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Archive for the ‘Compensation’ Category

Keeping Cool with Hot Jobs

September 25, 2019  |   Compensation,Uncategorized   |     |   Comments Off on Keeping Cool with Hot Jobs

Pricing hot jobs is a hot topic in the compensation arena. Hot jobs typically fit into two categories: •  A new/emerging job typically requiring specialized skills •  An existing job with high demand and low supply of skilled laborers for the job Why is this such an area of concern for HR and Compensation professionals?  There is a lack of accurate and up-to-date compensation survey data for hot jobs. In addition, it’s difficult to stay ahead of ...

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Non-Exempt (NE) Employees and Calculating Overtime (OT) as Part of Incentives, Commission and Bonuses

August 21, 2019  |   Compensation,Uncategorized   |     |   Comments Off on Non-Exempt (NE) Employees and Calculating Overtime (OT) as Part of Incentives, Commission and Bonuses

NE Salaried Classification A company can create a NE salaried employee classification. A NE salaried employee is paid a set salary on a weekly, bi-weekly or semi-monthly pay period. However, if the position is classified as non-exempt (NE), they must be paid OT for all hours above the defined workweek. If a NE employee is hired at a ...

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Merit Pay – Is It Worth It?

July 23, 2019  |   Compensation,Performance Management,Uncategorized   |     |   Comments Off on Merit Pay – Is It Worth It?

Merit pay systems have been around in some form since the early part of the 20th Century. The objectives of a merit pay system are: •  Attract, retain and motivate. •  Develop a method to distribute pay equitably based on performance. •  Use of merit increase guidelines tied in with objective performance measures. Expectancy Theory There is an Expectancy Theory about motivating with pay. The components of this theory are: •  ...

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Assessing the Impact of the Illinois Minimum Wage Change on Your Company

May 21, 2019  |   Compensation,Uncategorized   |     |   Comments Off on Assessing the Impact of the Illinois Minimum Wage Change on Your Company

Effective Dates of the Changes The following table shows the effective dates of the changes to the Illinois minimum wage regulations: Under terms of the bill, the wage would rise $1.00 to $9.25 per hour on January 1, 2020, and another 75¢ on July 1, 2020. Every January 1st thereafter the wage would rise another $1.00 ...

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Sales Compensation Implications in Mergers and Acquisitions

April 23, 2019  |   Compensation,Uncategorized   |     |   Comments Off on Sales Compensation Implications in Mergers and Acquisitions

Mergers and acquisitions (M&A) come with a lot of questions and uncertainty. Two different approaches to manage sales compensation in terms of design and execution, not to mention different CRMs and ERPs...yes, this won’t be easy. It’s a daunting task to think about how you’re going to figure out the best way to manage sales compensation going forward. Do you keep everything the same for the legacy ...

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Sales Compensation Program

March 12, 2019  |   Compensation,Uncategorized   |     |   Comments Off on Sales Compensation Program

It’s important that a Sales Compensation Program has Plan Provisions to guide the administration of the Plan. The following are highlights of what those should be. Goals and Plan Principles It’s important to establish what the primary goals of the Plan are and the principles of the Plan as to how the Plan will be operationalized. For example: the Plan should be fair and equitable to the individuals covered ...

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How Do You Define a Compensation Philosophy?

January 22, 2019  |   Compensation,Uncategorized   |     |   Comments Off on How Do You Define a Compensation Philosophy?

Here are some elements your organization should include in its Compensation Philosophy. Describe what your philosophy is intended to do. For example: • Our Company designs its programs to challenge participants as well as reward them for superior performance for our Company and our stockholders. We believe that our compensation program must: - Align employees’ interests with those of our stockholders by including a portion of their total pay that ...

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Salary Planning for 2019

September 18, 2018  |   Compensation,Uncategorized   |     |   Comments Off on Salary Planning for 2019

Salary increase budgets appear to be finally passing the 3% mark as companies compete for talent in an ever-tightening labor market, according to several salary surveys. Even so, the forecast still calls for relatively modest increases, as companies focus on the overall Employee Value Proposition. The projected total salary budget increase for 2019 is around 3.1% for Non-exempt employees and 3.2% for Exempt salaried and Officers/Executives. In 2018 ...

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Fairness and Equity in Rewards

August 21, 2018  |   Compensation,Uncategorized   |     |   Comments Off on Fairness and Equity in Rewards

Organizations must ensure that rewards programs are rooted in principles of fairness in order to motivate and engage employees from different backgrounds and experiences. WorldatWork and Dow Scott, Ph.D., of Loyola University Chicago, gathered data about organizations’ perceptions of fair rewards and the tools rewards professionals use to create reward programs, policies and structures. An executive summary of their findings is as follows: • Promotional opportunities lead among employee ...

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Key Success Factors to Gaining C-Suite Buy-In for New Sales Compensation Plans

May 30, 2018  |   Compensation,Uncategorized   |     |   Comments Off on Key Success Factors to Gaining C-Suite Buy-In for New Sales Compensation Plans

Gaining C-Suite buy-in to new sales compensation plans is one of the last steps before implementing new plans. However, we would first recommend to “begin with the end in mind,” as Stephen Covey recommends in 7 Habits of Highly Effective People. It’s not just the preparation for that final approval meeting that is important. The approach you take from the very beginning of the sales compensation project is ...

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