How employers are rethinking salary, benefits as turnover continues

Although rising inflation and the changing economic climate are causing some employees to worry about job security, employers for the most part are still experiencing turnover and sweetening the compensation and benefits pot to hang onto their workers.

A new survey of more than 4,000 organizations from consulting firm Gallagher finds that employers are turning to pay increases as well as more diverse benefits to capture the interest of current and potential workers. READ MORE

How to Answer, ‘What’s Your Expected Salary?

When you’re asked, “What is your expected salary?” it’s not a trick question—it’s a real one. And the answer to that question depends on who you are, what you do, and how much money you want to make.

Do you know how to answer the question “what is your expected salary?” If you’re like most people, you’ll probably say something along the lines of “I don’t know.” READ MORE

OFCCP Revises Recent Pay Equity Directive

On August 17, 2022, the U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) issued a revised Directive 2022-01, “Advancing Pay Equity Through Compensation Analysis,” in which the agency seeks to address concerns implicated by Directive 2022-01, issued only five months earlier, regarding the extent to which OFCCP would respect the attorney-client privilege when auditing contractors’ compliance with their obligation to annually perform compensation analysis. READ MORE

How to Help Employees Understand Their Total Compensation

With an estimated 37.4 million people expected to quit their jobs this year according to Gartner, it’s no wonder that turnover tops the list of concerns for business owners.

Naturally, many employers are curious about what will make employees stay. Some job jumpers want a higher salary, others want work-from-home flexibility and better benefits. But before the list of creative solutions grows any longer it’s also important for companies to take inventory of what is already being offered in addition to salary. One way to show employees how much they are valued in your organization is with a total compensation statement. READ MORE

You may soon be asked to take a pay cut to keep working from home

Many workers enjoyed a better quality of life plus savings on commuting, office wardrobe and other expenses. Companies boosted productivity and lowered costs.

Now as remote work looks likely to survive in some form for the foreseeable future, a battle is starting to brew over who should pocket those savings, with some employers arguing that working from home is a benefit that should be offset by lower salaries. READ MORE

Organizations Are Offering Higher Base Pay for Sales Roles

Amid a tight labor market, sales talent is an especially valuable asset, and organizations are implementing several compensation measures to attract and retain them.  

WorldatWork’s 2022 “Sales Compensation Programs & Practices Survey” revealed that 50% of organizations have offered higher base pay for sales roles and 39% have increased incentive opportunities, with 22% of organizations doing both. READ MORE

Battle over proxy advisers reignites after SEC unwinds Trump-era rules

A fight over the powerful firms that advise shareholders on corporate governance issues is escalating in Washington.

Some of the country’s largest business groups are challenging the Securities and Exchange Commission’s decision last month to undo Trump-era restrictions on the proxy advisory firms that make recommendations to investors on how to vote on often contentious proposals put up at annual corporate meetings. READ MORE

OFCCP Revises Compensation Analysis Directive But Leaves Questions About Documentation Created Under Attorney-Client Privilege

On August 18, 2022, the Office of Federal Contract Compliance Programs (OFCCP) issued a revised version of its Directive 2022-01 - Advancing Pay Equity Through Compensation Analysis, which was originally issued on March 15, 2022. Although the stated purpose of the original Directive was to “provide guidance on how OFCCP will evaluate federal contractors’ compliance with compensation analysis obligations and clarify OFCCP’s authority to access and review documentation of compensation analyses conducted pursuant to 41 CFR 60-2.17(b)(3),” the Directive was controversial as OFCCP appeared to be claiming a right to compel contractors to disclose their pay equity analyses even when properly protected by the attorney-client privilege. READ MORE

Compensation, scrutiny and greenwashing risks: RBC GAM on tying ESG to executive pay

Derek Butcher is part of the nine-strong corporate governance and responsible investment team at RBC Global Asset Management (RBC GAM), which manages more than $408 bn in assets (as of June 30, 2022). Here he talks to IR Magazine about the nuances of tying EGS metrics – some of which can be difficult to quantify and are seen as less rigorous – to executive pay. READ MORE