Posts

Is It Fair that Corporations Pay Remote Workers Less?

I recently read a story that gave me pause. And then I looked around and unearthed more. Remote employees may have their salaries cut simply because of where they work. Hmmm.

After all we have learned about remote working from the pandemic, I hope that organizations are inspired by the findings. Many leaders who have trust issues and fear around a remote workforce were forced to try something new. And, overall, remote working took off!

However, a new trend may be arising with corporate giants like Google, Twitter, Facebook, and LinkedIn that seems ridiculous. They are finding ways to pay remote workers LESS than those who come into the office.

Thought leader Jill Christensen states: “Every organization must decide how they will manage post-pandemic salaries. Will you pay the same regardless of where employees live or cut pay based on the employee’s geographic location? Only you know what’s right for your firm, but I advise that you think long and hard about the true cost of slashing pay. You may end up losing much more than what you save in payroll dollars. Employees may disengage, costing you productivity, retention, quality defects, creativity, sick days, and customer satisfaction. Is it really worth it?”

According to The Remote Work Pay Cut Class War, “Reuters reported that one employee, working from a county outside of Seattle, would see a 10% pay cut if they chose to work remotely, and someone would get a cut as high as 25% if they lived in Lake Tahoe. Specifically, those who choose to work remotely but live near the office wouldn’t see a pay cut, despite not going into the office.”

Is it fair?

With the excuse of “cost of living,” this decision will be justifiable to many. However, is this truly fair to pay remote workers less? The article explains: “This may make sense for a local business selling to locals, but it doesn’t make sense if someone is doing work on the computer – and it doesn’t make sense when you’re deciding to pay someone less money to do exactly the same work.”

Is this move all part of a bigger picture about deeming some employees worth more than others arbitrarily? We all know that it’s more expensive in San Francisco than in Houston. But when it’s the SAME job, does it matter?

“If you pay people working remotely the same amount of money as they’d make in the Bay, you likely can’t justify the lower salaries you likely pay in Detroit, or Chapel Hill, or Pittsburgh,” added Zitron.

In the world of work, we have taken giant strides toward fairness, flexibility, and freedom. This seems like a giant step backward. Do you deserve more pay just for parking in the lot at the expensive headquarters? (It’s argued in the comments of Zitron’s article that companies like Google have sunk so much money into their campuses that they are seeking justification for filling them up again.)

The new class

It’s also being defined as creating a new class system–defining team members as “in the office” or “remote.”

“They are deliberately creating a class system within their companies, both in the division of who is and who is not in the office and who makes the most money and one has to wonder if elder Googler Urs Hölzle will take a 25%+ pay cut now that he lives in New Zealand,” adds author Ed Zitron.

The back-and-forth rationale of this topic can be quite thought-provoking. However, it still just doesn’t seem fair to me. And what about the sustainable nature of non-commuting? Saving gas, energy, and precious time are often hailed as “wins.”

Suddenly those are forgotten benefits because someone decided they want bodies in seats again. Hmmm.

We are not past pay inequality.

Pay inequality has long been a hot topic. Very recent research indicates that it still needs to be top of mind. I obviously can’t address pay inequality all in one go, but it’s important to look at the big picture.

According to the Pew Research Center, “In 2020, women earned 84% of what men earned, according to a Pew Research Center analysis of median hourly earnings of both full- and part-time workers. Based on this estimate, it would take an extra 42 days of work for women to earn what men did in 2020.”

An article posted by SHRM states, “PayScale analyzed differences in earnings between white men and men of color using data from a sample of 1.8 million employees surveyed between January 2017 and February 2019.”

“On average, black men earned 87 cents for every dollar a white man earned. Hispanic workers had the next largest gap, earning 91 cents for every dollar earned by white men. On the other side of the earnings spectrum, Asian men typically earned $1.15 for every dollar earned by a white male worker.”

“Cost of living”

I found a very informational piece by NoHQ on how to pay remote workers, which explained some critical economic factors that play a role in remote workers being paid less. One was Compensating Differentials.

“’Compensating differentials’ is a term in labor economics that refers to the relation of wage rates and the tolerance of undesirable conditions of a job. For example, some countries or cities are naturally more desirable (or undesirable) than others–due to weather conditions, real estate prices, local culture and diversity, and infrastructure.

“The likeability of an area will impact a worker’s pay tolerance to live there. When it comes to remote working, compensating differentials may have less influence on wage rates, as remote workers can move wherever they like. Exceptions apply when remote workers can only move within a certain geographical zone in order to work remotely.”

They also pointed out that while it may be cost-effective to adjust salaries, it could appear discriminatory and unjust. This can result in poor employee morale and weaker loyalty–something to watch out for!

Key takeaways

It’s a significant challenge to measure the “cost of living.” Yes, there are governmental and research resources, but it’s very personal and ever-changing. Have you seen the real estate spikes in places like the Denver metro and Miami? I wonder if everyone there is getting a pay raise. Hmmm.

I genuinely hope enormous, powerful companies set the right precedent. They should pay remote workers equally because other companies will use them as an example. It is inevitable.

 

Clayton Cardinalli

Employee Retention: 5 Ways to Keep Your Team So Satisfied They Stay

There are many reasons employee retention should be a top priority for any business. Of course, you want to keep your top employees satisfied, so they continue their inspired work and help your company thrive. Plus, good employees who like their employer more often refer top-notch professionals to your organization.

