Archive for the ‘Uncategorized’ Category
Keeping Cool with Hot Jobs (Part 2)
Keeping on top of the changing job market is key for employers. Accurately assessing when a job is hot and when it’s cooling down is critical to determining appropriate compensation. As discussed in our previous post, when jobs are hot, it’s important for employers to up their compensation game, making sure that their total rewards offerings are on par with, if not surpassing, the competition. Things can change significantly when jobs cool down. Job postings for ...
Read More →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 ...
Read More →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 ...
Read More →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: • ...
Read More →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 ...
Read More →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 ...
Read More →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 ...
Read More →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 ...
Read More →Is it Time to Introduce Profit Margin in Your Sales Incentive Plan?
The answer to this question is unique to every organization. A sales incentive plan based on profitability is not the solution for all companies and needs to be supported by the overall corporate strategy. Here are a few questions to consider as you further explore whether it’s the right time to introduce Margin as a metric into your sales incentive plan: What is your organization’s strategy? - If you introduce profitability ...
Read More →Independent Contractors – The Wave of the Future
Forecasts estimate that independent contractors will comprise half of the U.S workforce within the next decade. Historically, companies used independent contractors on an as-needed basis. Most companies have given little thought around how to effectively attract and retain the best independent contractor (IC) talent, with the only focus being legal compliance with DOL legislation relating to ICs. With the forecasted large increase in the usage of independent contractor ...
Read More →
