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THE COMPENSATION MODEL

Comp-Pay Model
The compensation discipline seeks to maximize competitive advantage by attracting and retaining the most qualified workers to an employer.  Best practice in today’s workplace considers total compensation to include base salary, bonus or incentive plans, benefits, and non-cash compensation.  A pay philosophy is a company’s commitment to how it values employees.

A consistent pay philosophy gives the company and the employee a frame of reference when discussing salary in a negotiation.  This usually requires a competitive well-rounded pay philosophy, including benefits and work-life balance.  Compensation philosophies reap little reward without the knowledge and alignment to the organization’s overall business strategy.  Armed with the right information, compensation professionals can create a philosophy that will stimulate a more engaged workforce and lead to a higher-performing organization.

A compensation system will price positions to market by using local, national, and industry-specific survey data.  It will include survey data for more specialized positions and will address significant market differences due to geographical location.  The system will evaluate external equity to the competitive market and internal equity which is the relative worth of each job when comparing the required level of job competencies, formal training, experience, responsibility, and accountability of one job to another.  The system must be flexible enough to ensure that the company is able to recruit and retain a highly qualified workforce while providing the structure necessary to effectively manage the overall compensation program.

Organizations should establish and communicate clear pay policies.  At a minimum, organizations need to ensure that their compensation policy adheres to employment legislation including:

  • Minimum Wage
  • Overtime Pay
  • Pay Equity
  • Vacation Pay
  • Holiday Pay
  • Incentive Pay
  • Tips and Gratuities
  • Pay Method and Pay Frequency
  • Pay Deductions
  • Payroll Records Tracking and Reporting

Many organizations adopt transparency in compensation practices.  Transparency involves compensation plans that are simple to understand, easy to implement and published internally to all employees.  Many companies provide an annual Total Rewards Statement to each employee that outlines and explains all compensation elements included in their compensation package including cash and non-cash.

Bonus and incentive pay is tied to specific performance results against pre-set goals and objectives at the individual and organizational level.  Results that are measured can be quantitative and qualitative.  When establishing bonus schemes, organizations often apply a balanced scorecard approach: looking at financial, human resources, and customer results.

A compensation model that encourages innovation should strike a balance between the risks and rewards associated with the work.  Reward programs can recognize innovation within all elements of a company and at all or the majority of employees.  When only the top 10% of high performers are eligible for recognition and associated rewards, approximately 70% of employees who fall in the middle of the performance bell curve and who are consistent performers day after day, can become discouraged and disengaged.  The goal should be to properly calibrate your awards approach to reach far more employees with recognition rewards, thereby creating a culture of innovation.

Compensation is a part of the complex HR processes, policies, and procedures.  Top management has to decide, the primary role of compensation in the organization, whether it will be a supplementary role or a dominant role.  The compensation philosophy is the foundation for all organizational compensation decisions.

Change can be challenging and demanding.  At WageWatch our compensation consultants can assist with your organization’s compensation needs and help ensure your wages and salaries are supporting your company’s business strategy and objectives.  In addition to our PeerMark Salary Survey for over 100 local lodging markets in the U.S. and Canada, we offer a National Benchmark Salary Survey.  With over 9,000 hotels and 200 casinos in our database, WageWatch’s hotel and gaming salary surveys are the most comprehensive surveys available to Human Resource professionals.  For more information on our services, including consulting, salary surveys, benefit surveys, and custom compensation reports, please call WageWatch at 888-330-9243 or contact us online.

Posted in Uncategorized on April 3rd, 2019 · Comments Off on THE COMPENSATION MODEL

HUMAN RESOURCES ROLE IN INNOVATION

Innovation-HR

How can human resources contribute to innovation? How can we turn new ideas into reality, break old paradigms, and step outside of the box with new solutions to old problems? Innovation may begin with creativity, but it is more than an idea — it takes place when great ideas come to fruition and make their mark in the world. In the past, most businesses focused on continuous improvement of their products and services to maintain a competitive edge. But in today’s economy, that’s not always enough.

