This newly published 16-page paper provides insights into how the role of the Compensation Committee continues to expand beyond its traditional charter. The ideas and learnings are based on interviews with 24 Compensation Chairs, CHROs, and Compensation Consultants across multiple sectors. The paper begins by outlining various factors driving the evolution of the Compensation Committee’s charter, such …
Pay transparency—the degree to which an organization openly and proactively shares information about salaries—continues to be a topic of interest within many organizations. And as I mentioned in a previous post about a Payscale paper, How Fair Pay Perception and Pay Transparency Combat Turnover, one factor drawing attention to pay transparency is recently passed laws in …
Around this time last year, I conducted a poll of this newsletter’s readers on the topic of location-based pay. Given the rise of remote work during that time, I asked readers: If an employee relocates to a geographic location with a lower cost of living, should their salary be reduced accordingly? Based on 117 responses, 42% said that it would depend …
This article outlines how the demand for workers has led some organizations to forgo annual pay raises and adopt more frequent pay reviews. One example is CoorsTek Inc., a maker of industrial ceramics, who started doing quarterly pay reviews last year, primarily to ensure it could hire and retain workers for critical and hard-to-fill manufacturing roles. While …
Although workers increasingly value aspects of the non-financial components of a firms’ employee value proposition, organizations realize that compensation is still important to attracting, engaging, and retaining talent. This 61-page report provides data and insights on compensation management practices ranging from base pay increases, variable pay and benefits, remote work and geographic pay, and pay …
Pay transparency—the degree to which an organization openly and proactively shares information about salaries—is a hot topic for many organizations. One factor drawing attention to this topic is increases in legislation. Ten states and cities (e.g., California, Colorado, New York City) have already passed laws that require employers to state their salary ranges, either in job …
With remote work becoming more common, organizations are increasingly determining how geography might affect the compensation of remote workers. I mentioned in a previous post how firms have taken different stances on this topic: while Facebook, Twitter, Microsoft, and Google will base pay on geographic location, smaller companies, including Reddit and Zillow, have shifted to location-agnostic pay models. Zillow’s CHRO, Dan Spaulding, wrote “when …
One key question firms are asking as of late is: should employees that move to lower cost-of-living areas face a salary adjustment to align with labor costs at their new location? This practice is often referred to as “geographic differential” ― a percentage variation that adjusts pay for the cost of labor between locations. And while this practice isn’t …
Many employers use location-based compensation structures to determine pay for a job. However, a segment of workers living in higher cost-of-living areas moved to lower-cost-of-living regions because of being able to work remotely during the pandemic. This trend has forced firms to answer the question: Should workers who moved to these lower cost-of-living areas face a …
Last month, I posted how Google developed a new “Work Location Tool” to assist employees in calculating how their compensation might decrease if they relocate or work remotely. This more recent article notes that since June, roughly 10,000 of the company’s over 135,000 workers have asked for permission to work remotely on a full-time basis or relocate to a …
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