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How Are Organizations Utilizing Retiring Baby Boomers’ Compensation?

How Are Organizations Utilizing Retiring Baby Boomers’ Compensation?

One of our public clients has experienced 17% turnover during the first eight months of 2018. The average tenure of the employees leaving this organization is almost 5.5 years and a measurable group of these employees are retiring baby boomers.

The average pay variance between the new hires and terminated employees for the above mentioned client is 16.7% or about $6,365 dollars per employee. With the impact of daily baby boomer retirements, we estimate that organizations will have between 10% and 25% in total compensation dollars to reallocate within their annual employee compensation budgets.

For small to large organizations, the amount of freed-up dollars associated with baby boomer terminations due to retirements can be significant and useful for taking care of high priority compensation needs. Some of these needs will include new hire replacements, funding variable pay incentive plans, addressing pay compression and pay inequity issues, bonus pay for top performers and a variety of other pay initiatives.

For organizations with remaining baby boomers that will retire in the next three to five years, how will you plan to use their 4th quartile base pay salaries to fund other compensation needs?

Learn more by visiting www.dbsquared.com or request a free consultation by visiting https://www.dbsquared.com/consultation-request-ty/.

Useful Job Descriptions Pay Dividends

Alan G. Crone, Attorney with Crone Law Firm, PLC wrote an article in the HR Professionals March issue titled, “The Business Case for Compliance”.  Mr. Crone, with over 25 years of employment law, mentions in his article that he is often asked what lessons he has learned that HR Professionals can apply to lessen or mitigate employment lawsuit and litigation expenses.

Alan recognizes that employment law is complicated, ever-changing and hard to manage with employee and employer value differences.  He states in the article, “There are no simple solutions, however I do suggest three simple strategies as a great start, that if you follow them you will reduce the number of employment related claims, complaints and lawsuits:

  1. Draft and maintain hyper-accurate job descriptions;
  2. Communicate clearly the company’s expectation for employees and confront them when they do not live up to those expectations; and ,
  3. Refocus compliance efforts as training rather than as discipline.”

This article continues with Mr. Crone going into more detail on how these simple strategies can be applied with good common business sense and thorough application.  As human resources professionals for our respective employers, what are the dividends we can expect by implementing a useful job descriptions strategy as noted in Alan Crone’s article.

  • More informed candidates
  • Improved staffing and compensation decisions
  • Accurate and current job descriptions
  • Positive impact in management decisions
  • Greater defensibility
  • Compliance with ADA – reasonable accommodations
  • Compliance with FLSA – Exempt / Non-exempt (duties and responsibilities)

Mr. Crone completes the Job Descriptions section of his article with the following statement, “Top-notch job descriptions will create operational efficiencies, less lawsuits, better hiring decisions, more focused training and discipline, and less turnover.”

As human resources and compensation consultants and software providers, we support Mr. Crone’s advocacy for comprehensive, consistent and compliant job descriptions.  The time spent with bringing dated job descriptions to a current and accurate status will pay dividends for internal and external stakeholders.

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