If you haven’t yet held your 2017 planning meetings, they’re likely right around the corner. Instead of just taking giant spreadsheets into the meeting, try to be proactive and answer some of the difficult salary budget questions before you walk in the door. It’s important to have a good grip on how you’re going to allocate your salary budgets and a concrete plan to communicate this information to employees. After all, the 2016 Salary.com Compensation Outlook Survey showed that 85% of organizations whose employees understand their compensation philosophy also report a high level of employee engagement.
It’s November, and along with setting aside time to be spent with family and friends over the holidays, it’s also time to look toward the New Year. For many of us, that means establishing resolutions and setting goals that we hope to accomplish in 2017. For companies eager to maintain a competitive position within their respective industries, planning for 2017 likely includes establishing a solid salary budget for the upcoming compensation cycle. After all, ensuring that compensation is allocated strategically can have a tremendous effect on your ability to attract top talent and retain high performers.
It’s hard to believe, but 2017 is right around the corner. And now that we’re in the fourth quarter of 2016, many companies are focused on budgeting for the year ahead. Planning for the distribution of next year’s compensation budgets can be particularly difficult, and isn’t as simple as just adding 3% to the previous year. Without a solid compensation strategy, it will be difficult to retain current staff and attract new, top-tier candidates.
Excel has long been the go-to platform for managing compensation. After all, it’s free, available on almost every computer, and familiar to most people. It’s even how most of us comp professionals learn the basics of market pricing. But just because you learn to ride a bike with training wheels doesn’t mean you need to keep doing so. At a time when compensation is highly visible and vital to how businesses attract and retain their talent, companies must move beyond the limited, error-prone capabilities of Excel and adopt the strategies and solutions that deliver a modern, more efficient approach.
As the workforce evolves, the world of HR continues to evolve along with it. New challenges, like the emergence of workforce diversity, devices that enable mobile work, and fair pay legislation are affecting companies of all sizes and industries. These challenges have made it more difficult than ever to engage and retain top performers.
Since its introduction in 1938, the Fair Labor Standards Act, or FLSA, has had a significant impact on the way we work. This landmark legislation established many of the things we take for granted today – a national minimum wage, the 40-hour work week, guaranteed overtime pay for certain jobs and child labor prohibition. And as the needs of the workforce continue to change, the FLSA has evolved in turn, amending regulations to protect today’s workers and impacting the way organizations manage, schedule, deploy and compensate employees.
Interviews are an essential part of the hiring process. They give employers the chance to have far-reaching, insightful conversations with their job candidates about what they can bring to the company. In addition to talking about an individual’s education, experience, skills and ideas, the conversation will often turn to salary – and the interviewer must be prepared to have a meaningful, two-way conversation about the topic.
Determining appropriate salary for your employees continues to be one of the most challenging aspects of compensation – a field already characterized by numerous complexities – especially during times of perpetual 3 percent increase budgets. But one of the most common challenges is salary compression, or when new hires or newly promoted employees are paid at levels similar to or higher than what your current employees in the same role make. Needless to say, this can be perceived as unfair by those experienced workers who see new hires – often recent college grads – or newly promoted employees taking home a bigger paycheck.
The days are getting longer, the weather is warmer and the flowers are blooming. This can only mean one thing; Spring is here. And while many use this opportunity to do a spring cleaning to get their house and yards in order, it’s also the perfect time to refresh your job search efforts. So, if you are having trouble finding that next great opportunity, consider the following tips to spruce up your resume, dig for new job sources and get your hiring prospects in full bloom: