We believe that organizations are starting to wake up and understand that positive performance results merit adjustments in pay and not just “butts in seats or foots on floors.” Given that employees are generally paid a market level pay or something more or less depending on the organization’s compensation and benefits philosophy statement, increases in pay should only be given based on what the employee accomplished that truly made a bottom line difference for the company. Differentials in pay means that organizations need to have an effective performance appraisal program in place with proper training provided to all leadership that conduct the evaluations and a solid performance appraisal form.
I read something recently that posed the question; “Are you worth more or less than average?” The context happened to also pose a potential gender aspect as well, but let’s see if I can refrain from getting into too much trouble today. Shouldn’t the question always seek to answer,
“What am I worth?”
So what is the big difference between salary planning and budgeting and compensation management planning? Even more importantly, why should I care? Both of these are very good questions and both can be answered very quickly, making your compensation plan work in a “RESET” economy. This white paper was designed
Let’s face it, in today’s time, with the EEOC and the OFCCP adopting more sophisticated technologies to ensure best practices, organizations need to be able to ensure fair pay by adopting an internal job rating system. In addition, market data is becoming less reliable every day so are you going to use external comparisons alone to determine the cost of your largest expense, compensation?
The Paycheck Fairness Act has already been passed through the U.S. House, now it is lingering in the Senate. The Paycheck Fairness Act has resulted from years of legislation being passed to eliminate the gender gap. However, today women are still being paid approximately 77 cents of every dollar being paid to men. Now is the time to ensure that equal pay is given for equal work. If you do not have a structure in place that can determine comparable worth at your organization, there has never been a better time to look at such tools. When looking for a system, ensure that it can perform the following:
Easy to read analyses for pay equity.
An evaluation system based on
Re Novartis Wage and Hour Litigation
On July 6, 2010, the Second Circuit Court ruled that Novartis Pharmaceuticals Corporation’s pharmaceutical sales representatives did not meet the requirements of the administrative or outside sales exemptions under the Fair Labor Standards Act. Therefore, they were incorrectly classified as exempt employees. The Second Circuit also reversed a decision by the district court for the Southern district of New York and reached a conclusion contrary to that reached by the Third Circuit in the recent Smith v. Johnson &Johnson case.
This story was posted by the Wage and Hour Practice Group on July 12, 2010. Some of the Supporting Facts that led the Second Circuit to this decision for outside sales employees are below:
This information was taken from the Wage and Hour Counsel website. To read more about this case and learn more about the Outside Sales exemption as well as the Administrative exemption, please click on the link below.
|Does Structure Really Hamper Effective Pay Decisions?|
It’s winter and no one will blame you if have thoughts of cruising the Caribbean. Cruising offers an interesting analogy to pay policy structure. All passengers will board the same cruise ship and reach the same planned destination, but no two passengers will have the exact same experience during their several days at sea. Though the framework is the same, a cruise ship offers a flexible experience for its customers.
Flexibility with structure is good! There is a misconception that an adopted pay policy program will limit pay decision flexibility by executives and managers. A common refrain we hear is “I need to have the freedom to reward talent”. But managers must understand that with freedom comes responsibility, to all stakeholders.
Executives need to exercise freedom from within a structure that ensures consistency AND equity. Combined these characteristics promote:
Learn how to exercise freedom with responsibility.
|Complimentary Webinars – |
Critical Concepts – Compliance Primer: Making Sense of the ‘Alphabet” Soup. Thursday Jan. 20th at 10AM (CST)EEOC, OFCCP, Lily Ledbetter, FLSA, ADA, etc. Which ones do you need to understand fully to thrive? There is a continuing emphasis on reducing pay inequity that must be considered strategically as a foundation for any comprehensive compensation policy.Please join us for this complimentary webinar to learn ways to establish a a philosophy that fits with your company’s goals. Start the New year off right by implementing your own strategic compensation philosophy in 2011.
On-line Demo – DBCompensation. Thursday Jan 27th at 10AM (CST)
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