Today I have a compensation bonanza for you. I hope you enjoy reading these as much as I did:
1. Compensation Consultant Ann Bares writes a great post on the value of pay-for-performance in retaining high performers across an enterprise. I’m a big fan of data, and this one links to a great study. Read it here.
2. Executive Compensation guru Dan Walter shares a fantastic piece on biases in the media as it concerns coverage of executive compensation. There is a fixation on Fortune 500 CEOs whenever stories are done on executive pay. 1. The evidence would suggest they are.Setting aside the question of if pay within that population is fair or not 1, however, stories focusing strictly on that group ignore the reality that there are roughly 400,000 CEOs in America (most of which are paid well under the 10s of millions cited by the media when declaring executive pay out of control). Check this post out for a different (and might I add informed) perspective on CEO pay.
3. I want to close with this Compensation Cafe piece focusing on the lump sum to reward high performing employees. When budgets are tight (or a strong performer is at the top of his / her pay grade) the lump can be a great recognition tool. Lump sums (instead of increases) are often difficult for employees to swallow, but as the post points out (once accounting for present value of future cash flow) they don’t cost anywhere as much as percentage increases to pay out. In a tough economic environment something is better than nothing, so if you’re looking at nothing this year the lump may be worth considering if you have something in your budget.
As always, please share your thoughts in the comments below.
If you have questions about something you’ve read here (or simply want to connect) you can reach me at any of the following addresses:
SomethingDifferentHR@gmail.com OR firstname.lastname@example.org