But employee retention is more than that. Between putting out job listings, juggling paperwork, interviewing, and onboarding, there is a lot of time, money, and effort that goes into hiring new employees. All that distracts you from getting other work done.

So how do you improve employee retention in these crazy times?

The answer is easier than you may think. And much of it revolves around putting your employees first.

Employee Retention Starts on the First Day

Employee retention starts on day one. Fail to show new employees you care about them (and their career) from the start, and many will already have one foot out of the door. The human resources and management teams must promote the fact that they are there to help the employee thrive and that their door is always open for questions and concerns.

From the first morning on the job, show them they are more than just cogs in the machine. Occasionally remind them why their job is essential to the company. Help them co-create a career plan. Or, even better, as they learn the ropes help lay out a trajectory for their career. By setting up a path for success, the employee will stick around longer. After all, they know future growth opportunities await.

Once they have the hang of their initial job, introduce a few new responsibilities included in the job descriptions of potential future positions. That way, the employee knows you are serious about executing the career plan.

Once orientation is complete, don’t just throw them in the water, sink-or-swim style. Instead, pair the employee up with a dedicated associate so the new employee can turn to them when they have questions. Mentoring programs can be powerful benefits for both the new employee and their mentor. At consulting firm Bain & Company, an increased push in mentoring has resulted in all 8,000 consultants having a mentor.

This mentoring program has led to significant and tangible advantages for Bain. Among them, Bain has doubled the number of women in leadership positions.

Benefits Matter

Even in “normal” times, many employees choose their employer-based mostly on the benefits offered. This decision-making process is especially prevalent during the pandemic when people live what sometimes seems like upside-down lives.

But benefits don’t stop at healthcare.

For example, allowing flexible schedules can do wonders for employees. If practical, suggest a later start time to get their children ready for school or assist with home-schooling. Also, allow time for doctor’s visits and care of an extended member of the family. Not only do you show you care about them as people, you encourage a healthy work-life balance.

Of course, a lot of people still count on their job for health insurance. So, have a comprehensive plan that protects them and their income if they are hurt or sick. Again, if practical, offer dental and vision insurance too. Perhaps most important in these difficult times, promote preventive healthcare by offering wellness programs. Include gym memberships, stress-relief management classes, and incentives for a healthy lifestyle (which could include a discount on their insurance deductible).

Paid time off can often be challenging to manage in work at home situations. And yet that paid time off is earned and necessary for many reasons, including mental health. In response to that challenge, Airbnb offers travel credits in addition to significant time off. These perks, and others, helped the company become a 2016 best place to work in CareerBliss’s annual survey.

Compensation and Perks

Compensation is also crucial for employee retention. If we don’t pay fairly and equitably, employees will find a different company that provides what they need. Use outside resources like Salary.com to see the average pay for similar positions in your area of the world. If you can afford to pay them the same, so they aren’t tempted to go elsewhere, make that effort.

Finally, don’t forget the perks. These are the unwritten benefits that employees tell their families about at the end of the day. These perks could be extra paid time off for a job well done or discounted tickets to an amusement park. For employees of Treehouse, an education technology company, one major perk is a four-day workweek. Treehouse shortened the workweek in 2006. The company reports employees have been happier and more productive ever since.

Even the smallest perks will motivate them to do their best work. So, make it a point to buy them a coffee on a random Thursday or take them out to lunch after completing a big project.

Culture and Communication

In the end, the best way to retain employees is to create a workplace they are excited to return to day after day. Specifically, it is about having a safe, warm, and welcoming company culture that encourages growth. It is also about living, rather than just stating, positive values you act upon every day.

A caring culture also requires active communication from management to employees on a personal level. Don’t wait until the annual review to see how your staff is doing. Instead, practice regular check-ins. Review their work; offer praise and validation at every opportunity. Take the time necessary to answer any questions. And see where they are on their career plan and make modifications if necessary. Keep an open mind during these check-ins and actively listen to what the employees have to say.

Yes, employee retention is incredibly important. Luckily, retention efforts are not overly difficult for a company that chooses to make an intentional effort.

Make an employee’s day today – and avoid the hassle of unneeded turnover tomorrow.

#WorkTrends Recap: Legislation of Pay Equity

According to the U.S. Census, the median annual pay for a woman who holds a full-time job is $40,742, but the median annual pay for a man who holds a full-time job is $51,212. This means that if an employer bases compensation on salary history, a woman may find herself chronically underpaid.

Laws in eight jurisdictions have been passed that prohibit employers from asking for salary history as part of the employee screening process. Many more states and cities are in the process of developing similar legislation. This is a step towards narrowing the earning gap between women and men.

HireRight philosophically believes that eliminating salary history is the right thing to do, regardless of legislation.

Today, we talked about the fact that sometimes a potential employee wants to disclose their salary history. It is important that organizations have a procedure for facilitating this conversation, and doubly important for outsourcers to have a strategy for dealing with this conversation so they don’t inadvertently make the company responsible for violating the law (and therefore being subject to fines).

Dawn Hirsch and Alonzo Martinez helped our audience understand that pay equity considerations are just one step towards making work more equitable for everyone (and for making the interview process better by focusing on what matters: the candidate’s qualifications for the job itself).

