• Salary or commission? Making the case for sales compensation planning

    Salary or Commissions

    A big challenge for many growing businesses is how to fairly compensate salespeople when cash flow is often not stable yet. The norm is to hire sales professionals strictly on a commission only basis, hoping that they will outperform your expectations and bring in new business. Others try offering a low salary with tiered commissions to reel in sales. 
    On the one hand, a commission-based system is supported by the incentive of new sales and upsells to current customers. On the other hand, sales people may not be overly motivated by this approach, resulting in less than stellar performance. How can a company leverage the best of a salary and commission compensation plan to improve sales performance?

  •  
  • Catching a Purple Squirrel in 3 Easy Steps

    Laleh Hassibi, PayScale

    Take the PayScale Challenge!
    Are you searching for a purple squirrel – you know, that elusive candidate who has all the qualifications and experience your job position requires? Or maybe you just lost a valuable employee to a competitor.  If you’re like most organizations, you spend between 30% and 50% of revenues – totaling millions of dollars a quarter – on compensation. Getting compensation right not only means having control over the bottom line, but getting and keeping star employees.

  •  
  • Managing Employee Pay with Ranges

    header_PayRanges

    Mykkah Herner, MA, CCP; Manager of Consulting Services at PayScale

    I spend quite a bit of time working with people to develop appropriate structure for their organizations. How many grades should they have? How wide should the ranges be? How can I make sure my ranges are aligned to the market? I’ve written before about pricing based on the job vs pricing based on the employee, which is a very strategic step forward for the organization. The question is, once you build your ranges around the market, how do you determine where to place your employees within range?

  •  
  • How to Budget Compensation in a Volatile Economy

    header_VolatileEconomy

    Laleh Hassibi, PayScale

    At the end of 2012, most businesses were very optimistic about job and economic growth in 2013. The trends from Q4 and early Q1 supported the fact that we were in fact rebounding quite nicely from the recent economic recession. There was a small worry that the impending doom of sequestration would occur, but most business leaders skipped optimistically into 2013 with confidence that Congress would come to an agreement, thereby avoiding indiscriminate, across-the-board spending cuts.

  •  
  • Pricing to the Employee vs. Pricing to the Job

    Blog_header_PricingJobandPerson
    Mykkah Herner, MA, CCP, PayScale

    As an employee, I’m often concerned with my own value and therefore worth to the organization. As a manager, I was often trying to determine the value of each job to the organization. Now as a comp professional, I focus on a little bit of both: the value of the job itself, but also the value of the employee to the organization.

  •  
  • Equity Compensation – Restricted Stock Units (RSUs), Downside Protection with a Couple Downsides

    Stickman - equity compensation - rsu
    Dan Walter, Performensation

    Last month I covered Restricted Stock Shares (RSS), today’s post covers Restricted Stock Units (RSUs). Where RSS and Stock Options are cousins, RSS and RSUs are siblings. RSS is the older sibling, with more years and experience under its belt. RSUs are the new little sister who came by surprise and often gets more attention than seems to be required. RSUs were seldom used before they shot into the spotlight following the Dotcom crash of 1999-2000. Initially, they were used to replace underwater stock options and slow the use of plan shares approved by shareholders. They provided some protection against a decrease in stock price and used somewhere between 25-50% of the shares require to provide the same value as stock options. They quickly became a major component of the equity compensation toolbox.

  •  
  • Need a Break From Work? Take an Email Vacation!

    Email vacation
    Jessica Miller-Merrell, blogging4jobs

    How many times have you checked your email today? Is your email always up and ready to be checked every time you get a pop-up notification? Do you have notifications set up on your smart devices to make sure you never miss an email? Is email proving to be a distraction that's keeping you from all your other HR duties? If you’re anything like me, this sounds all too familiar. Email has begun to dictate our lives whether it is for discount codes or the newest business opportunity.

  •  
  • CFO Corner: What the Heck is Realizable Pay (and why you need to know…now)

    Stickman - Realizable Pay
    Dan Walter, Performensation

    In the good old days, determining total compensation was fairly easy. Always wrong, but easy. For any given year you just added up what you paid people in base pay, what you expected to pay them in bonuses, other cash incentives, and the Fair Value (or a reasonable equivalent) of equity at the time it was granted. Public companies disclosed this information and shareholders were left to make their own projections from there. There has been a fairly rapid movement to a measurement called “realizable pay” (the current/recent value of outstanding pay). This metric may also be combined with “realized pay” (the value of exercised or otherwise delivered pay) in an attempt to provide a more accurate picture of total compensation and its alignment to company performance.

  •  
  • 10 Questions to Ask When Choosing a Payroll Service Provider

    Header_payroll
    As a small or startup business professional, payroll might seem like the last logistic you’d like to figure out. Your first crucial human resources investment should be in tools to get compensation right, but after that it makes sense to take a look at automating other HR processes, such as payroll. Learning how to file business taxes and payroll paperwork might not be your idea of time well spent, so hiring a payroll provider could be a strategic option.

  •  
  • How to Become a Productivity Expert

    Header_productivity
    Evan Rodd, PayScale

    Ahh, the New Year has finally arrived. We can now all breathe a collective sigh of relief, as the apocalyptic predictions surrounding 2012 did not come to pass. Since the planet wasn’t engulfed in flames, we can finally focus on something slightly less stressful: New Year’s Resolutions. 

