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Compensation Pre-Resolution Thoughts

Originally posted on FQHC Compensation Resources from Merces:
The impending New Year brings the opportunity to start anew, always with the assumption that we are moving on to bigger and better things. Resolutions have to be made on an existing solid foundation, however, or they will end up like the unused gym memberships/equipment, failed diets…

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Employee Compensation in the ESOP Company

SUMMARY Employees in an Employee Stock Ownership Plan (ESOP) company have more interest in their company’s compensation program than most everyone else — not just in their own compensation, but in the compensation program overall and how it impacts every other employee.  A well-designed, administered, and communicated employee compensation program can make the difference between […]

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Market Pricing is NOT Job Evaluation

Okay, I’ve had it.  Normally, while known for being opinionated about my profession, and having climbed up on several metaphorical soap boxes in my time, I can take a lot.  Today, not so much.  A few weeks ago, World at Work published a report indicating “market pricing was the most common form of job evaluation.” […]

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The Fascination with Compensation Tools

Last week I had the opportunity to spend several days with a new client working through a job evaluation exercise.  What makes this client somewhat unique is that the CEO is their former VP of Human Resources, which certainly makes explaining compensation principles a lot easier.  What struck me, however, was that this CEO, despite […]

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Compensation in the Family Owned Business

Family-owned businesses provide unique management challenges in a number of ways, not the least of which is the compensation paid to family members.  In this post, I will briefly examine some of the challenges and suggest some relatively simple solutions to what often seem to be insurmountable problems.  Up front it should be noted that […]

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Bad Compensation Data Leads to Bad Decisions

There are competing problems in compensation management to deal with, competing mostly to be the factor that creates the most bad decisions — a misguided direction toward over-reliance on labor market data, and what can best be called a veritable cornucopia of sources of “bad data.”  While the advent of internet data collection and reporting […]

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A Quick Guide for NonProfit Directors – How to Read Your Form 990.

The IRS Form 990 is the tax return filed by not-for-profit organizations, and also a significant document for the disclosure of information concerning the policies and practices of the organization.  Far too often, non-profit Boards do not take the opportunity to review this document — not surprising, as it can get to be a very […]

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Compensation Literature with Questionable Logic

Like any other field of study, the conclusions drawn by authors suggesting courses of action to be taken by their readers require that the underlying facts and logic be sound.  It is clear from reading a number of recent articles that the authors either do not completely grasp underlying compensation theory, or that they have […]

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Compensation Waste 101 – When Raising Your Minimum Wage Will Lower Your Costs

Increasing the minimum wage does not improve the skills and contributions of those who currently earn the minimum wage – but increasing an organization’s minimum wage may be essential to achieving needed levels of productivity and performance.   Organizations of all types need to understand, from a business perspective, why being cheap is rarely the right […]

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How do we take the economy into account… again?

Nearly ever week I get asked the question “how should we take the economy into account when evaluating our pay structure?”  The fact that this question was actually asked means that there is a fundamental lack of understanding about the way pay structures are designed, assuming of course that the structure in question was designed […]

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