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?
Performance measurement and process improvement must go hand in hand for any organization intent upon creating competitive advantage.Read More
The food and facilities giant improves hiring speed and quality by building a “recruitment culture” that makes talent scouts of all of its employees.Read More
To ensure it retains the cream of its call center crop, the company keeps key people engaged with a plan that offers career development and flexibility.Read More
Pay fairly, equitably, and competitively to get the behaviors critical to company success.Read More
A Michael Moore-style demand for a meeting with executives is rejected as an Orthodox social-justice organization seeks unpaid overtime for employees of a kosher cheese-maker.Read More
The SEC plans to propose and finalize implementation rules for the Dodd-Frank act's provision on executive pay and corporate performance sometime between August and December, although there is no indication they would take effect for the 2012 proxy season.Read More