  •  
  • 5 Time Management Tips You Must Do in 2013

    Header_FindTime
    Jessica Miller-Merrell, blogging4jobs

    Every year on the first work day of January, your co-workers return to their desks with a new plan to transform themselves via their New Year’s Resolution. Maybe they are mixing health shakes in the breakroom in place of their lunches, walking through the halls (or up and down the stairs) in lieu of their typical breaks to sneak in some exercise or madly chewing nicotine replacement gum to kick the smoking habit. Whatever their goal might be, their intentions are good. But, this year, instead of (yet again) resolving for your health, consider the best New Year’s resolution of all: resolve to find more time.

  •  
  • CFO Corner: Beyond TSR (Total Shareholder Return)

    Stickman Beyond TSR

    Dan Walter, Performensation

    Executive Pay that Works for Shareholders and Companies

    Like Milli Vanilli in 1990, Total Shareholder Return (TSR) is currently all the rage in executive compensation plans. And, like Milli Vanilli, as entertaining as TSR is to some, it may prove to be a less than stellar performer for most. Of course, unlike the disgraced pop-stars, TSR is unlikely to disappear from view any time soon.

  •  
  • What Is Your Worth? How HR Asks for a Raise

    Header_HR_Raises
    by Jessica Miller-Merrell, Blogging4Jobs

    Scenario: Your team’s workload has increased and your team has implemented innovative systems. Your department is running like a well-oiled machine with increased productivity despite the occasional (ok – incessant) curveball. You’re putting in the long hours and delivering results. Leadership trusts you. 

  •  
  • Cash is King. Who are the rest of the royals?

    Stickman Cash is KingBy Dan Walter, Performensation

    In the mighty kingdom of compensation, cash is king. Cash holds this majestic position through a family line that stretches back hundreds, if not thousands, of years. Like any monarch, King Cash has a retinue of supporters, all with their own long histories and stories of power.

    I will be providing a new series of posts on Payscale’s Compensation Today blog. These posts will be focused on explaining the King’s court as well as the strategies, tactics and technical aspects of how to best use these players in the game of chess that is total rewards.

  •  
  • How to Address Concerns of Favoritism for Employee of the Month

    Header_EmployeeFairness
    by Lacey Halpern, XeniumHR.com

    How do you reward your employees for a job well done? Do you recognize them in the moment? On a monthly basis? At all?

    As employers have the resources to spend more time, energy, and money on retention, they can look to things such as an Employee of the Month program to publicly recognize top performers within the organization. Employers must take in to consideration that fairness, equality and a well communicated program are vital to the success of an employee of the month program.

  •  
  • Compensation Strategies That Work

    Header_strategy
    By Stacey Carroll, PayScale.com 

    This week, I presented a new webinar entitled "Compensation Strategies that Work." If folks were hoping that I had a magic answer for the compensation strategy that works best they were disappointed. The point of the webinar was that the strategy that works best for your organization is the one that your senior leadership team thinks fits your organization's particular business objectives.

  •  
  • How to Determine New Employees' Annual Bonuses

    When to Give an Annual Bonus to a New Employee

    Chances are, you have recently been tasked with the job of determining (or at least helping to determine) what your employees’ end-of-year bonuses should be. With your long-term employees, you've have had some historical practices, as well as a, hopefully, comprehensive performance review to rely on to help you. But what do you do with employees who haven’t been with the company for a full year, including those who may have joined very recently? While there are no hard and fast rules, here are some approaches for you to ponder.

  •  
  • Bullying in the Workplace: Information for Taking Action

    How to Address Complaints of Bullying in the Workplace

    By Bridget Quigg, PayScale.com

    Anderson Cooper of CNN created a special series on it. School kids suffer from it. And, HR leaders are on guard for it more than ever. Bullying has taken center stage as a major problem in the US. How do you, as a business leader, handle accusations of bullying at your organization?

  •  
  • Successful Multimedia Presentations

    How to Create Multimedia Presentations that Connect with Your Audience

    By Bridget Quigg, PayScale.com

    As an HR professional working in compensation, you not only have to know your labor market, understand your company goals, beware of pay inequity, retain top talent and develop pay for performance, you must be able to communicate all of your ideas to your executive team and the rest of the company. Does that last task sound daunting? Here is some help from an expert on engaging multimedia presentations.

  •  
  • How to Talk to Leaders and Employees About Compensation

    How to Talk to Leaders and Employees About Compensation

    Here on Compensation Today, I often encourage HR pros and business leaders to take more time with their compensation planning. And, with our PayScale clients, we carefully break down the process and go over every detail. But, then what? It’s then time to carefully communicate the results with the rest of the company. And, that process is often done too quickly. I believe that if we don’t spend as much time and energy communicating about our compensation system as we do with design and implementation, then it will almost certainly fail.

  •  



SEARCH
GET PAYSCALE NEWS
Sign up for the latest tips and tricks in compensation from PayScale.
Sign up for PayScale News


BRIGHT POSTS

Career News
SOCIALIZE WITH US
CATEGORIES