As Human Resource professionals, we are fortunate to be responsible for many areas of an organization that directly impact and contribute to innovation, including recruitment, performance management, recognition, rewards, training, and employee engagement. Human Resources can also play a key role in creating an organizational structure and overall culture that fosters and supports innovation.

Recruiting can focus on hiring for innovation by identifying people who can “think outside the box” or have skills and capabilities that lend toward innovation. Performance management can serve as a valuable tool in the creation of a sustainable culture of innovation. Performance measures can give consideration as to whether or not employees are given the time and resources to experiment, generate and explore ideas, and make presentations to management. Rewards can be used to reinforce the importance of innovation and recognition can be used to encourage and inspire employees to innovate and share ideas. HR’s role in organizational design provides huge potential for enabling innovation. For example, organizational design can be used to facilitate easier exchange of employees’ ideas across boundaries and functions.

An example of a human resource driven innovation that used an out-of-the-box idea to improve the recruiting process is La Cantera Resort in San Antonio, Texas, a Destination Hotel, they have incorporated an idea made popular by Disney, the Fast PASS. In Disney’s version, guests can avoid the line and use a Fast PASS to get a ticket to ride an attraction at a specified time with limited to no waiting. This helps improve the guest experience, improves wait times, improves communication, and enhances the ability to meet the expectation of guests. At Destination Hotels, they have incorporated this concept into their recruitment practices. Special “FAST PASS” cards are given to managers who can spot people in their daily interactions (at grocery stores, restaurants, bars, the mall, etc…) providing exceptional customer service and invite them to consider an employment opening/opportunity with Destination Hotels. They can call a specific number and get a “prioritized/guaranteed” in-person interview as opposed to filling out an application during certain hours and hoping a chance to be considered. Like Disney, the approach at Destination Hotels improves the experience for the candidate and the HR function/hiring managers. It speeds up the ability to source the most qualified talent and create a match to open position needs at the resort. Destination Hotels compete on innovation.

While HR can have a significant impact on many of the key drivers of innovation, it is a collaborative process and requires many areas to come together in order to succeed. Executive leaders hold the key to the level and success of innovation in their organization. They control the strategic direction, influence the culture, and directly and indirectly control all organizational practices. Managers must know how to lead innovative teams, and individuals must know how to apply innovative thinking. Every department or function must be part of the process.  For example, Information Technology has become an enabler of innovative ideas, but it is also often the starting point for innovative products or services and Finance has a unique opportunity, through the budget development, to add innovation either as a line in the overall budget or as a percentage of every departmental budget.

Organizations need to develop practices that make it easier to innovate. For example, at the core of an organization’s culture should be an acceptance of the need to experiment and understand that this comes with the risk of failure and that failure needs to be seen as a learning experience and an important step in the process. Culture is key to sustainable innovation. The mindset and culture of the HR team have an exponential impact and influence on the entire organization. HR leaders can help enable their organizations to differentiate themselves by understanding the critical importance of innovation today and how their role can contribute by attracting and keeping the most innovative people, constantly improving their skills and creating and enabling a culture of innovation.

WageWatch offers accurate, up-to-date HR metrics, benefit survey data, market compensation data and salary reports that will allow you to stay current with the times. This information is highly beneficial in creating the best salary and benefits packages that meet or rival the industry standards. The PeerMark™ Wage Survey is the only Web-based custom survey tool that allows individual survey participants to select their competitive set for comparison purposes. Our experienced compensation consultants can assist with your organization’s compensation needs. We can help you ensure internal equity and compliance with regulations as well as help you structure your compensation programs to support your company’s business strategy and objectives. For more information on our services, including consulting, salary survey data, benefit survey data and market compensation reports, please call WageWatch at 888-330-9243 or contact us online.

Posted in Uncategorized on March 13th, 2019 · Comments Off on HUMAN RESOURCES ROLE IN INNOVATION

ARE YOU ATTRACTING TOP TALENT?