Here are a few key points Dawn and Alonzo shared:

  • Elimination of salary history questions is a best practice for an HR department
  • Pay equality legislation is gaining momentum nationwide
  • Compliance is the cornerstone of a good candidate experience
  • The Pay Equity Act will be more challenging for search firms than for companies themselves

Did you miss the show? You can listen to the #WorkTrends podcast on our BlogTalk Radio channel here: http://bit.ly/2hC6pEk

You can also check out the highlights of the conversation from our Storify here:

Didn’t make it to this week’s #WorkTrends show? Don’t worry, you can tune in and participate in the podcast and chat with us every Wednesday from 1-2pm ET (10-11am PT). (Note: We’ll be taking November 22 off due to the Thanksgiving holiday.)

Remember, the TalentCulture #WorkTrends conversation continues every day across several social media channels. Stay up-to-date by following our #WorkTrends Twitter stream; pop into our LinkedIn group to interact with other members. Engage with us any time on our social networks, or stay current with trending World of Work topics on our website or through our weekly email newsletter.

Photo Credit: Rosmarie Voegtli Flickr via Compfight cc

#WorkTrends Preview: Legislation of Pay Equity

As a provider of employment screening services, HireRight has worked for years to refine the process of accumulating the information employers need to make effective hiring decisions while still respecting the needs of candidates.

One area that affects the employee screening process directly is pay equity. According to the U.S. Census, the median annual pay for a woman who holds a full-time job year-round is $40,742, while the median annual pay for a man who holds a full-time, year-round job is $51,212. If an employer bases compensation on salary history, a woman may find herself chronically underpaid.

It’s safe to say 2018 will be a year characterized by change. HireRight, which has been a leader in the effort to remove salary history from screening tools, is perfectly positioned to help us figure it all out.

This #WorkTrends chat will give an overview of pay equity legislation and how it has the potential to help bring parity to our nation’s salary picture. We will touch on the information in the HireRight Pay Equity Legislation eBook and learn how pay equity changes affect the interview process too.

Join #WorkTrends host Meghan M. Biro and her guests, HireRight Chief Human Resources Officer Dawn Hirsch and Associate Counsel for Compliance Alonzo Martinez on Wednesday, November 15, 2017, at 1 pm ET as they discuss advances in pay equity and how laws are evolving in this area.

Legislation of Pay Equity

#WorkTrends Preview: Legislation of Pay EquityJoin Meghan and HireRight guests Dawn Hirsch and Alonzo Martinez on our LIVE online podcast Wednesday, November 15, 2017 at 1 pm ET | 10 am PT.

Immediately following the podcast, the team invites the TalentCulture community over to the #WorkTrends Twitter stream to continue the discussion. We encourage everyone with a Twitter account to participate as we gather for a live chat, focused on these related questions:

Q1: How will pay equity legislation lend itself to better hiring? #WorkTrends (Tweet this question

Q2: How will eliminating questions of salary history create a more diverse workplace? #WorkTrends (Tweet this question

Q3: What motivates employers to rely heavily on salary history information? #WorkTrends (Tweet this question

Don’t want to wait until next Wednesday to join the conversation? You don’t have to. I invite you to check out the #WorkTrends Twitter feed and our TalentCulture World of Work Community LinkedIn group. Share your questions, ideas and opinions with our awesome community.

Photo Credit: psalmy2 Flickr via Compfight cc

#WorkTrends Recap: Modern Compensation: Putting People First

When companies start to work on their compensation plans, they often do so with spreadsheets and formulas, far removed from either the people impacted by compensation or the organizational objectives. Modern compensation brings people front and center in the pay business, creating a win/win situation between organizations and individuals.

On today’s  #WorkTrends show, we were joined by special guest Tim Low from PayScale. We discussed the idea of putting people first in compensation plans and why that makes a difference in business.

Here are a few key points Tim shared:

  • How to use modern compensation practices to engage, motivate and reward top people.
  • How compensation can be a team sport, communicated transparently across the organization.
  • Why compensation should be a win/win, not a battle, between employee and employer.

Missed the show? You can listen to the #WorkTrends podcast on our BlogTalk Radio channel here: http://bit.ly/2afsbcO

You can also check out the highlights of the conversation from our Storify here:

Didn’t make it to this week’s #WorkTrends show? Don’t worry, you can tune in and participate in the podcast and chat with us every Wednesday from 1-2pm ET (10-11am PT). Next week, on July 27, host Meghan M. Biro will be joined by Chris Voss, former FBI Lead International Hostage Negotiator, who will help us explore and understand the art of negotiation.

The TalentCulture #WorkTrends conversation continues every day across several social media channels. Stay up-to-date by following the #WorkTrends Twitter stream; pop into our LinkedIn group to interact with other members; or check out our Google+ community. Engage with us any time on our social networks, or stay current with trending World of Work topics on our website or through our weekly email newsletter.

Photo Credit: reputationtempe via Compfight cc

#WorkTrends Preview: Modern Compensation: Putting People First

When companies start to work on their compensation plans, they often do so with spreadsheets and formulas, far removed from either the people impacted by the compensation plans or the organizational objectives. Modern compensation brings people front and center in the pay business, creating a win/win situation between organizations and individuals.

Next week on the #WorkTrends show, we will be joined special guest Tim Low from Payscale to discuss the idea of putting people first in compensation plans. Here are a few things Tim is expected to share:

  • How to use modern compensation practices to engage, motivate, and reward top people.
  • How compensation is a team sport, communicated transparently across the organization.
  • Why compensation can be a win/win, not a battle, between employee and employer with fair pay.

