Tag: Compensation

Avoiding Pay Compression

Pay compression happens when the pay levels within an organization start to converge, and there’s less and less differentiation for things like years of experience and education levels. This happens far too easily—typically because the pace of raises doesn’t always keep up with the speed of market-level wage increases for new hires.

transparency

Why the Wage Gap Solution Is Transparency, Not Legislation

Earlier this year, the U.S. House passed the Paycheck Fairness Act to further the cause of gender wage parity. Now, I’m not against government regulation, but I’m skeptical of change that’s enforced from the top down because lawmakers can’t mandate corporate buy-in. In my experience, businesses do best when solutions come from the bottom up.

Getting Pay Equity Right

Fairness is a major factor that tends to color how employees view the workplace. If a happy, engaged employee learns that another employee doing the same job is getting 15% more than he or she is getting, all the other things that made the job seem great turn to ash.

Pros and Cons of Total Compensation Statements

A total compensation statement is something many employers opt to provide to employees to quantify and communicate the monetary value of their full compensation package. Also known as a total rewards statement or a “hidden paycheck,” a total compensation statement would include base pay plus bonuses/incentives, and also could include the quantified value of benefits […]

minimum wage

Should You Offer Employees More than the Required Minimum Wage?

Currently, as per federal law, employers are required to pay employees at least $7.25 per hour, although many state laws (and some cities and counties) have different minimum wage requirements. However, many federal lawmakers and citizens want to increase the federal minimum wage to $15 per hour because they claim that workers making less than […]