Talent-Attract

Many business owners find it to be a huge challenge to attract and retain a group of talented and hardworking employees that are loyal to the company and its mission. Finding high caliber employees with advanced skills to complete important jobs within a company is a challenge that not only exists in today’s marketplace, but one that business owners have had to navigate for years. Everyone is looking for top talent, and those companies that excel in attracting and retaining this talent are the ones that will reap the rewards. In addition to a number of other factors, businesses that best retain employees offer great compensation and benefits packages through data from 2013 healthcare compensation surveys, 2013 casino compensation surveys or compensation surveys for another specific industry.

To retain talent, it is essential that loyalty is established. In order to do this, the employee must feel that their job is instrumental in achieving the goals of the company, making them excited to come into work each day and give it their all. It is also important that the work the employee puts in is acknowledged, affirming their place within the company, and offering them opportunities for growth.

While compensation and benefits packages are one of the largest factors considered by employees, it isn’t enough to make top talent to stay. The following are a few ways that you can attract and retain the best employees at your company:

  • Promote open communication.When a company is completely open with employees, everyone will feel respected. Instead of allowing rumors to spread, let your employees know as soon as possible about anything that is going on in regards to the company. When possible, let your employees be a part of the decision making process. A culture of open communication is very attractive to employees.
  • Provide opportunities for team building.Most employees enjoy interacting with their coworkers. By encouraging team work, employees are able to build great working relationships and establish a trusting, open environment for the company. When working together toward a common goal, employees are more motivated and excited about their jobs, often producing excellent results.
  • Cater to individual work style. Each employee has a different way that they prefer to work, learn and be managed. When you as an employer take the time and effort to make adjustments for each employee’s needs, they will respect the company more and loyalty will, once again, be built. This will also help you to establish teams that will work best together based on their work styles.
  • Acknowledge your talent. When an employee does a good job, it is important that you recognize them for their efforts, so they feel that they are a valued member of the team. A majority of employees leaving a company do so because they feel unappreciated. Employees want to feel that the work they are doing is making a difference, so acknowledging their work often is essential. Also, review surveys for 2013 healthcare compensation, 2013 casino compensation and other market compensation data surveys for your industry to determine what benefits and bonuses you should be rewarding your employees with.

Implementing the above suggestions will help your company to build a culture that encourages retention of employees, which in turn will attract top talent. In addition to providing a great work environment that respects employees and provides opportunities for learning and growth, it is also important that they receive a solid benefits package. At WageWatch, we provide accurate data for 2013 healthcare compensation, 2013 casino compensation and compensation information for a wide variety of other industries. To learn more about our up-to-date market compensation data, such as 2013 healthcare compensation surveys or university benefits surveys, call 888-330-9243 or contact us online.

 

 

Posted in Uncategorized on February 20th, 2019 · Comments Off on ARE YOU ATTRACTING TOP TALENT?

MOTIVATING EMPLOYEES BY JOB DESIGN

Motivate

With changing demographics and a more competitive job market, human resources are more challenged than ever before to hire, engage, maintain, and keep employees happy and motivated.  Workers want more choice and flexibility in how they approach tasks, for example, more opportunities to work collaboratively.  They look for more opportunities to change duties, for exploration, to learn, and to advance in their career in a less linear way.  It is not only desirable but essential for businesses to have motivated employees.  Today many human resource professionals are looking at how to design jobs, work environments, and cultures that motivate employees.

Job specialization is the earliest approach to job design.   Job specialization is efficient but leads to boredom and monotony.  Early alternatives to job specialization include job rotation, job enlargement, and job enrichment.

Job rotation involves moving employees from job-to-job at regular intervals.  When employees periodically move to different jobs, the monotonous aspects of job specialization can be relieved.

Job enlargement consists of making a job larger in scope by combining additional task activities into each job through expansion.

Job enrichment is concerned with designing jobs that include a greater variety of work content, require a higher level of knowledge and skill, give the worker more autonomy and responsibility, and provide an opportunity for personal growth.

Research shows that there are five job components that increase the motivating potential of a job:  skill variety, task identity, task significance, autonomy, and feedback.