Modern Compensation: Putting People First

#WorkTrends Logo Design

Tune in to our LIVE online podcast Wednesday, July 20 — 1 pm ET / 10 am PT

Join TalentCulture #WorkTrends Host Meghan M. Biro and guest Tim Low from Payscale as they discuss how to put people first in compensation.

#WorkTrends on Twitter — Wednesday, July 20 — 1:30 pm ET / 10:30 am PT

Immediately following the podcast, the team invites the TalentCulture community over to the #WorkTrends Twitter stream to continue the discussion. We encourage everyone with a Twitter account to participate as we gather for a live chat, focused on these related questions:

Q1. What are the benefits of a people-focused compensation model? #WorkTrends (Tweet this question)

Q2. What are some signs that a modern compensation model is in demand? #WorkTrends (Tweet this question)

Q3. In what ways can compensation be a win/win for employees and employers? #WorkTrends (Tweet this question)

Don’t want to wait until next Wednesday to join the conversation? You don’t have to. We invite you to check out the #WorkTrends Twitter feed, our TalentCulture World of Work Community, LinkedIn group, and in our TalentCulture G+ community. Feel free to drop by anytime and share your questions, ideas and opinions. See you there!

Subscribe to our podcast on BlogTalkRadio, Stitcher or iTunes:

BTR stitcher_logoItunes_podcast_icon

 

 

Join Our Social Community & Stay Up-to-Date!

Passive-Recruiting

Photo Credit: Outsourcinghub India via Compfight cc

The Pay Business is the People Business

The Modern Comp Manifesto

Pay is not compa-ratios—it’s Karen from accounting, wondering how she will pay her skyrocketing rent—when she just got passed over for an expected raise.

Pay is not merit increases—it’s James from marketing, doing the happy dance–because he just got a raise and can finally enroll his kids in dance class.

Pay not job grades—it’s Amber from customer service’s shocked face—when she finds out how much Rachel (who just started) is making compared to her.

Too many compensation managers and compensation programs gloss over the fact that they exist to serve the business in attracting and retaining people. In this world of knowledge-driven work and innovation, where companies’ competitive advantage is primarily determined by who can win in making their organization a place where the best people want to be, a compensation program that works needs to embrace this idea.

When you stop to think about it, the pay business is really the people business. At PayScale we keep this notion central in all that we do to support companies in doing Modern Compensation. How do you keep people central in your pay plans? Keeping people front and center unpacks to three main notions: be fair, be transparent, and be modern.

Pay Scale Graphics

Be Fair: Pay them right

Pay Equity laws are on the rise, with California taking the lead in January 2016, and many states following suit. That said, pay equity and pay fairness aren’t the same thing. Fair isn’t necessarily equal. Pay equity means ensuring that you’re not discriminating in your pay practices, especially on the basis of gender. Paying fairly is a much broader concept, one that resonates especially well with the millennial generation. Fair pay differentiates pay based on factors like performance, skills, education, experience, and more.

  • Defend your pay decisions with data. One way to both ensure and demonstrate that you’re paying fairly is to base your pay on current and accurate market data. Showing market reports to employees enables productive conversations about the expectations of the role and room for professional development.
  • Comp can be a win/win, not a battle, between employee and employer. Employees and employers are in an ongoing relationship where they exchange value. Employers provide total rewards and employees exert effort. This is the “deal.” Both groups are always doing mental math to decide if the deal is still fair and still worth it.
  • Be intentional: pay inequity happens when you aren’t looking. Plan to audit your pay practices regularly. At the very least make sure you’re in bounds with the law. Then go beyond that to check for compression, appropriately rewarding those who deliver results, and those roles that contribute most to your organizational priorities.

Be Transparent: Tell them the truth

Perception of pay has a huge impact on employee satisfaction and intent to leave. That said, in a survey PayScale conducted of 71,000 people, we found that most people don’t actually know if they’re paid fairly. Of the people surveyed who were actually paid above market, 80% believed they were either below or at market. This is huge. In another survey of 550,000 respondents, we identified that 82 percent of people were ok with low pay if the rationale is explained to them. The why matters, and it’s up to employers to start sharing that why transparently with their employees.

  • It doesn’t have to be all or nothing. Transparency is actually a spectrum from employees knowing only their own pay, to sharing the comp strategy, to sharing pay ranges, to radical transparency at the other end. Organizations need to identify the level of transparency that works best for them, and push the envelope a bit. Employees will thank you.
  • Comp is a team sport. Most conversations about compensation happen between managers and employees, not between HR and employees. Comp discussions are carried out across the organization, and it’s up to HR to coach everyone to play well.
  • People leave over misinformation, not pay. Assuming that pay is fair, people are more likely to leave organizations when they don’t know what’s going on.

Be Modern: comp for today and tomorrow

A lot of you are doing comp like it’s 1999 (or 1969). Compared to other functions in most organizations, compensation management is behind. Marketing has gone from broadcast advertising with little measurement of impact to a sophisticated connection of programs to revenue using predictive technologies and automation; Finance has gone from a paper ledger to a 5 day close with smart application of technology. Much of the day to day work of compensation management is very much that same as it was two or three or four decades ago. The main constant in today’s workplace is change—and the pace is quickening. The economic landscape remains uncertain, technology alters the nature of work and talent, and our workforces themselves are continuing to evolve. Modern compensation taps the power of data and technology to motivate and engage the workforce we have and the workforce we will have.

