Compensation trends: Modern perspectives on pay

The top 4 problems with pay for performance

<img src="http://www.payscale.com/cms-images/default-source/b2b/blogheader9_4.jpg?sfvrsn=4" alt="Pay for performance image" title="BlogHeader9_4"><p> <a href="https://plus.google.com/115301125688955669806? rel=author">Crystal Spraggins,</a>&nbsp;SPHR </p><p>Pay for performance or <a href="http://www.businessdictionary.com/definition/performance-related-pay.html">performance-related pay</a>, as it’s also called, is a relatively simple concept. Under a performance-related pay philosophy, employees are offered financial incentive for meeting certain predetermined and quantifiable goals. </p>

Autocrat, Democrat, or Servant: What's your leadership style?

<img src="http://www.payscale.com/cms-images/default-source/b2b/blogheader8_27-2.jpg?sfvrsn=3" alt="What kind of leader are you image" title="BlogHeader8_27-2" sfref="[images]04d2059b-def5-6347-a9d2-ff00007054ad"><p><a href="https://plus.google.com/115301125688955669806? rel=author">Crystal Spraggins,</a>&nbsp;SPHR </p><p><p>Every leader has a leadership style. And leadership styles have consequences.</p> <p>According to PayScale’s <a href="https://resources.payscale.com/hr-2014-compensation-practices-report.html">2014 Compensation Best Practices</a> report, most employees leave their jobs for “personal reasons” or for higher pay.&nbsp;Pay is important, of course. Despite how much we may like our jobs, if our employers couldn’t pay us, we’d likely quit.</p>

Engaged employees – your key to strong retention

<img src="http://www.payscale.com/cms-images/default-source/b2b/blogheader8-3.jpg" alt="image: Are your workers engaged?" title="blogheader8-3"><p><a href="https://plus.google.com/102099066436032147105? rel=author">Jessica Miller-Merrell,</a>&nbsp;blogging4jobs </p><p>According to a <a href="http://www.forbes.com/sites/cherylsnappconner/2013/06/12/how-social-media-turns-leadership-facilitation-on-its-head-and-10-additional-secrets-for-facilitation-success/2/">recent Gallup poll</a>, 86% of engaged employees say they very often feel happy at work, as against 11% of the disengaged and 45% of the engaged say they get a great deal of their life happiness from work, against 8% of the disengaged. It’s no secret that a happy and engaged employee will stay with your company for a long time. Numbers don’t lie and as you can see from the stat above, 86% of engaged employees are happy at work. This number proves that engaged employees is your key to a strong retention rate. </p>

Four raises a year

<img src="http://www.payscale.com/cms-images/default-source/b2b/blogheader8753B77FD846D.jpg" alt="Four raises a year image" title="blogheader8" sfref="[images|OpenAccessDataProvider]b837059b-def5-6347-a9d2-ff00007054ad"><p><a href="https://plus.google.com/u/0/111048221756567587195? rel=author">Tessara Smith, </a>&nbsp;PayScale </p><p>One of the latest trends in employee compensation and motivation is giving employees four (small) raises a year as opposed to one large raise. Many companies have become strong proponents of this innovative payment strategy and executives are dumping the annual salary review in favor of giving out raises and bonuses a couple times per year. This begs the question, are quarterly raises a good idea for your company?</p>

Employee motivation strategies that don’t work

<img width="610" height="175" src="http://www.payscale.com/cms-images/default-source/b2b/header_unsuccessfulemployeemotivation.png" alt="header_UnsuccessfulEmployeeMotivation"><p><a href="https://plus.google.com/u/0/111048221756567587195? rel=author">Tessara Smith, </a>&nbsp;PayScale</p><p>When you type in the words employee motivation into Google's search bar, an overabundance of articles pop up suggesting ways to coax your disengaged employees to “check back in”. You read article after article and the themes seem to get a bit redundant to say the least. If you are an experienced manager or executive, chances are you have a good grasp on what works in terms of keeping motivation in your office alive. Still there are a lot of ideas floating around out there about <a href="http://www.forbes.com/sites/kensundheim/2014/01/30/hiring-motivated-and-engaged-employees/" title=" class=" target=" rel="noopener">how to maintain employee’s desire</a> to keep doing phenomenal work for your company. What most fail to mention in their articles however are employee motivation strategies that don’t work.&nbsp;</p>

Why you need a code of ethics policy

<img width="610" height="175" src="http://www.payscale.com/cms-images/default-source/b2b/header_workplaceethics.jpg" alt="header_workplaceEthics"><p><a href="https://plus.google.com/115301125688955669806? rel=author">Crystal Spraggins,</a>&nbsp;SPHR </p><p>In “<a href="http://blogs.hbr.org/2014/01/research-we-should-speak-up-about-ethical-violations-more-often/">We Should Speak Up About Ethical Violations More Often</a>,” Joseph Grenny makes a somewhat surprising claim.</p> <p>Whistleblower laws aren’t the way to more ethical companies, he says. Instead, leadership needs to develop a culture that encourages employees to speak up—as a matter of course—about all the “minor” transgressions occurring in workplaces every day. When that happens, Grenny hypothesizes, major ethical breaches will be less likely to occur.</p>

Should pay be linked to performance?

