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2016 Resolution #7 – Link Performance Management Directly to the Job

Resolution #7 – Link performance management programs directly to the expectations of the job as outlined in effective job descriptions. We’ve mentioned this before, but it bears repeating —  most people don’t like performance appraisals.  You can take your pick of these or many other reasons: It takes too long Parts of the forms aren’t […]

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2016 Resolution #6 – Pay People What they are Worth

Resolution #6 – Forget last year, general increases and the “what have you done for me lately merit increase” approach and refocus individual compensation adjustments on what people should be paid now based on the job and their performance. Back in the old days, there was something called the “free market.”  People were paid for […]

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2016 Resolution #5 – Move From General to Individual Pay Management

Resolution #5 – Eliminate “across the board adjustments” and move to individual adjustments. Let’s just lay this out on the table – “across the board adjustments,” “general increases,” and “cost-of-living adjustments,” in the absence of a way of compensating for employee growth and performance – are simply a very bad idea.  While this may not […]

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2016 Resolution #4 – Reconsider Your Minimum Wage

Resolution #4 – Reconsider your organization’s “minimum wage” in light of all of the costs associated with being cheap The December 14, 2015 issue of Crain’s Detroit Business featured a series of insightful articles on the problem of Alices written by Lindsay VanHulle.  No, not employees named Alice, but ALICE, an acronym for “asset-limited, income-constrained, but […]

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Compensation Models, Algorithms and Projections, Oh My!

In preparation for our “2016 Compensation Resolutions #3” post on the need to rely on internal equity planning over the vagaries of using market data in establishing compensation programs, I realized that my “preface” was over 1,600 words, and that my social media manager was going to have a stroke.  That led to three posts […]

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2016 Resolution #3 – Increase Emphasis on Internal Equity

Resolution #3 – Reduce your reliance on market data in favor of an effective internal equity program. Let’s face it.  The human resources and employee compensation profession has lost its focus, as well as much of its credibility, in favor of the lure of gimmicks and black box internet technologies.  Over the last two years, […]

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Take Care with Recruiter Data in Compensation Planning

Just a few weeks back, one of our clients called us in, well, not quite a panic, but certainly with a bit of concern.  The subject?  The cost of hiring new accounting graduates was expected to increase nearly 5% for the spring of 2016. “Were we able to confirm this?” For accounting firms, this is […]

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2016 Resolution #2 – Take Compensation Off the Table

Resolution #2 – Build a program that will take compensation off the table — effectively making it a non-issue rather than a bone of contention. In his best-selling business book “Drive,” Daniel Pink makes a compelling argument that it is essential to “take compensation off the table.”  That means that you need a compensation program […]

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2016 Resolution #1 – Educate Key Players on Compensation

Resolution #1 for 2016 – Educate all of the key players in your organization about how employee compensation works, and how it should be used to improve organizational performance. Moving to a more effective compensation program will improve performance throughout the organization, but Human Resources may be challenged in showing how the rest of the […]

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Compensation Program Resolutions for 2016

Every year we provide our clients, colleagues and the world at large with our recommended resolutions for improving the effectiveness of their compensation programs.  This year the theme of our resolutions is simple: Lift your compensation program out of the morass of ineffective and destructive methods that continue to plague the human resources profession and the […]

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