  • Comp smarter not harder. Technology can help increase HR’s productivity. Beyond that, it improves HR’s ability to be a strategic partner. Not yet ready to embrace technology to build, track, and improve your comp plans? Your competition is.
  • Always-on and real-time. Our organizational priorities are always being revised, updated, and improved; always-on data makes it easier to price out that software engineer job with the newest skills. At the same time, employees get information about comp in a whole host of ways, and we don’t always get to decide when they’re going to knock on the door for a comp conversation; in this real-time situation, we need reliable data at our fingertips.
  • Comp that supports business strategy. Gone are the days of compensation plans that sit off to the side of the central focus of the organization. Modern compensation professionals must be more than just aware of organizational goals, they need to find ways to drive those goals to fruition by aligning compensation plans and getting creative about variable pay.

Don’t ignore your pay brand. How you pay, how you communicate about pay, and the sophistication you bring to matching pay to your business goals matter to how you are perceived in the market. Being fair, transparent, and modern will help your organization keep your best people, find new best people, and perpetuate an organizational culture that makes you an employer of choice. Once you’re a whole company of rock stars, there will be no stopping you.

If you’d like to join a whole community of professionals talking about Modern Compensation; come to Compference. Register today and use code TalentCulture for $200 off registration.
Photo Credit: olympialawpc01 via Compfight cc

What's More Important to Give Employees: A Gift Card or a Pat on the Back?

While many companies use financial compensation to reward employees, there are times when these rewards lose their effectiveness. Here is when to consider ditching the bonus for a simple pat on the back.

While companies are comfortable with giving financial rewards to employees, they often get stuck when it comes to giving meaningful, genuine recognition. Yet recognition is often the more powerful reward, since it speaks to the employee in the language of meaning and personal context, rather than generic gift cards.

What speaks even more volume is creating reward programs with a social component. This approach brings the department or larger organization into the celebration of an employee’s accomplishments, resulting in the most powerful path to building a culture of recognition tied to accomplishments and employee growth.

Rewards vs. recognition – when each makes sense

For the purpose of this discussion, rewards can be thought of broadly as some form of compensation. Compensation may include salary, bonuses, stock, options or even deferred compensation. The point is there’s a formal agreement between the manager and the employee that some level of effort is required, some work product is expected, certain behavior is appropriate and results are desired.

This system works pretty well for most of us, most of the time, but there are times when financial rewards lose their effectiveness. Say your business isn’t growing due to economic or competitive pressures and you don’t have the resources to periodically review and up-level the rewards system. Many employees will find this a disincentive to keep performing at the same level. They may leave for greener pastures, they may develop bad attitudes, become resentful or cynical, even sabotage the workplace with ill-timed comments to customers.

While rewards are a necessary part of the world of work, they are not sufficient. It’s important to get them right and keep up with the market, or you’ll see retention fall and employees disengage. But it’s not the whole ball game.

This is where recognition comes in. In many cases it’s more powerful (assuming your rewards programs are in reasonable shape) to give an employee recognition when he or she excels. Recognition can be as simple as a shout out in a group email or as subtle as a heartfelt handshake. The difference here is it takes an emotional action on the part of the manager to recognize the actions of the employee.

Here are a few times when recognition makes sense:

  • When the person is well-compensated but has done something above and beyond the call of the job
  • When the person makes an effort to set a fine example, say by mentoring a struggling employee
  • When the employee invests him or herself at an emotional level to the success of the organization.

Building a culture of recognition

It’s difficult to build a culture of recognition but it can be done. Christine M. Riordan, writing in the Harvard Business Review, talks about how companies can ‘foster a culture of gratitude.” Certainly gratitude is a component of recognition: If someone helps you reach your sales goal, you’ll feel not only that you hired the right person but also grateful for their contribution to your company. Recognition is, I’d argue, bigger than gratitude alone. Recognition is a celebration of shared values and a shared sense of purpose, clearly communicated and widely understood. If you don’t convey the purpose, mission or how to achieve the goals correctly, many things can go wrong in the organization. (McKinsey Quarterly goes into this more in depth.)

Employee recognition has (at least) five attributes: it’s in the moment, in context, appropriate, authentic, and it’s aligned with the employee’s notion of value.

When financial rewards backfire – and what to do to remedy the situation

We’ve all seen rewards systems based purely on financial rewards backfire. It happens with dismaying frequency when your culture lacks a recognition component. Remember the last time you gave Jim a bonus for hitting a goal, only to find out later that Jim’s team did 90 percent of the work? Remember when you instituted raises after a two year freeze, citing everyone’s hard work? You lost 30 percent of staff within six months. Bet you didn’t see that coming.

Money isn’t everything. To fix a situation where monetary rewards have created friction, you’ll first need to check in with all your managers to get the lay of the land. Find out who’s unhappy, then go to them and ask open questions about what’s bugging them. Then acknowledge the error and fix it. It might mean giving Jim’s team bonuses (after having a few words with Jim about how he handled it), but in other instances you may be able to bring the ship aright with recognition: stand up in front of the group, admit you made an error, and recognize each player for his or her contribution.

Financial rewards put a price on doing the right thing; recognition gives the same action value. I’ll take value every day. In a healthy work culture, value should be the yardstick used to measure accomplishment and determine appropriate recognition.

