Many organizations today are focusing on their company’s culture including determining their culture, deciding what it should be, aligning with strategic goals and transitioning to the desired culture. Culture is important because it reinforces the values in 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 not only developed a culture that supports their business, but have fully embraced 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 and affects 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 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 on 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 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 .
As stated in our previous post, we will now cover the proper steps to take in order to minimize risk when deciding to share wage and benefit information with a competitor. The safest course of action for human resource directors to follow is to not discuss wage and benefit information with competitors except in controlled and limited situations. The following is a summary of the steps that WageWatch recommends to minimize your risk if you intend to share data:
- -Employers should act unilaterally about setting wages and benefits. There should not be an agreement or understanding, written or oral, with respect to fixing, maintaining or stabilizing wages and benefits.
- -The wage and benefit information should not be exchanged directly between employers. This means no phone calls or round tables where information is exchanged.
- -A third party should be utilized in order to make sure that no employer has direct access to each other’s data. Participation in a WageWatch compensation survey can be part of a defense against accusations of antitrust violations. The WageWatch Hospitality Industry Competitive Market Survey complies with all DOJ safe harbor guidelines.
- -The information that is disseminated by the third party should be aggregated. The ranges or averages of the wages and benefits cannot be disseminated if it can be related to a particular organization or a specific job. This eliminates the once prevalent practice of tabulating the data for each employer in a spreadsheet format even if the name of the particular employer associated with that data was excluded.
- -Each aggregated wage or benefit statistic disseminated should be a composite of at least five different employers.
- -The disseminated statistics must be “historical”. This means the older the better. The aggregated information disseminated to participants should not reflect current or prospective wages and benefits. Current is defined as wages or benefits that having been in effect for less than three months.
While the above is an overview of steps to be taken when considering exchanging wage and benefit information between hotels, consultation with your legal counsel is recommended before participating in any exchange of wage and benefit information with competitors.
For 13 years, WageWatch has been providing expert services across multiple industries and geographic markets with cost-effective online compensation and salary surveys. We are an innovative organization that is always on the lookout for new ways to collect compensation and salary data for surveys and wage reports, allowing us to expand continuously into new industries and markets.
Please call us today at 480-237-6130 or contact us online to learn more about our services.
Hotel human resource professionals frequently participate in professional associations, industry groups and other organizations formed to facilitate information sharing and networking. Few are aware that such activity, if it involves the sharing of cost-related information such as employee wages and benefits, could give rise to violations of antitrust law or be used as evidence of such violations.
There have been a number of antitrust cases brought by plaintiffs in different industries regarding the exchange of wage and benefit information between competitive employers. Probably the two most noted cases are United States v. Utah Society for Healthcare Human Resources Administration (1994) and Todd v. Exxon Corp. (2001). While these cases dealt with specific industries, most attorneys practicing in the area of labor relations and antitrust look to these cases for guidance regardless of the industry.
The Federal Trade Commission and the Department of Justice have issued a statement setting forth an antitrust “safety zone” for health care providers who participate in written surveys. They will not be considered to be in violation of antitrust laws if the following conditions are satisfied:
– The survey is managed by a third party;
– The information provided by survey participants is based on data more than three months old; and
– There are at least five providers reporting data upon which a disseminated statistic is based, no individual provider’s data represents more than 25% on a weighted basis of that statistic and any information disseminated is sufficiently aggregated so that it does not allow recipients to identify the compensation paid by any particular provider.
This statement gives guidance specifically to the health care industry. To date, there is not such a case that has been brought in the hotel industry. Although, with the recent surge of labor organization activity going on across the country, our industry should continue to be cautious with regard to how wage and benefit information is shared with competitors.
In our next post, we will discuss precautions to minimize risk if you intend to share wage and benefit information with a competitor.
WageWatch surveys over 5,000 hotels, resorts and casino properties in the United States and the Caribbean. It was the first to leverage the power of the Internet to create the first of its kind, web-based wage and benefits survey tool in 2000. WageWatch’s proprietary survey process enables human resources professionals to access the most up-to-date and accurate wage and benefits data and prepare custom reports based on their needs and requirements. For more information, please contact WageWatch at 480-237-6130 or contact us online.