  • Skills
    • People will be more motivated if they are using a variety of skills in their positions, rather than one thing repeatedly.
  • Tasks
    • Employees are motivated to complete tasks if they identify with them and have seen them through from start to finish.
    • When employees feel that their work is significant to their organization, they are motivated to do well.
  • Autonomy
    • Employees like to be able to make decisions and have flexibility in their roles. Most employees will have lowered motivation if they feel they have no freedom or are being micromanaged.
  • Feedback
    • Employees need feedback (both positive and negative) in order to stay motivated.

Quality of life in a total job and work environment is also an important part of a positive and motivating experience for employees.  The elements included in ‘quality of life’ include:  open communication, an equitable reward system, employees’ job security and satisfaction, participative management, and development of employee skill, etc.  Since a significant amount of one’s life is spent at work, jobs need to provide satisfaction for sustained interest.  Jobs provide employees not only a living but also help in achieving other goals such as economic, social, political, and cultural.

The concept of empowerment extends the idea of autonomy.  The idea behind empowerment is that employees have the ability to make decisions and perform their jobs effectively.  Instead of dictating roles, companies create an environment where employees thrive, feel motivated, and have the discretion to make decisions about the content and context of their jobs.  Empowerment is a contemporary way of motivating employees through job design.

A growing body of research on the relational structures of jobs suggests that interpersonal relationships play a key role in making the work experience important and meaningful to employees.  Interpersonal relationships can often enhance employees’ motivations, opportunities, and resources at work.

Though employees need to have some intrinsic motivation (internal motivation) to complete the tasks assigned to them in their roles, they also need to be motivated by their employers.  By designing jobs that encompass all of the core characteristics, you can help increase employee motivation, in turn improving performance.

WageWatch offers accurate, up-to-date benefit survey data, market compensation data and salary reports that will allow you to stay current with the times. This information is highly beneficial in creating the best salary, incentive, and benefits packages that meet or rival the industry standards. The PeerMark™ Wage Survey is the only Web-based custom survey tool that allows individual survey participants to select their competitive set for comparison purposes.  Our experienced compensation consultants can assist with your organization’s compensation needs.  We can help you ensure internal equity and compliance with regulations as well as help you structure your compensation programs to support your company’s business strategy and objectives.   For more information on our services, including consulting, salary survey data, benefit survey data, and market compensation reports, please call WageWatch at 888-330-9243 or contact us online.

Posted in Uncategorized on February 13th, 2019 · Comments Off on MOTIVATING EMPLOYEES BY JOB DESIGN

ENGAGED VERSUS DISENGAGED EMPLOYEES—WHAT IS THE COST?

Employee Engagement

Employee engagement levels are at their highest in years.  The Gallup Organization has been measuring levels of employee engagement since 2000.  Over nearly two decades, the annual percentage of actively engaged U.S. employees has ranged from a low of 26% in 2000 to the recent six-month high of 34% in 2018.  On average, 30% of employees have been engaged at work during the past 18 years.  Conversely, the percentage of actively disengaged U.S. employees has ranged from a high of 20% in 2007 and 2008, during the heart of the recession, to the current low of 13%.   On average 16.5% of U.S. employees have been actively disengaged over 18 years of tracking.

To better understand employee engagement levels, it helps to understand how Gallup categories the three different segments of employee engagement.  “Engaged” employees are involved, enthusiastic, and committed to their work while “actively disengaged” employees are unhappy at work and aren’t afraid to tell others about it; they are resentful that their needs aren’t being met and act out, potentially undermining co-workers.  The biggest group of employees are those “not engaged;” they are unattached to their work and while putting in the time, there is no energy or passion put into their work.  To summarize, the 2018 Gallup survey results categorizes employees as:

  • Engaged = 34%
  • Not Engaged/Disengaged = 53%
  • Actively Disengaged = 13%

What is the cost of unengaged employees to an organization?  Gallup indicates that an “actively disengaged” employee will cost their organization $3,400 for every $10,000 of salary, or 34%.  For example, if an average salary is $60,000 per year, the cost for each disengaged employee is $20,400 ($60,000 x .34).  For a company with 1,000 employees, 13% are actively disengaged, for a total of 130 employees.  In this example, the total annual cost to the organization is $2.65 million (130 employees x $20,400).  This monetary loss to the organization is only for the actively disengaged employees and does not represent the loss among employees who are in the “disengaged” (53%) segment.  However, it is compelling to understand the cost for the most “actively disengaged” employees, knowing that the cost of total employee disengagement would be higher.

