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Variable Pay

Dear Workforce How Should We Divvy Up a $10,000 Project Bonus

July 8, 2005
We have salespeople who earn two kinds of commission: one on the sale of products and services, and another for subscription services billed monthly. What should we do when a salesperson is terminated involuntarily or the company is sold/acquired? Is there a standard practice regarding how commission is paid?
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Dear Workforce How Do We Move Away from Across-the-Board Salary Increases and Instead Tie Them Back to Performance

June 30, 2005
As a nonprofit, we live and die by our budget. Recently, after freezing wages for two straight years, we managed to squeeze out a 3 percent increase for all employees. The fact that many people have waited so long for an increase made it difficult to slice and dice the relatively small amount of allocated dollars. Still, some employees are grumbling that flat increases aren’t fair. How do we get away from across-the-board increases and tie them back to performance, especially when dollars are scarce?
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Deflating Compensation

October 1, 2004
If your salary-increase budget for 2005 is much higher than 3 percent, you're probably overspending. New survey data indicate that increases at large companies will average 3.5 percent next year, marking the fourth consecutive year of increases below the 4 percent average that characterized budgets before the economic downturn. What's behind the trend? Soft labor markets that will continue into 2005 and well beyond, increasing the need for annual pay increases designed for optimal hiring and retention. "There's no war for talent," says Mercer Human Resource Consulting's Steven Gross.
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Good-Bye to the Golden Age of Options

September 3, 2004
Rules from the Financial Accounting Standards Board won't take effect until 2005 or later. But many companies are already refashioning their incentive plans, curbing the amounts of their option grants, limiting who is eligible, or both.
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