<img width="610" height="175" src="http://www.payscale.com/cms-images/default-source/b2b/header_paylinkperformance.jpg" alt="header_PayLinkPerformance"><a href="https://plus.google.com/102099066436032147105? rel=author">Jessica Miller-Merrell,</a>&nbsp;blogging4jobs<p>There are two very different schools of thought when it comes to whether or not pay should be linked to performance. We’ve seen the pay for performance option take off and reach an all-time high and in fact, <a href="https://resources.payscale.com/hr-2014-compensation-practices-report.html" title=" class=" target=" rel="noopener">54 percent of companies reported</a> that they were giving performance-based increases in 2013. As with anything, it has its positives and negatives, leaving the question of whether or not pay should be linked to performance still up in the air. </p>

Interpreting the stats: tips for analyzing employee turnover

<img width="610" height="175" src="http://www.payscale.com/cms-images/default-source/b2b/header_analyzeemployeeturnover.jpg" alt="header_AnalyzeEmployeeTurnover"><p><a href="https://plus.google.com/102099066436032147105? rel=author">Jessica Miller-Merrell,</a>&nbsp;blogging4jobs </p><p>I have to admit, I am not a big sports fan. I mean sure, I enjoy the excitement and social aspect of cheering for your team, following favorite players and celebrating a victory, but the minute I hear the SportsCenter hosts spouting off numbers and comparing those numbers to other numbers, which they reference with previous numbers and anticipated numbers, I’m out. I typically love a challenge but this is one area where I am fine with not understanding what they’re talking about and not attempting to understand what all that means. However, the truth is, those who understand the stats are better connected to the game. They understand what’s typical, what’s out of the ordinary, whether or not a player’s game was good or bad and what they can usually expect from a team. </p>

Five reasons to be afraid of employee turnover

<img width="610" height="175" src="http://www.payscale.com/cms-images/default-source/b2b/header_notscaredofturnover.jpg" alt="header_NotScaredOfTurnover"><p><a href="https://plus.google.com/102099066436032147105? rel=author">Jessica Miller-Merrell,</a>&nbsp;blogging4jobs </p><p>Sometimes, turnover is a downright scary word. We hear it and automatically get visions of unhappy employees exiting in droves, leaving us high and dry and always on the search for new employees. Some of us even see our jobs start to flash before our eyes as disapproving executives ask us to answer the question of why the company is experiencing turnover. While most HR professionals know that turnover isn’t the worst thing an organization can experience, there aren’t many who would argue its selling points either. However, it’s a natural part of any workforce and in some cases is actually a positive thing. Take a look below to see why turnover doesn’t have to send you running for cover.</p>

How does the changing minimum wage affect your compensation strategy?

<img width="610" height="175" src="http://www.payscale.com/cms-images/default-source/b2b/header_hotwater.png" alt="header_HotWater"><p><a href="https://plus.google.com/111113068527266071578? rel=author">Mykkah Herner, </a>M.A., CCP, PayScale </p><p>There has been a lot of talk about increasing the minimum wage, at the federal, state, and city levels. In Seattle, headquarters of PayScale, we just <a href="http://www.nytimes.com/2014/06/03/us/seattle-approves-15-minimum-wage-setting-a-new-standard-for-big-cities.html?_r=0" title=" class=" target=" rel="noopener">passed an ordinance increasing the minimum wage</a> to $15/hour within 3-7 years depending on employer size. Of course there has been debate on both sides of the law. Can small business owners afford to absorb the increase? What will happen to the people we used to pay at $15/hour? But also, how can Seattle call itself a forward-thinking city if the minimum wage is not a livable wage? I probably should have been born a Libra because I fundamentally understand both sides.</p>

Is pay for performance the best form of compensation?

Want to know how to inspire and retain employees? Get Pay for Performance right

<img width="610" height="175" src="http://www.payscale.com/cms-images/default-source/b2b/header_payforperformanceA47B1E18AC46.jpg" alt="header_PayForPerformance"><p><a target="_blank" rel="author noopener" href="https://www.payscale.com/author/tess-c-taylor-phr-the-hr-writer" style="line-height: 1.5;">Tess C. Taylor, PHR, The HR Writer</a></p><p><span>The hallmark of a successful organization is one in which employees happily produce top results each day and do this organically without a lot of “hand holding” from management. However, what is the secret to attaining this level of greatness? </span> </p>