After computing the cost of disengagement, the focus shifts to increasing engagement.  Based on attributes measured by Gallup in their employee engagement survey, employees place the greatest importance on a role and organization that offers them:

  • The ability to do what they do best
  • Greater work-life balance and better personal well-being
  • Greater stability and job security
  • A significant increase in income
  • The opportunity to work for a company with a great brand or reputation

How do organization increase engagement within their organization?  Some time-tested methods include the following:

  • Develop great managers, they have a tremendous impact on their employee’s experience within your organization. Build a strong manager development program to ensure employees have great bosses.
  • Managers need to schedule on-going career conversation with their employees. Statistics demonstrate that employees want to have career conversations with their boss; it shows the employee that someone at work encourages their development.
  • Build a learning/development culture—one of the primary reasons employees leave a job is to gain career development. Building a learning culture demonstrates to employees that the organization cares about their personal development and that there are advancement opportunities for them within the organization.
  • Allow greater flexibility in the work environment. In 2016, the Gallup survey measured that 43% of employees worked remotely in some capacity.  The findings demonstrated that engagement climbs when employees spend some time working remotely and some time working in a location with their co-workers.  The greatest return exists when employees maintain some balance:  working remotely most of the time but still getting face time with managers and co-workers.
  • Prioritize and demonstrate diversity and inclusion at levels. If employees feel unwelcome they are less likely to care about their position.

For an organization to prioritize increasing employee engagement, it is important to develop an ongoing measurement of engagement. To better understand the specific tactics that will increase engagement within your organization, measure engagement through employee surveys to determine what works and doesn’t work at your organization.

WageWatch offers accurate, up-to-date HR metrics, benefit survey data, market compensation data, and salary reports that will allow you to stay current with the times. This information is highly beneficial in creating the best salary and benefits packages that meet or rival the industry standards. The PeerMark™ Wage Survey is a custom-built survey tool that allows individual survey participants to select their competitive set for comparison purposes.  Our experienced compensation consultants can assist with your organization’s compensation needs.  We can help you ensure internal equity and compliance with regulations as well as help structure your compensation programs to support your company’s business strategy and objectives.   For more information on our services, including consulting, salary survey data, benefit survey data and market compensation reports, please call WageWatch at 888-330-9243 or contact us online.

Posted in Uncategorized on January 30th, 2019 · Comments Off on ENGAGED VERSUS DISENGAGED EMPLOYEES—WHAT IS THE COST?

POTENTIAL FOR 2019 IN THE LABOR AND EMPLOYMENT LAW AREA

Labor Law 2019

While 2018 ushered in some important changes at the federal level in labor and employment law such as:

  • The Fair Labor Standards Act is amended to address tipped employees and tip ownership
  • The Tax Cuts and Jobs Act which impacts certain deductions and reporting provisions
  • Regulatory interpretations from the NLRB which reversed course from its previous decisions

It saw its strongest “advocate” in the passing of new laws from the local and state arena.   What will be some of the continuing trends for 2019?

We believe employers should continue to prepare for the following trends:

  • As marijuana use, both recreational and medicinal, become more widely accepted at state and local levels, look for more court’s and administrative interpretations with respect to zero tolerance drug policies
  • Required sexual harassment training
  • Increase in mandatory paid and unpaid time off including sick leave, military leave, and family leave
  • Restrictions on salary history questions
  • Cybersecurity requirements for the protection of employee data and employer procedures for dealing with breaches

Additionally, employers should keep their eye on minimum wage increases (both state and local) during 2019, “ban the box”, predictive scheduling and [at the federal level] the continued NLRB’s “reverse course” in the previous administration’s decisions as well as potential immigration policies.

