Why Having a Compensation Strategy is a Must

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Why Having a Compensation Strategy is a Must

How much should you pay your employees? Why should you have a compensation strategy? And when was the last time you reviewed your strategy? 

Sue Bailey spends a lot of time thinking about all of these questions. As ERC's Senior Consultant for compensation, benefits and everything in between, Bailey has developed a deep foundation in Human Resources that has been honed over the past 30 years.
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4 Compensation Topics You Can't Afford to Overlook

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4 Compensation Topics You Can't Afford to Overlook

When the word "compensation" is brought up in conversation, most people assume it just refers to what a person is paid. However, to the Human Resource community, the word compensation is a much more complex topic.

We spoke with Sue Bailey, ERC’s Senior Consultant, Compensation & Benefits, about what HR professionals should look at when it comes to the top compensation topics.
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Is IT Salary Growth Keeping Pace with Job Demand?

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With much discussion in 2014 over what city will be the next Silicon Valley, it seems as if every job market is trying to get its share of high tech industry investment, and along with the companies, a share of the tech talent needed to make these companies successful.

Locally, the job market is as competitive as ever with a 2014 article from Crain’s Cleveland Business describing several real life scenarios from Northeast Ohio tech companies involving “super crazy demand” for highly specialized skills within IT, recruitment of passive candidates away from gainful employment, and a focus on creating workplace cultures to lure top talent into new companies, just to name a few.

While the subjective influences that may be at play in this seemingly chaotic battle for top tech talent are a bit more amorphous and take time to develop (i.e. creating an appealing brand or organizational culture) there are also key objective facts that can be identified as likely contributors to the competitive and complex nature of the IT job market.
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Raises Remain Steady Among Northeast Ohio Employers

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Post-Recession Pay Adjustments are Stable

With raises over the few years to 2014 holding steady at 3% both locally and nationally, the results of the 2014-2015 ERC Wage & Salary Adjustment Survey came as no surprise - both the actual & projected overall average adjustments in 2014's survey remained at 2.9%. Figure 1 below provides an overview of actual and projected increases in Northeast Ohio since 2004, and more specifically, illustrates this post-recession consistency from 2012-2014 (not to mention the 2.9% increase projected for 2015 in 2014’s survey).

Raises are the Norm

Of the 145 participating organizations that reported data in 2014, only 4% of the total sample indicated that they did not provide raises in 2014 and an equal percentage indicated they also would not be providing raises in 2015. As shown in Figure 2, these figures are right on target with 2013's predictions and have not only fully recovered from the recession, but have actually surpassed pre-recession levels. Ultimately, it seems that although employers are not providing larger increases in terms of percentages, at the very least some pay increase has once again become almost universally expected.
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20 Common HR Metrics and their Formulas

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20 Common HR Metrics and their Formulas

How often does your HR department measure its effectiveness? HR metrics and measurements can be powerful in showing us areas where we could improve and better meet the needs of our organization and its employees. They can also help provide meaningful data to help us make good decisions for our business and department.

There are an endless array of HR metrics you can use spanning payroll, compensation, benefits, engagement, retention, training, and more – all of which can provide incredible insight into how your HR function is performing. But, some measurements are more important than others depending on your organization’s goals, strategy, and the data it can feasibly track, analyze, and use. Four crucial considerations that HR professionals need to consider when using HR metrics include:
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5 Key Types of Executive Compensation

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5 Key Types of Executive Compensation

Executive compensation plans come in a wide variety of shapes and sizes depending on what business objectives the organization is aiming to achieve, the desired complexity of the plans, the demographics of the organization in terms of size, revenue, and industry/sector, as well as the various legal stipulations that apply to executive pay.

However, many of the basic structural elements of executive compensation are more constant, with variations occurring in terms of strategy and implementation. Below, we provide examples of several of these key types of pay based on the results of the 2014 EAA National Executive Compensation Survey.
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Most Employers Offer Pay Incentives, Shift Focus to Short-Term

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In May of 2014, pay incentives, primarily at the uppermost executive levels, have been seeing quite a bit of negative press due to push-back from shareholders over the size of the incentives, concerns over company performance, and even internal scandals and abuses to artificially inflate the incentive amounts distributed.

From Chipotle to Staples, and now the Veteran’s Affairs Department, the power and perils of pay incentives have been front and center. Of course, most organizations are looking at pay incentives at a much more basic level for the vast majority of their employees and with much more well-meaning goals in mind. Two recently published examples of incentive pay research help to shed light on the current landscape of incentive pay including, which incentive plans are being offered, to whom, and based on what metrics. Key findings from both surveys, one at the national level and one at the local level, are outlined below.
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4 Tips for Reading and Analyzing Salary Ranges

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creating a salary structure

A key aspect of any healthy compensation plan is transparency. Due to the potentially charged nature of pay, very few organizations share the individual rates of pay for each employee, but there are certainly other ways to help your employees understand how and why their paychecks are what they are even if you aren’t quite ready to email your payroll out to the whole office.

One way to do this is to help your employees understand how you are creating a salary structure and where they fall within this structure. Clearly each structure will vary from organization to organization, but here are a few of the basic questions that you may want to address in order to increase transparency.
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