The real costs of pay compression

Quick Guide

With a labor market cooling, some employers aren’t concerned with pay compression.

This is a mistake.

Pay compression is a persistent problem, requiring regular remedy. While it may not show up in employee turnover, it causes other problems:

Low morale

Productivity dips

Legal risks

And many more

Uncover the hidden risks of pay compression under current labor market conditions.

your

Quick Guide

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October 3, 2015

Compensation Round-Up: Love, Lies, and a Game of Horse

<img width="610" height="175" src="http://www.payscale.com/cms-images/default-source/b2b/blog_header9-29_main.png" alt="Blog_Header9.29_Main" /> <a href="https://www.linkedin.com/in/joleenoerman">Joleen Oerman, B2B Content Marketing Specialist, PayScale</a> Welcome to the Compensation Roundup, where we bring to you the hottest news in comp! Sample what’s happening in compensation right now, get in the know and grab some conversation starters. This week's topic: Loves, Lies and a Game of Horse.

September 25, 2015

How to Communicate a Change in Annual Raises or Compensation Rates

<img width="610" height="175" src="http://www.payscale.com/cms-images/default-source/b2b/header_communicatechangerightway.png" alt="header_CommunicateChangeRightWay" /><a href="https://plus.google.com/102099066436032147105? rel=author" style="line-height: 1.5">Jessica Miller-Merrell,</a> blogging4jobsAny kind of change in the workplace can be a challenge for employees. Big or small, change is typically not a welcomed thing. Add in a monetary factor and people tend to get even more stressed out. It’s understandable. You’re talking about making changes to their livelihood, which can be stressful, confusing, annoying or downright scary. However, change is an inevitable part of life and work. So when you do find yourself in a situation where change is around the corner, it’s vital to communicate in a way that doesn’t alienate your workforce. Communicating compensation rates or annual raise changes requires strategy, tact and forethought.

September 16, 2015

Focal vs. Anniversary merit raises: Pros and cons

<img width="610" height="175" src="http://www.payscale.com/cms-images/default-source/b2b/header_focalsalaryincreases.jpg?Status=Temp&sfvrsn=2" alt="header_FocalSalaryIncreases" /><a href="http://www.hr-writer.com/" title=" target=" rel="noopener">Tess C. Taylor, PHR, SHRM-CP, PayScale Senior Blogger</a> Shifting merit increases from employee anniversary dates to a focal point system may be an option for companies that want to connect performance with pay. While it can raise concerns for employees initially, there are multiple advantages of changing salary increases to correspond with actual performance metrics. But before you go messing with people’s pay, learn what this change impacts.

September 10, 2015

Minimum Wage Increases: The Key Factor You're not Looking At

<img width="610" height="175" src="http://www.payscale.com/cms-images/default-source/b2b/header_mediumminimumwage.jpg?Status=Temp&sfvrsn=2" alt="header_MediumMinimumWage" /> <a href="https://www.linkedin.com/in/joleenoerman">Joleen Oerman, PayScale</a> Like a dress code in a public school, minimum wage mandates are invading cities, to mixed reactions. Concern is understandable: As a small business owner, one moment you’re able to outfit your work force into jeans of many brands—from Jordache to Joe’s. Then your city mandates that your employees can only wear only jeans sold at Nordstrom, when you’ve been outfitting much of them in jeans from Wal-Mart. As compensation is likely one of the largest line items in your budget, significantly upping the price of your lowest paid employees is a daunting task that many do not feel they can afford. Much like businesses, cities differ greatly in their ability to handle a significant increase in minimum wage.

September 1, 2015

Annual Compensation Cycles Need to Take an Uber

<img width="610" height="175" src="http://www.payscale.com/cms-images/default-source/b2b/header_joincyclerace.jpg?Status=Temp&sfvrsn=2" alt="header_JoinCycleRace" /><a href="https://plus.google.com/u/0/117837223662750785428? rel=author">Tim Low</a>, PayScale I was reading this <a href="http://qz.com/428813/ge-performance-review-strategy-shift/">story</a> about GE dumping its famous (and infamous) Jack Welch baby, the stack ranking and annual performance review. That is a worthwhile topic for another day, but I was struck by a comment in the article by GE’s head of human resources, Susan Peters: “The world isn’t really on an annual cycle anymore for anything.”So. True.

August 28, 2015

New Whitepaper: 7 Reasons You're Not Too Small for Compensation Software

<img width="610" height="175" src="http://www.payscale.com/cms-images/default-source/b2b/header_inthenews.jpg?sfvrsn=0" alt="header_InTheNews" /> What’s business-critical, valued by your employees, and likely one of the biggest line items on your budget? That’s right, compensation! You’ve implemented software for other parts of your business, so why ignore comp?