Guest author:  Pautsch, Spognardi & Baiocchi Legal Group  (www.psb-attorneys.com)

Posted in Uncategorized on January 15th, 2019 · Comments Off on POTENTIAL FOR 2019 IN THE LABOR AND EMPLOYMENT LAW AREA

MINIMUM WAGE UPDATE – JANUARY 2019

The current federal minimum wage, under the Fair Labor Standards Act (FLSA), is $7.25 per hour which has been in effect since July 2009.  States have the ability to set a rate that is higher than the federal minimum rate and employers are obligated to pay the higher rate.  Currently, there are 29 states that have laws at the state or local level mandating higher pay than the federal rate.

On September 4, 2018, the Department of Labor published a Notice in the Federal Register to announce that, beginning January 1, 2019, the Executive Order 13658 minimum wage rate is increased to $10.60 per hour.  This Executive Order minimum wage rate generally must be paid to workers performing work on or in connection with covered contracts.  Additionally, beginning January 1, 2019, tipped employees performing work on or in connection with covered contracts generally must be paid a minimum cash wage of $7.40 per hour.

Voters across many states approved ballot measures to raise their state minimum rates over time, with increases occurring through 2020 and beyond.  There are 19 states which have an increase that takes effect on December 31, 2018 or January 1, 2019, including:  1) Alaska, 2) Arizona, 3) Arkansas, 4) California, 5) Colorado, 6) Delaware, 7) Florida, 8) Maine, 9) Massachusetts, 10) Minnesota, 11) Missouri, 12) Montana, 13) New Jersey, 14) New York, 15) Ohio, 16) Rhode Island, 17) South Dakota, 18) Vermont, 19) Washington.

For more details, click on the following link to view the WageWatch Minimum Wage Chart with details of federal, state and local minimum wage increases:  WageWatch – U.S. Minimum Wage Increases.  In addition to the statewide minimum wage increase, multiple states have approved minimum wage increases that are higher than the statewide average.  (The increases are referenced in the attached Excel spreadsheet).  There is one state, Oregon, and the District of Columbia that have scheduled their wage increase to begin on July 1, 2019.

Although there are no statewide minimum wage increases, there are several states in which specific cities and/or counties which have wage increases scheduled to occur on 1/1/2019; these states include:  Illinois, Maryland, and New Mexico.

At WageWatch our compensation consultants are focused on your organization’s compensation needs and ready to help you ensure that your compensation programs are supporting your company’s business strategy and objectives. WageWatch offers accurate, up-to-date benefit surveys, salary surveys and pay practices data that will allow you to stay current with the times. This information is highly beneficial in creating the best salary and benefits packages that meet or rival the industry standards. For more information on our services, including consulting, salary survey data, benefit survey data and market compensation reports, please call WageWatch at 888-330-9243 or contact us online.

EMPLOYEE RETENTION STRATEGY

Retention

Employee retention is important to organizations in order to facilitate achieving a company’s goals and objectives.  HR leaders consider improved retention a high priority over the next five years.  Although retention is considered a priority, efforts to increase it have been stymied due to competing priorities and a lack of resources.  The side effects of turnover are not only financially based, but are noticed in decreased productivity, knowledge loss, and a lowered morale.

Some interesting statistics on employee retention include:

  • About 3 million Americans have QUIT their job each month since June 2017 (US Bureau of Labor Statistics)
  • 30% of employees leave a new job within the first 90 days of employment (Jobvite)
  • 51% of employees are looking to leave their jobs (Gallup)
  • Companies that support remote work have 25% lower employee turnover than companies that don’t (Owl Labs)
  • 35% of employees report that they’d look for a new job if they did not receive a pay raise within the next year (Glassdoor)
  • 44% of employees would consider taking a job with a different company for a raise of 20% or less (Gallup)
  • 71% of retirees who returned to work originally retired due to a lack of flexibility in their work (Global Workplace Analytics)

With nearly one-third of employees leaving a new job within the first 90 days after starting a new position, it is important to understand the dynamics causing employees to quit.  The top reason cited was that the day-to-day role was not what the employee expected.  Other top reasons include: the employee had a bad experience that drove them away and the company culture lacked transparency.

