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New Compensation Metrics – A 2017 Resolution

The compensation profession suffers from a severe lack of effective metrics.  To be frank, the typical measures used in describing compensation program success really have nothing to do with success.  This year, try something that makes more sense — focus on metrics that actually tell you if your compensation program is achieving its mission. Traditional […]

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Stop Gender Pay Inequity – Repeal (Part of) the Equal Pay Act

Well not all of it, of course.  Most of it, along with the other anti-discrimination laws, are crucial to fighting intentional discrimination.  However, one particularly nagging part of the Equal Pay Act actually enshrines “unintentional” discrimination.  It is all in 29 USC Section 206(d)1, a sentence that starts out really well by banning discrimination, but […]

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How Your Market-Based Pay Program Perpetuates Gender Pay Inequity

Some years ago, the compensation profession turned its back on the sensible pay programs that had been growing and evolving throughout the business world, and allowed itself to fall prey to vendors (primarily market pay data vendors, not surprisingly) who told them that “market-based” pay programs were the answer to all their needs.  In doing […]

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How You Perpetuate Gender Pay Inequity With Your Merit Program

Yes, you heard me correctly, your “bona fide” merit program perpetuates gender pay inequity.   It is not hard to figure out… if women take time out from the workforce, they will have fewer years of your 3% average merit increases, and given enough time, there will be a gap — even if you started […]

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HR Metrics – Ditch the “Compa-Ratio”

The “compa-ratio” is such a silly and deceptive “metric” that even not knowing much at 25 years old (longer ago than I care to admit) I could not bring myself to use it in a client report. HR practitioners, and the executives and managers they support, need metrics that really mean something, and for decades, […]

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Incentives Don’t Work, Yet We Keep Using Them

For those who haven’t read Daniel Pink’s “Drive,” the best-selling book on what really motivates us today, make the time to do so, because it will illustrate to you quite clearly why it is time to stop wasting your precious time and resources on incentive programs that don’t work.  In fact, I’ll give you a challenge […]

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2016 Resolution #8 – Ensure Base Pay is Predictable

Resolution #8 – Examine your base pay program from the perspective of employees, and ask yourself whether they can “predict” changes to their pay. For the vast majority of jobs, hourly wages or annual salaries make up most of total cash compensation.  While incentive compensation may be a motivator for some, base pay pays the […]

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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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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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