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Compensation structures are not something you set and forget, said Tina Marie Wohlfield, SHRM-SCP, founder and chief people strategist at HR consultancy TIMAWO LLC in Fraser, Mich., near Detroit.
Wohlfield offered tips to keep pay strategies up-to-date on June 14 at the SHRM Annual Conference & Expo 2022 in New Orleans, in her concurrent session "When Pay Strategies Fail—Why HR Needs to Act Now." READ MORE
American workers have seen their wages climb faster than at any time since the mid-1980s. But inflation has risen so fast that workers have actually been handed a pay cut instead.
Every time inflation ticks up, it takes a bite out of workers' pay and chews away at their bank accounts. And this current stretch of inflation -- triggered by a confluence of events, including the war in Ukraine and the ongoing pandemic -- has had a voracious appetite. READ MORE
As part of the end-of-session rush of legislative activity, New York State lawmakers passed a bill that will require private-sector employers in the state to disclose salary ranges on job postings.
The bill now heads to Gov. Kathy Hochul for her signature or veto.
If enacted, which is expected, New York will be the latest state to jump on the hottest trend in pay equity legislation. READ MORE
A viral post on Reddit's popular r/antiwork forum has sparked debate this week, with users slamming a company that asked a departing worker to disclose their new salary.
Redditor u/Agile_Imagination_40, who is from British Columbia, Canada, shared a screenshot of the conversation after they put in their two-week notice at work. READ MORE
Montrell Carmouche praises Mexico's white beaches and coral reefs, selling it by telephone as a holiday destination while trying not to reveal that he has never been there -- or that he is, in fact, an inmate imprisoned in the United States.
His story -- and his pay, a meager $6 commission per sale -- are featured in a report released this week by the powerful American Civil Liberties Union (ACLU) and the University of Chicago which documents the work of the US prison population. READ MORE
New survey data released by executive compensation consultancy Pearl Meyer show that 70% of organizations implemented larger salary increases this year compared to 2021, with 21% reporting “significantly higher” levels. When polled in November 2021, companies expecting larger increases indicated an average of 4.2%. The data show actual implemented increases were even higher than anticipated at 4.8%. READ MORE
Variable pay incentive bonuses are becoming a larger part of employee compensation, but that doesn't mean organizations can ignore their base pay salary structures.
Before paying bonuses, organizations "must first have appropriate base pay as an anchor," said John A. Rubino, founder and president of Rubino Consulting Services, a global HR consulting firm based in Pound Ridge, N.Y. He spoke June 14 at the SHRM Annual Conference & Expo 2022 (SHRM22) in New Orleans. READ MORE
The U.S. stock market rout that has put U.S. equities in a bear market isn't just reducing the net worth of billionaires like Elon Musk and Jeff Bezos. It's also taking a toll on Americans' retirement savings, wiping out trillions of dollars in value.
The selloff has erased nearly $3 trillion from U.S. retirement accounts, according to Alicia Munnell, director of the Center for Retirement Research at Boston College. By her calculations, 401(k) plan participants have lost about $1.4 trillion from their accounts since the end of 2021. People with IRAs — most of which are 401(k) rollovers — have lost $2 trillion this year. READ MORE
Sen. Bernie Sanders, I-Vt., during a Senate committee hearing on the federal response to the COVID-19 pandemic, brought up a nine-figure "golden parachute" payment that Moderna CEO Stephane Bancel received, criticizing the huge sum that came after the vaccine developer received billions in government funding.
Sanders was not just upset about the payment itself, but about how FDA Commissioner Robert Califf was not aware of it. When asked about the payment, Califf said he was "not aware of that," as it was "not something I would keep up with" in his job. READ MORE
At what point in your life do you learn to negotiate? As a child in a military family, I think they skipped over that lesson. No one who went to Boot Camp negotiated with a three-year-old afterwards. That’s just not how we handled tiny terrorists in the military. My childhood was non-negotiable.
In all fairness, negotiation was not the more important career skill to have – as a child or for my parents as soldiers. In the military, you get what you get. Based on a formula consisting of location, time, education, and a few other variables, pay is calculated. There’s a compensation plan. READ MORE
A proposed bill in California would make pay more transparent. Under the bill, employers with 15 or more employees would have to include pay range in all of their job postings and publicly report how much certain groups of employees are paid.
"I give the bill a moderate chance of passing," said Anthony Zaller, an attorney with Zaller Law Group, based in El Segundo, Calif. "If passed, it would be one of the strongest pay transparency laws in the country. Not only does the bill require employers to report wages for employees across race, gender and position in the company, it also proposes to publish each employer's information on the Internet." READ MORE
Actual salary-range numbers are increasingly showing up in companies' job postings.
Why it matters: Applying for a job with no real idea of the kind of money you might be making could soon become a headache of the past. READ MORE
Microsoft has announced a raft of beneficial new employment policies. The biggest change is it will begin divulging salary ranges for open positions. Microsoft isn’t being benevolent — this will be required by Washington state law starting in 2023. However, the company has also announced three other changes to its employment policies. Given the competitive nature of the tech market, it might just spur other companies to do likewise. READ MORE
The internet is roaring with laughter over a Reddit post telling the story of a job recruiter who was angry at what a potential prospect was currently making.
The original poster (OP), u/Main-Yogurtcloset-82, shared their story to the popular r/antiwork subreddit, and earned over 18,200 upvotes and 900 comments in four hours. READ MORE
A tightening labor market has given employees more power in negotiating salary and benefits, explains Christopher T. Wall, a partner at Stoel Rives in Seattle. He discusses the ways this trend, combined with a high turnover rate, will impact equal pay litigation and offers ways to stave off lawsuits. READ MORE
Female lawyers’ median weekly pay is 26.5% less than male lawyers, and the gap is larger for partners, says Christine Hendrickson, vice president at Syndio, a tech company that helps employers analyze pay data. She discusses flaws in law firm data and suggests ways firms can fix pay practices that contribute to the compensation gap. READ MORE
Turning to executive compensation in North America, IR Magazine’s spokesperson said a higher proportion of North American companies, compared with companies in other regions, report that no one from the board speaks to investors about executive compensation. ‘But 52 percent of global investors say they expect the board to discuss this with them,’ the spokesperson said. READ MORE
The Ninth Circuit recently concluded that job applicants are not entitled to compensation for time devoted to pre-employment drug tests because an employment relationship has not yet been formed. The Ninth Circuit held that the “control test” does not apply to job applicants, and that, under California contract law, the applicants had no contract for employment until they passed the pre-hire drug tests. Johnson v. WinCo Foods. READ MORE
Austin’s City Council is considering raising the minimum wage for full-time employees from $15 to $22 an hour.
The proposal, first brought forth by District 2 City Councilwoman Vanessa Fuentes, comes amid a general increase in the cost of living in Austin. That, in turn, has created high vacancy rates for city jobs lost to workers attracted by better pay in the private sector. READ MORE
The core responsibility of designing compensation plans that attract, retain and motivate the right CEO and his/her executive team requires new levels of creativity and flexibility — more customization to each organization’s unique circumstances than ever before.
We’ve all heard the expression “If it’s not broken, don’t fix it.” But even if something isn’t broken, it may not be functioning optimally. This certainly applies to executive compensation plans, which overall have become relatively stagnant. READ MORE
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