Before addressing retention, the first step is to make sure that you hire the right employees—hire selectively.  It is important to ensure that the new hire has the right skills for the position as well as being a good fit with the company culture, the manager, and the coworkers that they will interact with on a daily basis.

Once hired, onboarding and orientation activities will help to set new hires up for success. These activities can last for a few weeks or months depending on your organization.  Aim to develop an onboarding process in which new staff members not only learn about the job but also the company culture and how they can contribute and thrive, with ongoing discussions, goals, and opportunities to address questions and issues.

Establish mentorship programs to pair a new employee with a mentor.  The mentor can provide a wealth of knowledge and resources to the new employee while the new employee can offer a fresh viewpoint to the mentor (mentor should not be the supervisor).

Offering an attractive compensation package is essential in this competitive market.  This includes salaries as well as bonuses, paid time off, health benefits, retirement plans, and other perks that distinguishes one workplace from another.

Work-life balance is important; burnout is a factor that impacts retention.  What is your company’s culture?  A healthy work-life balance is important and employees need to know that management understand its importance.

Employees like to feel that they have the possibility for advancement.  Training and development programs send a message that the employer is interested in their career growth.  It is import for managers to ask their direct reports about their career goals and determine how they can help them achieve their goals.

Providing opportunities for open communication and feedback is essential for employee retention.  Direct reports need to feel that they can voice their ideas, questions, and concerns.  In return, employees want management to be open and honest in their communication, especially feedback about their performance.  Employees desire ongoing feedback about their performance.

Recognize accomplishments of both the individual employee and the team. This can be as simple as a thank-you note or as elaborate as setting up a group excursion.  It is important to celebrate successes—to help employees feel engaged in their work environment

Employee retention matters; it is important to understand what is causing turnover within your organization.  Employee exit interviews provide information that can help retain your remaining staff.

At WageWatch our compensation consultants are focused on your organization’s compensation needs and ready to help you ensure that your compensation programs are supporting your company’s business strategy and objectives. WageWatch also offers accurate, up-to-date benefit surveys, salary surveys and pay practices data that will allow you to stay current with the times. This information is highly beneficial in creating the best salary and benefits packages that meet or rival the industry standards. For more information on our services, including consulting, salary survey data, benefit survey data and market compensation reports, please call WageWatch at 888-330-9243 or contact us online.

Posted in Uncategorized on November 14th, 2018 · Comments Off on EMPLOYEE RETENTION STRATEGY

WHAT’S NEXT…JOINT EMPLOYMENT REDEFINED?

Joint EmploymentHave you noticed the flip-flop on Joint Employer Standards from the National Labor Relations Board (NLRB)?  Currently, the standards are in flux.  In 2015, the definition of a joint employer was modified and expanded based on the Browning-Ferris Industries case.  This case changed over 30 years of precedent that had required “direct” and “immediate” control over an employee’s working conditions to “indirect” and “potential” control as the new definition of joint employment.

Under the Browning-Ferris standard, even if two entities never exercised joint control over the essential terms and conditions of employment, and any joint control was not direct and immediate, there could still be joint employers based on: (1) the existence of reserved joint control, (2) indirect control, or (3) control that was limited and routine.  Browning-Ferris was considered controversial and criticized by many employers and business groups.

In December 2017, in an attempt to rein in what was perceived as a broad and vague standard, the NLRB re-established the pre-Browning-Ferris standard in the Hy-Brand Industrial Contractors case which returned the former joint employer test requiring “direct” and “immediate” control.

To the dismay of many in the business community, in February 2018, due to an alleged conflict of interest, the NLRB vacated the Hy-Brand case, leaving Browning-Ferris as the law of the land once again.  Prior to Browning-Ferris, the NLRB relied on decades of legal precedent to set the joint employment standard.