This article was first published on Entreprenuer.com on May 2, 2014

Photo Credit: Pewari via Compfight cc

Employees Care More About Compensation Than Employers Think

Employees can really only thrive in a great culture. Your team needs to work for a company where they are appreciated. It’s really all about the perks. False, false and false. Employees have needs, wants and aspirations for their career. While these are all important company attributes to consider, they aren’t the only things employees pay attention to when they are on the job search (regardless of if they are already employed). They do care about their salary. They do care about the benefits. They do care about hitting each monetary rung in the corporate ladder, no matter what the most recent blogs might tell you.

Money may not be everything, but it does matter, and here’s why:

Employees Will Quit

While 37% of employees did say the type of work they do is most important to them in a recent Workplace Trends study, 31% said the money they make is most important to them. Employers can give their staff great projects to work on, but at the end of the day, there’s still a chance that employees will leave the company for their talent competitors simply for a higher paycheck.

They might have a bad boss, boring work, or even difficult-to-work-with coworkers, but these are not the sole drivers of searching for a new position. These reasons do instigate the initial thought and possibly even the newfound job search, but they are the decision makers to finding a new position. Crystal Spraggins (@crystalmusings), Workplace Consultant, said:

“No matter how much an employee wants a new job, he or she probably won’t accept another offer until the money is right. And that makes compensation a significant factor in the decision-making process nearly always, regardless of the official survey results.”

Your Team May Underperform

Different people are driven by different perks. For those that are driven by the chance at a raise or this year’s highest bonus, it’s money. The employees who are motivated by time spent at their vacation home, time off is the motivation. Without these incentives, employees may wane in performance or productivity. Laura Stack (@laurastack), Founder of The Productivity Pro, Inc., said:

“What motivates your team members to perform? …That takes time (which may be why so managers ever bother to put such an initiative into action. But if you do, you’ll jump ahead of 90 percent of your colleagues and competitors. You owe it to yourself to take the time to learn your team members well enough to dangle the right carrots when tempting them toward greater productivity… You’re not creating the motivation – you’re cultivating what already exists.”

No, not all employees are not motivated by money, but some are. Talk about their expectations during performance appraisals and even during the hiring process. Tell your employees the expectations from a managerial perspective as well (how they will need to perform and what kind of results they will need to drive) in order to receive their monetary expectations.

Salary Can Make or Break Long-Term Employees

An under average salary might not be a big deal to the employees who love what they do and feel like they are growing professionally. To maintain a competitive employer brand, however, it takes more than just the weekly employee lunch; salary can play a huge role in the employer brand as well as employee longevity. Patrick Ball (@_patrickball), Associate Editor at Care.com, said:

Long-term employees can feel stuck in a position at a company. Make it clear to your employees how you can help them advance in their careers, or you run the risk of losing them. ‘At some point, the employee has to feel the manager is going to help them progress in their career.’”

A raise can help clarify an employee’s strength in their role and their organizations. While there are other important attributes to employee engagement and satisfaction at work, the perks don’t always cut it when there’s a suboptimal salary. Money might not be the driving force to finding a new role, but it can very easily tip the scales. Understand where your employees want to stand financially with the company, or you run the very real risk of losing them to your talent competitors.

10 Surprisingly Easy Ways to Retain Your Employees

Hands down, the most important investment you could possibly have in your company is your employees. Are you investing a large percentage in hiring the right employees? Do you have a winning team? If so, employee retention should be your top priority. Here are 10 surprisingly easy ways to achieve it.

  1. Develop an employee retention strategy
    Don’t leave this to the last minute, or go into it unprepared. You’ll be flying blind. The best way to approach this is with your eyes open, with a plan. Narrow down all the variables when it comes to your company and specifically what your employees need to thrive. Keeping all of these factors in mind will better help you figure out how to approach the situation.
  2. Keep things in perspective
    It’s easy to give in to the mindset that new technology is what will benefit your business most, but what good is that technology without valuable players who really know what they are doing? Having top-notch people on your team is key. Did you know that according to recent studies you can spend up to 21 percent of an employee’s annual salary replacing him or her? The morale of one or two unhappy employees can affect the morale and work performance of the entire company.
  3. Be a good listener
    It’s important to be receptive to your employees. Communicate with them about their needs, and foster an open dialogue about their careers, their objectives, and what is going on with the company. A successful business is fueled by communication, and ignoring your employees could cost you your company.
  4. Value your employees
    Since a company is as good as the sum of its parts, understand how important it is to invest in your company through finding the best people for your team. Once you have them, you have to put emphasis on the importance of cultivating this relationship. Unhappy, dissatisfied employees leads to a high turnover rate, which is bad news for your company. Value them, and they will value you and your company.
  5. Give credit where it is due
    Make sure to pay attention to outstanding work performance and dedication, as well as rewarding it accordingly. This leads to a healthy work ethic and professional relationship with your employees. When they are rewarded for their outstanding performance, they will feel valued. Happy employees equals a productive company.
  6. Foster a good work environment
    There’s nothing worse than dreading going into work because of an imbalanced environment. This can be aggravated by excess stress, pressure, as well as improper distribution of work and resources. Who says work can’t be fun, productive and rewarding? Foster a positive, driven, happy environment, and it will go a long way for your business.
  7. Stop micromanaging!
    Micromanaging should never happen in a successful company. You picked the members of your team for a reason. Communicate rationally and effectively about what you expect for your employees, and make clear, realistic deadlines. When your expectations and goals make sense and are communicated effectively, all you need to do is trust your employees to carry out the work that is expected of them. If you feel the need to micromanage, you have the wrong people working for you.
  8. Differentiate
    Figure out what is most important at work, and strive for the bottom line, while treating your employees well. They deserve the utmost level of respect, as you deserve respect from them. Stop focusing on all the little details and shift your perspective instead toward the bigger picture. When you take control of your company in a graceful, inclusive way, it positively impacts everyone’s work performance.
  9. Treat all your employees fairly, but not all equally
    Many companies make the mistake of treating everyone exactly the same. This is a misconception. The best businesses recognize the strengths and weaknesses of each individual employee, as well as which employees have better work performance. Endeavor to reward your top players primarily, and notice how this positively affects your company.
  10. Get data on your employees
    Even if it is a pain, it is essential to conduct employee surveys. Make sure they follow these guidelines:
  • Anonymity so your employees can feel confident in being completely honest
  • Responding so your team sees that not only do you care what they have to say, but you will endeavor to foster a better work environment by improving, based on their opinions
  • Feedback sharing so your employees will have the utmost sense of open, healthy communication as a company
  • Schedule surveys so you can regularly conduct them. Notice how things change over time. It’s important to be committed to this.

