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In the year to April 2024, many employees could be excused for thinking things were brightening up when it came to wages.
The first bit of comfort was that average employee pay grew by a very healthy 4.7%, compared to an inflation rate of 3.4%. Result: real extra money in people’s pockets.
In fact, wage growth so far for 2024 is above average in 47% of job sectors (compared with 2019). READ MORE
Working while attaining a degree can be difficult – especially in the retail and foodservice sectors – but some companies aim to change that. New initiatives at large employers like McDonald’s, Walmart, and Amazon aim to make on-the-job experience count toward college credits, according to NPR. READ MORE
In case you missed it, the IRS has recently updated the CP 261 Notice that is sent to all new S Corporations when their S election has been accepted. In the “Keep in Mind” section, the IRS added the following:
“Payments to shareholder-employees for services rendered: READ MORE
When I was a kid, my father owned a coffee shop. For his 10 or so employees, my Dad had a simple pay philosophy: If he liked someone, he paid them more.
Of course, that’s not how major corporations pay people—in theory, anyway. Most corporations have a detailed compensation policy that explains how everyone, from employees to contractors, should be rewarded. But at the individual manager level, these policies are often overshadowed by personal opinions. Most compensation politics are hard to enforce at scale, and as a result, pay remains a frustrating and deeply emotional issue for workers. And pay discrepancies have led to entrenched inequities, disappointed employees, and calls for improved pay transparency. READ MORE
I'd like to present an innovative framework using a salary-to-present value (PV) ratio that I've found helpful in assessing employee contributions. Collectively, I like to call this the Mudholkar Critical Role Ratio.
This framework and ratio can help encapsulate an employee's current and future value to an organization, providing invaluable insights into their criticality to your company and, thus, the fairness of their compensation. READ MORE
California officials are reportedly considering a further increase to the recently implemented $20 minimum wage for fast-food workers. The California Food Council, which was established by Governor Gavin Newsom, is planning to propose an additional 3.5% raise for 2025 at their upcoming meeting in late July, according to Restaurant Business.
California’s minimum-wage law, which went into effect in April 2024, currently requires that fast-food restaurants with 60 or more locations nationwide increase their workers' pay to $20 an hour, which is $4 higher than the state’s minimum wage. READ MORE
After California implemented a new law boosting the minimum wage for fast-food workers earlier this year, a majority of restaurants increased prices and cut employee hours, according to a recent report from the Employment Policies Institute.
Some are considering expanding outside the state now more than ever. READ MORE
Less than half (47.7%) of job adverts featured salary information in June 2024, the lowest recorded figure since job postings platform Adzuna started tracking the metric in 2016.
This compares to May 2024, when 49.5% of job adverts featured salary information, according to a report published by Adzuna today (29 July). READ MORE
Widely considered the greatest gymnast ever, the American has won it all, which would suggest she makes a pretty penny but how much are we talking about? READ MORE
Taxes can take a big bite out of your take-home pay, so you may need to earn well over six figures to actually take home $100,000 — especially if you live in a state with high taxes.
GOBankingRates determined the salary you would need to take home an annual pay of $100,000 after federal, state and local taxes, plus FICA withholdings for each U.S. state — and these 10 states required the highest salary. READ MORE
When talent acquisition and retention are as competitive as they are in today’s labor market, compensation management plays a critical role. McKinsey has found that inadequate total compensation is one of the top reasons why people leave their jobs. Comprehensive compensation strategies help higher performers remain motivated, engaged and loyal. They also encourage other team members to boost their own performance levels. READ MORE
Over the past two decades, there has been halting progress on narrowing the gender pay gap: As of 2024, women still make about 84 cents for every dollar that men earn, a marginal change from the 80 cents to the dollar that women earned back in 2002. Even as women have made inroads in corporate America and across sectors that were historically dominated by men, pay equity has remained stubbornly out of reach. READ MORE
Historically, formal executive incentive plans were few and far between among not-for-profit healthcare provider (HCP) organizations. Executive compensation packages typically consisted of base salary, benefits, supplemental retirement and maybe a few perquisites. READ MORE
During the Great Resignation, job hoppers landed a median pay increase of more than 20% when they joined a new employer, according to a recent Bank of America report featuring aggregated and anonymized data from the institution. But as of May, that increase has fallen to around 10%, as unemployment has risen to over 4% in the past year.
For talent acquisition leaders, the slowdown in salary increases bodes well for significant savings as they recruit candidates. However, employers may still have to spend big to retain employees. According to a global survey by recruiting solutions provider Hudson RPO, those who are thinking about leaving their current employer say they would reconsider the move for a minimum 30% salary increase. READ MORE
A middle class lifestyle can look different depending on where you are. It may mean owning a house and a car in one city and simply being able to rent a place on your own in another.
In the San Francisco area, an annual income of $250,000 would classify your household as middle earners, based on 2022 Census Bureau American Community Survey data. READ MORE
Former President Trump said in a private meeting recently that, if he’s reelected in November, he would impose an “all tariff policy.” This would result in no income tax for Americans. During his first term, Trump also favored tariffs when it came to foreign affairs, so it’s no surprise that he would continue to propose tariffs during his second term. In the recent private meeting, Trump also said he would continue to use tariffs as a way to negotiate with “bad actors” abroad.
Not having an income tax seems like it would be an automatic win, but what ripple effects would it have on American workers? What would this mean for the economy, specifically the upper middle class? GOBankingRates reached out to political and financial experts to get their take on what the upper middle class would see if there was no income tax. READ MORE
The Consumer Financial Protection Bureau said Thursday that apps that allow workers to access their paychecks in advance, often for a fee, are providing loans and therefore subject to the Truth in Lending Act, a 1968 law that requires lenders disclose all loan costs and fees.
If enacted, the proposed rule would provide clarity to a fast-growing industry known as Earned Wage Access, which has been compared to payday lending. The agency wants borrowers to be able to “easily compare products” and to prevent “race-to-the-bottom business practices,” CFPB Director Rohit Chopra said on a call with reporters. READ MORE
When Seattle’s bigwigs in business and labor were negotiating the city’s $15 minimum wage more than a decade ago, one major question threatened to derail the entire agreement: whether small businesses should be treated differently from large ones.
Facing an angry mayor and the threat of one or more ballot initiatives, the parties involved at the time opted to give small businesses 10 years before fully phasing in the city’s precedent-setting new wage law. READ MORE
One important way to foster diversity, equity and inclusion (DEI) in your organizations is by offering pay transparency. Companies committed to this practice openly share salary ranges, conduct regular pay audits and provide clear communication during salary negotiations.
Below, Forbes Human Resources Council members explain how their organizations create an open and fair work environment through pay transparency. Here's how they've been able to promote equitable pay practices that support DEI standards and build trust among employees and job candidates. READ MORE