In May 2018, the NLRB announced its intention to clarify the joint employer standard by issuing a new rule to reinstate the pre-Browning-Ferris joint employer standard.  On September 14, 2018, the NLRB published a Notice of Proposed Rulemaking (NPRM) in the Federal Register regarding its joint-employment standard (allowing 60 days for public comments).  The proposed rule reflects a return to the previously longstanding standard that an employer may be found to be a joint-employer when the following condition exists:

    • A joint-employer of another employer’s employees exists only if it possesses AND exercises substantial, direct and immediate control over the essential terms and conditions of employment and has done so in a manner that is not limited and routine. 

 The 60-day period for public comments continues through November 13.  After the NLRB reviews the public comments and replies, it will issue a final rule regarding the joint employer standard.  If issued without substantial changes, this rule will provide employers with a more clear and consistent standard and reduce the likelihood of an employer inadvertently becoming a joint employer.

WageWatch offers accurate, up-to-date HR metrics, benefit survey data, market compensation data and salary reports that will allow you to stay current with the times.  This information is highly beneficial in creating the best salary and benefits packages that meet or rival the industry standards.  The PeerMark™ Wage Survey is the only Web-based custom survey tool that allows individual survey participants to select their competitive set for comparison purposes.  Our experienced compensation consultants can assist with your organization’s compensation needs.  We can help you ensure internal equity and compliance with regulations as well as help you structure your compensation programs to support your company’s business strategy and objectives.   For more information on our services, including consulting, salary survey data, benefit survey data and market compensation reports, please call WageWatch at 888-330-9243 or contact us online.

ALIGNING COMPENSATION WITH COMPANY CULTURE

Many organizations today are focusing on their company’s culture including determining their culture, deciding what it should be, aligning it with strategic goals, and transitioning to the desired culture.  Culture is important because it reinforces the values of the organization, which in turn shapes team members’ behavior.  There are many success stories of companies with cultures that are aligned to their business goals including Google, Zappos, and Patagonia.  These companies have developed a culture that supports their business as well as their culture.

Organizational culture is the collective behavior of the people who are part of the organization and has important effects on the morale and motivation of the organizational members.  It includes the values, norms, systems, beliefs, attitudes, and habits of the organization which impacts the interactions of the employees with each other, and with customers.  Even before you define it, you know it is there and that it has an impact on your business. This is why it is so important to internalize the culture and understanding when company activities are in sync or not in sync with the culture.

Once the company values and desired culture are defined, compensation can support and help drive the values and corporate culture.  It is important that the role of compensation in an organization and the compensation strategy are also defined.  For example, where does the organization want to set pay levels in comparison to the competitive market?  Perhaps the organization’s culture is strong in training and developing its employees, acknowledging their successes and offering advancement opportunities. This, in turn, may allow the organization to set lower pay levels than what is paid in the market.  Of course, when recruiting it is important to align the compensation strategy to support the values of the culture through highlighting performance management, performance appraisals, and the goal-setting process for each team member.

Once values, business objectives, and desired behaviors are determined then compensation plans can be put in place to support the culture.  For example, if the business objective is innovation and the desired behavior is risk-taking, then short-term incentives may be the compensation strategy.  If the goal is for a highly trained workforce and the behavior is learning and upgrading skills, then skill or competency-based pay may be the compensation strategy.

Corporate culture is about people’s behaviors – how goals are accomplished – so as to establish a culture that drives company success, organizations should link a significant component of their compensation systems to behaviors.

At WageWatch our compensation consultants can assist with your organization’s compensation needs and help you ensure that your compensation programs are supporting your company’s business strategy and objectives.  WageWatch also offers accurate, up-to-date benefit survey data, market compensation data and salary reports that will allow you to stay current with the times. This information is highly beneficial in creating the best salary and benefits packages that meet or rival the industry standards. For more information on our services, including consulting, salary survey data, benefit survey data and market compensation reports, please call WageWatch at 888-330-9243 or contact us online.