Mastering The New World Of Managing Performance

We have now been through a decade of experiments, dialogue and eventually debate in exploring the right way to measure individual performance in organizations. The big shifts primarily started about five years back when some pioneers of the performance management (PM) revolution said goodbye to what came to be called the “traditional” way to manage performance. In most instances, the inefficiencies of the traditional approach were blamed on the rating system. As the conversations and experiments continued to evolve, there has been an emerging realization that PM is about more than eliminating or redoing the rating structure. READ MORE

Deferred Compensation Plans and FICA Taxes: A Valentine’s Day Match or Disaster?

While February is usually the month for valentines and candy conversation hearts, I hope you will use this month to give a little love and attention to one of the often overlooked “other” taxes applied to payments from nonqualified deferred compensation plans (NQDC Plans)—FICA taxes! Companies commonly fail to implement the unique FICA tax rules applied to NGDC Plans and these special rules can create confusion for participating executives. This can result in the company’s potential exposure to IRS penalties, higher tax liabilities for the company and the employees, and unhappy employees. Confirming proper FICA tax treatment for your NQDC Plans is time well spent. READ MORE

This map shows where an increased minimum wage would boost incomes the most

Across the country, grassroots campaigns, most prominently Fight for 15, have pushed governments to increase the minimum wage, and companies to take the initiative to raise them even if they aren’t required to. States like New York and California have set a $15 minimum wage, as have cities like Seattle. In the last year, Amazon announced $15-per-hour as its wage floor. But despite this momentum, the federal minimum wage has not increased since 2009, when it was set at $7.25 per hour. After so many years of stagnation, inflation has eroded the value of this hourly pay to just $6.19. Over the past decade, too, the cost of living in the U.S. has continued to rise, leaving families dependent on the minimum wage struggling. READ MORE

The Case against a National Minimum Wage

One of the major agenda items for the new Democratic House majority is a proposal to more than double the federal minimum wage, from $7.25 an hour to $15 an hour. The last such hike came in 2007, the last time Nancy Pelosi and her caucus took over the House; a recession and spike in unemployment followed, curbing further demands for minimum-wage increases. The fundamental problem, however, is not with the minimum wage so much as the national minimum wage. READ MORE

Low Wage, Not Low Skill: Why Devaluing Our Workers Matters

During a recent hotel stay, I had a conversation about how staff divides gratuities with the gentleman who brought my room service. It evolved into a master class—generously given by him—on how to manage hours and earnings in the hospitality industry. He told me the advice he gives less experienced staff on how to time joining a new hotel so they can get the tenure needed to control their schedules. I could see he didn’t just have a Plan B, but a Plan C, D and E for when his children get sick, or he’s needed on an extra shift. Every day, week and month, he manages a complex, ever-shifting matrix that would impress any director of logistics. READ MORE

Excessive Stock-Based Compensation Is Damaging Shareholder Returns

On January 30th, Alibaba released their earnings for Q4 of last year. On the whole, their numbers were very strong when the recent weakness in the Chinese economy is taken into account. Most importantly, for me, the 84% growth in their Cloud Computing segment is outstanding, and I believe this is what will drive the overall business's growth over the coming years. A positive sign is that although revenue growth is so high, they continue to operate at a break-even level, suggesting that it should be able to make a profit in the near future. READ MORE

Mind the Gap: Seeking Far-Reaching Solutions to Pay Equity

The gender pay gap has closed some since the Equal Pay Act was signed in 1963, but many politicians and media accounts cite studies that claim women are still paid 80 cents for every dollar paid to men. Some compensation thought leaders contend such conclusions are oversimplifications because they fail to consider job-related pay equity factors such as disparate pay for different professions, the availability of advancement opportunities, education, work experience, tenure and pay-for-performance. READ MORE