Sue Bailey is a Senior Consultant at ERC with more than 25 years experience in the HR, compensation, and benefits field. We sat down with Bailey to answer a few questions about benefits and compensation in the workplace.
How has the Affordable Care Act impacted benefits and compensation?
The Affordable Care Act, or Obama Care, is having a significant effect on benefits and compensation in 2014. “Specifically, it will have a large impact on employer’s benefits packages in the future. A lot will depend on the medical and insurance companies, and consumers,” says Bailey.
What does the outlook for pay increases look like for 2014?
Turnover at companies remain low. The pay increases in 2014 are predicted to be between 2.9-3.0%.
What are some substantial compensation strategies following 2013?
There has been an increase in the level of communication by employers regarding compensation.
Many employers are increasing communication around the following:
- Compensation strategies
- Salary ranges
- Market compensation
Are there any executive compensation pay requirements happening that employers should be aware of in 2014?
Executive pay is an area of high scrutiny and will continue to be in 2014.
“The ‘Say on Pay’ disclosure requirements, which require companies to disclose very detailed information about executive pay and CEO pay, continues to be a requirement for corporations,” says Bailey.
As a result, companies are putting more time into their key stakeholders, examining the metrics in their pay programs, and reassessing their executive pay programs.
With the modest pay increase projection in 2014, what response is expected from employers?
Most employers are still planning to pay salary increases, but very few will actually freeze pay.
“Because that projection is so low, the degree of differentiation in pay increases is also going to be very low,” says Bailey.