Our company has two worksites: one in a rural area of the state and one in a major metropolitan area. When we move staff from the rural area to the metro area, we use a cost-of-living ratio to determine changes in pay. This results in a 25 percent boost in earning power--very costly to our organization. What formulas do other companies with geographic diversity use?
We are training our first "black belts" in Six Sigma and want to know how to compensate them. Should we give an increase in base pay based on getting certified in Six Sigma processes, or pay them a percentage bonus based on savings per project? Or both?
Our board has requested that human resources perform a strategic review of our benefit and compensation plan this year. Never before has this been done by our company. What should be our starting point?
Our organization discontinued merit increases about three years ago. The board of directors, however, has mandated across-the-board increases of 2 percent to 3 percent for all staff who are not in probationary status. But after three years of these increases, even people who were hired fairly recently have gotten pretty far away from the salary-grade minimums.
In addition, we have several employees who have reached their salary-grade maximum during the past three years. We usually award a bonus rather than further increases for this group. Would it be equitable to raise the minimum starting salary and maximums each year by one-half of the across-the-board increase?
Our company has put a new five-band salary structure in place, but it's already causing worries for our executives. We have some longtime employees–those with at least 15 years' experience–who are underpaid, so the plan is to boost their pay to competitive market levels. As we do so, however, we're faced with hiring new employees for those same jobs at the higher salaries–even though they don't have the years of experience with us. Short of redoing the salary structure again, what are our options for handling this thorny situation?Read More
How do we manage a disparity in pay levels? We are raising pay rates for employees to be more in line with our competitors. However, this hasn’t eased our recruiting difficulties very much. In addition, management is considering raising pay yet again for new recruits, but we are understandably concerned that such a move would make pay for new workers nearly equal to employees with two to three years of experience. This would also affect the pay of people with even longer tenure. Obviously, whatever we decide will affect both our retention of high performers and our recruitment of top talent. We don’t want to get hung up on this issue, but feel caught in the middle. Is there a way out that satisfies all sides?
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