there are always loose ends to clear up before you get slammed with Q1 bonus and incentive work. Her firm, re:Think Consulting, provides market pay information and designs base salary structures, incentive plans, career paths and their implementation plans.
Compensation departments often run on the "no news is good news" communications strategy, choosing to take the upper hand in their relationship with employees. How long will it work for compensation departments to play it close to the vest in a world where information changes hands every nanosecond? It's barely working now.
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"? Where do you start?
‘Tis the season for holiday parties, gift swaps, and … budgets, if you’re in compensation and total rewards. Interestingly, the same survey shows that annual performance bonuses will decline slightly next year, while discretionary bonuses will increase slightly. Read the eBook and learn: A brief history of the annual bonus.
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. Singing, Dancing and Posing: Aligning Incentives, Performance Metrics and Strategic Objectives by Stephanie Thomas.
Many of our colleagues would say that compensation has nothing to do with feelings. On the other hand, feelings have a lot to do with compensation COMMUNICATIONS. On the other hand, feelings have a lot to do with compensation COMMUNICATIONS. Addressing feelings through compensation communications is tricky business.
This is no year for the same old compensation communications. Her firm, re:Think Consulting, provides market pay information and designs base salary structures, incentive plans, career paths and their implementation plans. Earlier, she was a Principal at Willis Towers Watson.
Everything we do in compensation is communications. Change management should be the foundation of 90% of compensation communications. New incentive coming up next year? No wonder there can be so much frustration about the effectiveness of compensation communications. Here are three basics of our work.
Here are three tips you can use any time during the year, but most of all during merit increase and incentive award periods. The compensation communication cycle takes many weeks -- too long to be disconnected from your audiences. Treat compensation as part of the business cycle. Get yourself a champion (or champions).
What happens when you disappear raises, slim down bonuses, freeze salaries and/or jack up benefit costs? Plus you've put yourself into a situation that will be difficult to explain to anyone's satisfaction unless your employees are well-briefed on your company's compensation philosophy and administration. Speak clearly.
What I'm talking about is giving employees enough information to understand how compensation decisions are made in your culture. It's time to accept that your job has changed from gatekeeper (limiting access to pay knowledge until employees are "ready") to educator (describing the nuts and bolts of salaries and incentives).
It's like spreading peanut butter evenly, a favorite simile in the compensation industry. Remember, some companies have begun to put their differentiation efforts into incentive payments rather than salary increases. Incentive decisions can also be peanut buttered, as I'm sure you've noticed.
Not a great foundation for a compensation practice! salary increases and bonuses with flimsy links to everyday work, it's hard to engage people beyond job security unless you have career development alternatives to offer. Some of the findings verify long held beliefs but many more are counterintuitive. In a time of 2.5%
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. Her firm, re:Think Consulting, provides market pay information and designs base salary structures, incentive plans, career paths and their implementation plans.
In this Classic post, Margaret O'Hanlon introduces us to a couple of "laws" touted in Economics that offer lessons we'd be wise to add to our compensation (and broader HR) toolkits! Her firm, re:Think Consulting, provides market pay information and designs base salary structures, incentive plans, career paths and their implementation plans.
What, if anything, does that have to do with our compensation work? You know, just like if you have a new compensation change or improvement, why don't employees and managers just buy it and applaud your innovation? We were talking about where marketing fits in business operations. Let's start with the humdrum basics.
If you're an HR office of one, busily juggling everything from beneficiary forms to incentive awards, it's hard to believe that you share any pressures with other HR managers. Here are some of the compensation decisions typically made in a turbo-charged, highly fragmented setting like Healthy Gadgets'. This is the first in a series.
If you’re reading this post, it’s likely you’re running incentives to partners and using some sort of system to manage it all. Partner incentives, like any system, involves a set of structured rules, requirements, and budgets in order to ensure operational and cost control. As they say, wealth is all relative. For example: .
Bonuses are paid, last year's results are old news and grand plans for this year have been signed, sealed and delivered. Polish your compensation philosophy. Don't treat your compensation program like a junk drawer, the place where you stash odds and ends without any clear purpose. Looking at clear skies these days?
Employee Rewards and Recognition: 10 Incentives that Don't Work. Incentive Rewards. Our Incentive rewards inspire motivation in your participants and produce the most ROI for your brand. Incentive Programs. Our incentive programs are strategically designed to help produce measurable growth for your business.
Today, we feature a Classic truth from Margaret O'Hanlon about what ultimately enables your compensation plans to achieve greatness. Instead of bemoaning the state of things, though, I want to point out aspects of their research that will help our compensation design. Editor's Note: The truth hurts. and it can set you free!
Any day now you're going to need to get serious about planning compensation communications. I thought I'd give you a condensed version of how to organize communications for a calendar-year compensation plan. Planning for compensation communications can seem so rigid -- don't let that happen to you this year.
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.
Compensation Cafe has covered Wells Fargo's pay practices since 2009, when the Bank canceled prefunded employee recognition and rewards events in the midst of the Recession, blaming it on federal government restrictions on bank practices following the subprime mortgage crisis. That means your compensation plan, too.). What's the Point?
To use money as a motivator, managers can link sales results to financial rewards, plus add incentives such as bonuses for outstanding performance. Low compensation can hinder motivation as well as performance. In the absence of these factors, even the best employees won’t perform.
If there is no complete definition of regular rate of pay, their lawyers ask, what if the government counts T-shirts and anniversary bonuses? SHRM is publicly supporting the DOL's proposed new rule specifying that the following are excluded from the definition of regular rate of pay: Anniversary bonuses. Discounts on gift cards.
Her firm, re:Think Consulting, provides market pay information and designs base salary structures, incentive plans, career paths and their implementation plans. Earlier, she was a Principal at Willis Towers Watson.
Turns out that you have to take better care of Human Resources than that, especially compensation. Want to keep things from getting rocky and make the most of your compensation budget? Or, and maybe less costly, engage a compensation consultant who has good surveys.) Get credit for your incentives.
This is the fourth in a Compensation Cafe series for small and early-stage companies. And it's important to note that while many HR practitioners have participated in compensation projects, Healthy Gadgets needs an experienced specialist to help them address complexities -- especially in Sales.
Updating compensation practices or redesigning a plan? Whether you are evaluating or pricing jobs, creating an incentive or new salary ranges, here are some "ingredients" that will help you cook up a cake that gets more attention -- because you're paying closer attention. Demographics -- which always hold surprises, in my experience.
Do we really have grassroots support for compensation philosophies? Compensation or total rewards departments that have a philosophy statement often report that they don't know where it is, or whether it is up to date. However, we seem to undervalue stating our compensation philosophy in the rush to get work done.
Editor's Note: How is your compensation program's relationship with your employees going. In her Classic post, Margaret O'Hanlon shows us how to rethink this relationship by considering how employee compensation is a lot like dating. Show me that you've heard me by giving me more of what matters the most to me -- cash compensation."
Employee compensation was a lead story in The New York Times on Tuesday. You can find the headline " One-Time Bonuses and Perks Muscle Out Pay Raises for Workers " on the front page of the Business Day section. Employee compensation is a trending media topic, I believe -- and I've been trying to get you to believe it, too.
You may have already completed performance appraisal discussions, but performance should certainly be part of the discussion when 2014 increases and bonuses are covered with employees. Explaining consistently to all employees, how the budgets have been allocated for merit increases and bonuses.
Editor's Note: It may not be too late to positively impact those year-end compensation conversations happening at your organization. You may have already completed performance appraisal discussions, but performance should certainly be part of the discussion when 2014 increases and bonuses are covered with employees.
Odds are there are going to be a range of tough, candid compensation communications in the coming months. Compensation has often taken this "shelter in place" approach to employee communications. Incentives. After all, compensation is going to be a big issue. Why not just deal with them when you have to? Annual planning.
We organize all of the trending information in your field so you don't have to. Join 318,000+ users and stay up to date on the latest articles your peers are reading.
You know about us, now we want to get to know you!
Let's personalize your content
Let's get even more personalized
We recognize your account from another site in our network, please click 'Send Email' below to continue with verifying your account and setting a password.
Let's personalize your content