Payscale’s Post

We've all seen it this year: the ratchetting of salary offers to attract and retain talent during the Great Resignation💵, runaway inflation📈, increased scrutiny on pay equity👀, and recent legislation around pay transparency⚖️. These are just some of the major factors that have made effective compensation management strategy one of the most important initiatives for organizations of all sizes to implement in 2024. But where to start? What about all the challenges facing the market? And how will it impact your organization? Join a panel of compensation leaders from Mckinstry, Expedia Group, Stitch Fix, and Payscale on Thursday, July 18th at 9 AM PST/12 PM EST as they explore how these factors have led to the development of new and innovative compensation strategies. Specifically, we will cover best practices and insights to help you: - Respond to rising market challenges - Navigate change within your organization - Adapt to evolving compensation expectations This event is accredited by HRCI and SHRM 🙂 RSVP to join us for this important webinar today: https://lnkd.in/gMHXV8va

Keeping with our theme of #employeeretention, today let's talk about Competitive Compensation Programs. Although compensation is not the most significant factor in why people choose to leave their employer, it is a consideration. And with minimum wages rising to heights we've never seen and entry-level positions starting at $17, $18, $19 an hour, establishing a Compensation Program could not be more critical. When developing your Comp Program, you should consider the following: 1. Conduct market studies to know the average pay nationally and in your geographic area for positions you employ. 2. Establish pay ranges for every position you have. Open pay ranges are best for giving you flexibility in individual pay (just keep it equitable). Pay ranges will help ensure you stay within the market wage and give you a better sense of what is reasonable for new employee negotiations. They also give employees a sense of reality for their earning potential. 3. Policies and processes guide decision-making to ensure compliance with pay equity laws, help supervisors answer questions regarding pay practices, and educate employees on when and how pay increases may be earned. 4. Except in cases of Cost of Living Adjustments, pay raises should be linked to performance, differentiating high performers and rewarding them accordingly. 5. As the cost of living rises, base wages should as well. If not, employees' net wages are reduced as they must pay out more for life-essential products and services. 6. On-demand pay is a great way to help employees feel financially well. Many employees seek higher wages because they live paycheck to paycheck, in a vicious cycle of payday advances, fees, and interest. On-demand pay allows employees to access what they've earned before payday for the same fee as an ATM. This will enable employees to save on costs and interest, access income when needed, and even begin to save, resulting in employees feeling more financially well and less dependent on earning higher hourly wages. To learn more about Comp Programs, schedule a consult with Hi-Wire HR today: https://lnkd.in/gGqiM2Wp #compensation #hrleaders #hr #hrconsulting #consultant #smallbusiness #smallbusinessowner #business #businessowner #smallbusinesstips #employees #humanresources #humanresourcesmanagement #hrmanagement #independentpharmacy #pharmacyowner

We’re here to talk about a crucial part of compensation that many employers offer: shift differential pay. Offering shift differential pay is not just about providing extra money. It’s a reflection of an employer’s acknowledgment of the sacrifices and adjustments employees make to accommodate business needs. By compensating them fairly for these shifts, employers can: - Attract Talent: Competitive pay rates, including shift differentials, can make a position more appealing to potential employees. - Retain Employees: Recognizing the efforts of current employees can boost morale and reduce turnover. - Ensure Operational Efficiency: Especially in industries that require 24/7 operations, shift differentials ensure that there are always motivated employees ready to work, regardless of the hour. In essence, shift differential pay is a strategic tool that benefits both the employer and the employee, fostering a positive work environment and ensuring continuous business operations. https://lnkd.in/d9fPG_7E

Another sunday another informative post💱 📊 Understanding Percentiles in Compensation Pricing: A Key to Fair and Competitive Pay In the dynamic landscape of compensation analysis, understanding percentiles is essential for designing fair and competitive pay structures. Here's why percentiles matter and how they impact compensation pricing: 1️⃣ What are Percentiles?: Percentiles divide a dataset into hundred equal parts, each representing a percentage of the total. In compensation analysis, percentiles are often used to compare salaries and determine where an employee's pay falls relative to others in the same job market. 2️⃣ Determining Market Position: By analyzing market data and comparing salaries at different percentiles (e.g., 25th, 50th, 75th), organizations can gauge their market position and competitiveness. For example, if a company aims to offer salaries at the 75th percentile, it means that its pay rates are higher than 75% of similar positions in the market. 3️⃣**Tailoring Compensation Strategies**: Understanding percentiles allows organizations to tailor their compensation strategies to align with their business objectives and budgetary constraints. For instance, a company may choose to target the median (50th percentile) to maintain a competitive position while managing costs effectively. 4️⃣** Evolving with Market Trends**: Market dynamics change over time, and percentiles provide valuable insights into emerging trends. Regularly monitoring percentiles allows organizations to adapt their compensation strategies accordingly, ensuring they remain agile and responsive to shifts in the job market. In conclusion, percentiles play a pivotal role in compensation pricing by providing a benchmark for assessing market competitiveness, guiding internal equity decisions, and informing strategic pay decisions. By leveraging percentiles effectively, organizations can design compensation structures that attract, retain, and motivate top talent while supporting their long-term success. #CompensationAnalysis #Percentiles #MarketData #HRInsights #PayEquity #Rewards #jobpricing

Did you know 1 in 3 companies lack a strategy for ensuring fair pay? This can hurt employee morale and retention. Many organizations are addressing this by regularly reviewing salaries, using technology, and being transparent about pay decisions. Creating a pay equity plan not only builds trust and engagement but also helps attract top talent. Fixing pay gaps now is cheaper than waiting, and it helps make workplaces better and more fair You can check out the full article here ⬇️😊

Historically, the CEO takes the biggest payday but in more recent days, the compensation packages for other executives is rapidly increasing to match. So how can a thriving but conscientious company stay ahead of compensation gaps and trends? → A Tailored Search Strategy to find that perfect-fit match. → Industry Focused strategy that enhances the numbers that matter. → Regional Considerations to better understand your local economy. Our team dug into these tactics in the latest publication of the Handler Report: https://lnkd.in/e9uCurmh #compensationtrends #2024hiring #executivesearch

While we know that traditional incentives have some impact on addressing the hourly workforce's financial well-being, the extra compensation has a limited effect in moving the needle to cover expenses and long-term financial needs. Explore three success stories, each using a different approach to meet the needs of the hourly worker. #FutureofWork #EmployeeExperience #HumanResources #compensation

While we know that traditional incentives have some impact on addressing the hourly workforce's financial well-being, the extra compensation has a limited effect in moving the needle to cover expenses and long-term financial needs. Explore three success stories, each using a different approach to meet the needs of the hourly worker. #FutureofWork #EmployeeExperience #HumanResources #compensation

While we know that traditional incentives have some impact on addressing the hourly workforce's financial well-being, the extra compensation has a limited effect in moving the needle to cover expenses and long-term financial needs. Explore three success stories, each using a different approach to meet the needs of the hourly worker. #FutureofWork #EmployeeExperience #HumanResources #compensation