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Archive for the ‘Pay’ Category
HR Mythbusters: The Money Edition
May 26You probably hear a lot of crazy tall tales and exaggerations about money in the workplace. It’s hard to tell which is fact and which is fiction. But at KnowHR, we’ve got you covered. We decided to do some research and put a few of these common myths to the test. Consider these three mysteries officially solved.
MYTH: Raising employee salaries makes employees substantially happier.
BUSTED
For those of you who still think money can buy happiness, get on board—it doesn’t. This 2006 Princeton University study proved that for most, any added happiness from a salary increase was “mostly illusory.” Though important for certain things, your income makes nearly no difference on your mood when undergoing typical daily tasks. If you really want to make work better, focus instead on those little moments.
MYTH: On average, women make less money than men.
CONFIRMED
Yup, this one’s true. A recent New York Times article linked to this study from the Institute for Women’s Policy Research, which shows women still only earn about 77 cents for every dollar that men earn. Although this is a significant increase from 1965 (where women only earn 59 cents on every male-earned dollar), this disparity is still quite real.
MYTH: Getting a B.A. in English yields the worst salary payout.
BUSTED
Actually, it’s social work. In fact, according to this 2009 pay salary report, an English B.A. is hardly the worst possibility—and falls above other undergraduate majors, such as education, Spanish, music and theology. On the flip side of things, an engineering degree takes the top of this list. Big surprise there.
Got an at-work myth you’d like us to investigate? Join the conversation below.
Get Your Employees to Do What You Want Them to Do. Today.
Nov 13Ever have those moments at work when you feel like you just aren’t getting through to your employees? The morale may seem a bit lower, people may be responding sluggishly or the quality of work may be faltering.
It could just be a preemptive case of the winter blues. (And if that’s the case, I’d suggest buying a couple of these light therapy lamps for your workplace. We just bought a couple of them for our office, and they do wonders for your mood!) But if you think it’s something a little deeper than seasonal sadness, maybe you need to do something to recharge the energy at work.
We asked Philadelphia area workers about their favorite strategies for boosting workplace morale. Here’s what they said.
Build relationships with your coworkers
“I’d suggest a team outing to get people together,” said Greg, a data consultant. “Then it seems like we’re all working toward a common goal.”
Play to the strengths of your employees
Tom, an owner of a train station café, explained that he chooses jobs for his employees based on their strengths, letting the more extroverted employees work at the cash register while the more introverted ones work behind the scenes.
“You don’t want to put people in a position where they’re going to fail,” Tom said. “If you’re a smart supervisor, you find what people do best and you have them do that.”
Tell your employees what they’re doing right
“I like positive reinforcement, even if there’s something I can do better,” said Nick, a computer installer. “It’s better for my state of mind.”
Use money as an incentive…
“We get rewarded if you get a credit card application,” said Angela, who works as a customer service associate at a retail store. Angela said that top performers are rewarded with items from their store catalog, which includes things like coffee pots and blenders. “I really don’t like the job, but the rewards make it better.”
…but don’t be afraid to get a little creative
“We don’t have a big budget for monetary rewards, so we’ll use a non-monetary rewards system, like getting a day off or extra time for you lunch break, if you perform in the top 10 percent,” said Andy, an underwriting manager.
Work toward one collective goal
“We haven’t had any turnover [in five years], so we really don’t have to worry about morale,” said Shane, who works as an inspections leader for his organization. “I think that’s because everybody just firmly believes in the mission.”
What do you think of their ideas? Have any more to add? Join the conversation to let us know what works—and what doesn’t—to encourage workplace motivation.
The Rule of Martinis Applied to Pay
Oct 8The Rule of Martinis: One is too many, two are just right, and three are not enough. — James Thurber
I love that quote. I’ve felt that way about pay, too. I mean, if an increase or a bonus is too small, you might as well forget it. Employees feel under appreciated. If they’re too much, well…then you’re getting TARP funds. But if they’re just right, that’s Baby Bear territory. Think about how much better your compensation design would be if you applied the Rule of Martinis.
You can buy this poster at All Posters.
A New Standard for Bonus and Retention Plans
Mar 24I’ve been doing a lot of thinking and talking about the AIG bonus debacle over the past few days. All that made me say there should be a new standard for bonus and retention plans:
- Your bonus plan must be explainable in plain English.
- You should be proud to explain to your best friend and your mom how your bonus plan works and what behaviors it’s designed to motivate.
- If your retention plan requires a bevy of lawyers and days of PR prep to talk about it in the media, you had better think twice.
When it all comes down to it, simplicity wins. Anything more than that has unintended consequences.
AIG: Where Pay-for-Performance Goes to Hell in a Handbasket
Mar 18I’ve spent a good chunk of my career communicating about executive compensation and pay-for-performance. I believe in the variable pay model — it works. So, I’ve held back for a while commenting on AIG’s bonuses. As a friend told me yesterday, “We don’t know all the facts.” I’m sure there are many good people working at AIG. But I have to tell you, this situation with AIG paying bonuses to people who are in the unit that caused all the problems and to people who have left is where pay-for-performance goes to hell in a handbasket.
A NYT article this morning lays out the details:
The bonuses that the American International Group awarded last week were paid to 418 employees and included $33.6 million for 52 people who have left the failed insurance conglomerate, according to the office of the New York attorney general.
THEY PAID “RETENTION” BONUSES TO 52 PEOPLE WHO LEFT THE COMPANY.
First rule of pay communication: Don’t lie.
If you don’t get that one right, all the rest of the rules don’t matter.
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