The bottom line is simple: invest in your employees and you invest in your business. When you endeavor to communicate, encourage, inspire and help their careers grow you work to create the best company possible and stay on your “A” game.

About the Author: Ava Collins is an online marketing associate with Hicks Professional Group as well as the IT staffing company’s HR manager.

photo credit: Jakob Nilsson-Ehle via photopin cc

The Rules of Engagement Are Changing: 4 Ways You Can Ride the Wave Successfully

Leaders already know that keeping their teams motivated, engaged and driven to succeed is a demanding task in itself. But in today’s world it’s even harder, because leaders have to keep their people engaged while responding to huge, disruptive changes in how we work and what we care about in the workplace. It’s a big challenge, but the first step to overcoming it is knowing what the changes are. In Hay Group’s new book, Leadership 2030, we’ve identified six “megatrends” that are transforming societies and the global business environment as we know it.

The six megatrends leaders must be prepared for

  • Globalization 2.0 — Economic power is shifting from mature Western economies to emerging markets, so we’re seeing more diverse market needs, more collaboration across countries, and global competition for talent
  • Environmental Crisis — The world is facing a disruptive combination of climate change and scarce raw materials that brings the perfect storm of challenges for businesses: increasing costs, fluctuating values and concerned stakeholders
  • Demographic change — Aging populations are changing the face of the global workforce and exacerbating the war for talent
  • Individualism — Growing freedom of choice is eroding loyalty and forcing organizations to respond to individual needs in an increasingly diverse workforce
  • Digitization — Work is going remote, and the boundaries between professional and personal lives are blurring, as people increasingly live life online
  • Technology convergence — A combination of nano, bio, information and cognitive (NBIC) sciences is set to spur a wave of powerful technological breakthroughs — speeding up the pace of change and creating new product markets

Right now, employee engagement is already a moving target. To take a line from The X-Files, “The future is out there.” To successfully keep people engaged and on track to deliver business results, leaders must respond to trends outside the organization, because they will affect what happens inside it. The six megatrends bring about a multitude of challenges – here we’ve identified four core responses to help you, as leaders, successfully navigate them.

Employee Engagement and the New Imperatives for Leadership

Imperative #1: Instil confidence in the direction your organization is taking

How engaged employees feel is influenced not only by their current work experiences, but also by their view of the future. For people to commit, especially over the long term, they need to have confidence that a company is well-led, heading in the right direction, and well-positioned to deliver products and services they know customers want.  Unfortunately, given the pressures that come with change, communicating regularly about the changes with employees can often slip, leaving them confused about the priorities for the organization. Demand for information often outstrips what you and your managers are able to supply: the consequence is a lack of clarity, which erodes confidence in leadership and strategic direction.

Technology convergence won’t just create new product opportunities; it will also increase the challenge of staying ahead of the curve. And in an increasingly global business environment, new competitors can be expected to emerge regularly. So how can you respond?

As well as having a clear and compelling vision, you need to communicate regularly and personally about changes in your organization and what they will mean for individuals and teams. Making sure you and your peers at all levels know about changes and receive the same messages about them is essential to promote consistent understanding across the organization. Managers in particular play an important “sense-making” role in times of change, helping employees understand new developments in the organization and their implications for teams and job responsibilities. You must make sure that managers at all levels are aware of and engaged with planned changes, and that they understand the importance of reinforcing key messages with their teams. If middle managers and supervisors signal to employees through their words or actions that they lack faith in their leaders, employees’ trust will decline rapidly.

Imperative #2: Have integrity

Socrates said: “Regard your good name as the richest jewel you could possibly be possessed of.” That advice applies to companies just as much as individuals. Consider a quote from Miles White, Chairman and Chief Executive Officer of Abbott: “Today we’re in an all-out war for reputation, our companies are battling – to an unprecedented extent – for our most vital assets: our own identities.” That battle is playing out on many different fronts. Companies are facing increasing pressure from the media and from political and regulatory scrutiny. But increasingly too there is a power shift in play, brought by digitization, toward consumers and employees. A single voice can undermine a company’s reputation. Individuals can make a huge impact with the click of a mouse. And so companies need to be ever more careful in managing their reputation, because hard work to make a good name can be undone in seconds.

