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ChatGPT, the AI technology that's set off an artificial intelligence gold rush, is not yet ready to determine that companies are extending the right salaries to attract and retain talent.
We know this because we tested it. When asked "What salary should I offer a software engineer in the U.S. with five years experience?" ChatGPT came back with $100,000 to $120,000 a year, and maybe more than $150,000 a year in high-cost cities such as San Francisco, New York, and Seattle. READ MORE
Ever wonder what’s driving the pay equity strategies of other companies?
Well, Felicia Cummings and Nicole Corona, HR leaders with Health Care Services Corp., wanted to know and informally polled attendees at their WorldatWork conference session this week, Pay Equity: Taking on the Elephant in the Room. READ MORE
Planned Parenthood executives are among the highest-paid in the U.S. in the not-for-profit sector, surpassing the average salary for nonprofit CEOs, according to a new report.
American Life League's STOPP International, an organization dedicated to serving as a watchdog on Planned Parenthood, recently released a report titled "The STOPP International 2023 Report on Planned Parenthood CEO Compensation," which offers analysis of how much money executives affiliated with the nonprofit are raking in. READ MORE
What drives companies to offer equity compensation? We've heard the speech ... it fosters employee motivation and performance, it helps with employee retention, it's an alignment of interests, it increases employee loyalty, etc. While all these are true, one big reason that gets less coverage is taxes. Equity compensation has a direct effect on employees' financial planning, which is why it's important that employees understand not only the tax implications but also how to exercise their stock and how to evaluate their options before accepting. READ MORE
Two recent court decisions bring into focus two seldom-asked questions about the reasonable compensation requirement under ERISA. When must an ERISA plan’s service provider compensation be reasonable? And why shouldn’t a plan fiduciary be able to receive reasonable compensation from the plan even if the fiduciary had a hand in determining the amount of that compensation? The reasoning and holdings in these cases, if followed by other courts, could fundamentally alter the familiar rules on reasonable compensation. READ MORE
In the 21st century, many people in the workforce are asking themselves how far their money will really go. A $100,000 annual salary may have meant a lot more even just 10 years ago than it does in today’s economy. READ MORE
What you post shows what you make.
Researchers out of London’s Queen Mary University were able to successfully analyze 2.6 million social media posts and accurately assess the financial background of those who shared the messages. READ MORE
Salary transparency, an issue that has taken political and legal strides in the workplace, is now making its way into conversations between co-workers. The frequency of these conversations has risen alongside the increase in negotiations in the hiring process, and laws mandating companies provide salary ranges in new job ads.
The efficacy of these salary transparency conversations is up for debate, but according to a survey from invoicing solutions provider Skynova of just over 1,000 full-time employees, these interactions are taking place at a presumably unprecedented pace. Seventy percent of surveyed employees said they have taken part in conversations in which they shared how much money they made with their co-workers. READ MORE
Eight states have adopted pay transparency laws, including California and New York, with several more considering legislation. Much of the buzz around these laws has been regarding large corporations and their employees, but how do small businesses fit into the picture? Here’s what you need to know. READ MORE
Central bank officials around the world have said taming inflation is their top priority, but rising prices have turned out to be stickier than originally expected.
The U.S. economy saw a pickup in inflation that began in 2021 amid pandemic-induced supply chain issues. But the current inflation story seems to be more about services than demand constraints. READ MORE
Temporary assignments, or the assignment of duties to an employee outside their regular scope on a short-term basis, often come with an increase in direct compensation.
But how should that amount be determined? READ MORE
The study results come as new laws requiring companies to disclose salaries when hiring job candidates have been enacted across many states. As of Jan. 1, California and Washington became the latest to require pay ranges to be disclosed with job postings, CFO Dive previously reported. The new regulations and the resulting corporate policies are part of a broader push for pay equity and it is also shifting the balance of power in salary negotiations. READ MORE
When applying for a job, there are lots of variables that impact your decision-making: the location, flexible working, and day-to-day responsibilities. But ultimately, salary is always one of the biggest deciding factors.
Too often, employers will dictate lower salaries in a bid to save money. This is one likely reason why employee turnover is so high today. According to Pew, 63% of workers who quit their jobs do so because of low pay. READ MORE
As more cities and states implement salary transparency laws, it's falling on managers to deal with a barrage of questions, concerns and frustrations this new knowledge can reveal.
Currently, seven states as well as individual cities across the U.S. have salary transparency laws in place that require an organization to include the minimum and maximum pay ranges in job postings. But while 92% of employees are in favor of transparency laws, 63% say these policies will cause problems among coworkers, and 5% would quit if they found out a coworker made more than them, according to data from Resume Builder. READ MORE
Apple Inc and Alphabet Inc offer some of the highest salaries in Silicon Valley.
This allows the companies to attract some of the best talent and, in turn, deliver some of the most cutting-edge technology advancements every year. READ MORE
U.S. Sen. Mark R. Warner (D-VA) has joined a group of colleagues to introduce legislation that would authorize efforts to recoup executive pay when a bank failure occurs.
Bill proponents noted the Failed Bank Executives Clawback Act would, among other provisions, require the Federal Deposit Insurance Corporation (FDIC) to regain up to three years of compensation received by bank executives, board members, controlling shareholders and other key decision makers. READ MORE
As virtue signals go, environmental, social and governance (ESG) initiatives are a popular and noisy bandwagon that companies are jumping aboard to show how much their brands care about things that often have little or nothing to do with their bottom-line business success.
An increasing number of companies are even taking the window dressing of doing good to an absurd and sometimes reckless level by tying executive compensation to leadership’s performance on these feel-good metrics. More than 70 per cent of Fortune 500 companies now have baked – or are considering baking – some ESG elements into their executive-compensation formulas. READ MORE
Addressing the needs of a range of stakeholders has long been a part of managing a company, though explicit “stakeholder capitalism” has grown in influence in recent years following Business Roundtable’s updates to “The Purpose of the Corporation” in 2019. While the broader stakeholder focus is growing, shareholder value creation is still the primary company objective, implying that financial and shareholder value metrics should remain the most prominent incentive tools for executive pay programs. With the ongoing market evolution, many companies are more actively contemplating broader stakeholders and considering direct adoption of ESG metrics in pay programs. In these cases, many enduring principles of executive compensation should be applied to ESG metrics, including considering the alignment to company strategy and values and the incentive value that a broader view of performance can provide. READ MORE
Last year was a mixed bag pay-wise for the women who run companies in the S&P 500 -- compensation increased for more than half of them, but the median pay package fell 6%.
Of the 343 CEOs in the compensation survey of S&P 500 companies done by the AP and Equilar, only 20 were women. Because they are a small group, changes in pay for only a few can easily skew the overall figures. READ MORE
Compensation is a critical element of employee engagement, retention, and overall satisfaction. Empowering managers and employees with the right knowledge, visibility, and tools to understand, and have meaningful conversations about, compensation is crucial. READ MORE