To foster employee engagement, you need to give your people the sense that they are contributing to a purpose larger than themselves. The desire to work for an organization that stands for something and makes a difference is not limited to Millennials, but extends across generational groups. So, in a transparent world, where reputation is increasingly at risk, organizations need to prove they operate with a high level of integrity. For leaders, this demands high levels of openness and sincerity, demonstrated through consistent values, words, and deeds.

With critical natural resources becoming scarcer and climate change more threatening, the environmental crisis will highlight the need for all organizations to demonstrate that their operations are sustainable. Pressure will come not only from outside (societies, governments, and customers) but also from within. Showing employees that you are responding effectively to sustainability issues will be necessary to build confidence in prospects for future success. “Greenwashing” will not cut it – and in fact will damage trust.

Imperative #3: Be transparent

Importantly, employee engagement is an exchange relationship. If you want your employees to do and deliver more, it’s essential that they feel valued, believe that their extra efforts are appreciated and that, over time, there will be a balance between total rewards and contributions.

In a digital world, the four walls of an organization will have increasingly large windows. And interested eyes will be looking both in and out, which puts additional pressure on companies from an engagement and retention perspective. Social media allows your employees, especially those with highly desirable skills and experience, to promote their knowledge and accomplishments – making key talent more difficult for organizations to hide. Likewise, online resources make it easier for your employees to compare what they currently get in terms of compensation, career development opportunities, and work environment with what is on offer elsewhere.

To respond, you need to develop and reinforce strong employer brands, showcasing the unique attractions of working for your organization. You also need to recognize that rewards extend well past compensation and benefits and you should build core organizational messages around total reward offerings. In this context, line managers can effectively reward team members outside of the confines of compensation and benefits. Total rewards statements, for example, can be powerful resources for selling the rewards you offer beyond merely salary.

Imperative #4: Be flexible

Leaders are increasingly challenged with overseeing 4G workforces, with four generations of employees working side by side, each with their own needs and motivators. And, with increasing acceptance of the idea that a career should be tailored to the individual, all employees, regardless of age, are likely to value fulfillment, meaning, self-development, and recognition in their jobs

As a result, a one-size-fits-all approach to employee engagement is doomed to fail. Engagement will need to be more personal, tapping into each employee’s drivers, outlook, and expectations.

It’s important you balance traditional roles of directing and organizing team activities with more listening, coaching, mentoring, developing, and advocacy. You’ll also need to be flexible in responding to employee needs. Keeping the skill sets and expertise of Baby Boomers nearing retirement in the organization, for example, may require exploring part-time, work-from-home, or contract employment arrangements.

Finally, recognize that there are limits to the “mass customization” of engagement on the part of organizations and empower people to take responsibility for their own engagement, connecting them with the tools and resources available to help them manage their work experiences, development and careers in a personal, positive way.

Don’t Be Caught Out

To motivate and retain employees, you need to rethink your engagement strategies — because a changing world is changing the game. As part of our research looking at how the external environment is transforming engagement, we conducted a survey of 300 leaders responsible for employee engagement in Fortune 500 and FTSE 250 companies:

  • Over 80% agreed that their company needs to find new ways to engage its workforce in light of the changing environment
  • Yet just one-third feel their organizations are adapting to the megatrends
  • And only a quarter have personally started to drive change

You can avoid being caught out by:

  • Considering which megatrends will have the biggest impact on your organization and workforce
  • Identifying the changes needed in your approach to employee engagement
  • Building networks or taskforces that involve the right people and functions to make change happen
  • Regularly talking to your people across the employee lifecycle to understand how their motivators and behaviors are changing in light of the megatrends

How are you responding to the megatrends? Which do you think will have greatest impact on engagement in your organization? Tweet me your thoughts at @markroyalHG or connect with me via LinkedIn.

* * * * *

For more information on how the megatrends are transforming businesses and engagement and to find out what you can do today to respond, download our new rules of engagement report or view further materials here.

photo credit: SayLuiiiis via photopin cc

Tech Recruiting: Skilling Up to Fill the Middle #TChat Recap

(Editor’s Note: Looking for details of this week’s #TChat Events? See the Storify slideshow and resource links at the end of this post. And to learn how you can win this week’s Pebble Smartwatch giveaway, visit Dice.)

I remember when I was choosing the cover art for my book, Tech Job Hunt Handbook. I couldn’t help thinking, “How am I going to fill-in the middle?”

That’s the toughest part. Filling the middle. Developing coherent career guidance for technical professionals – from the job search, to the interview, to the hire.

But I did it. And in the process, I learned so much about how technology touches every facet of our lives, how rapidly the world of work is changing, and how important it is to stay relevant while competing for specialized jobs in areas like cloud computing, big data and mobile application development.

Retooling your skills and re-branding yourself is essential, whether you’re trying to be more effective in your current tech job — or seeking a new professional challenge — or recruiting to fill those specialized technical roles. And of course, retooling can’t be a one-shot deal. It has to be an ongoing process.

Continuous Commitment Counts

As the economy inches back, millions of people are quitting their jobs, confident they can find an attractive career next-step. These professionals are open to competent help. But even with today’s fluid, open-for-business talent pool, “filling the middle” is no easy task.

In a recent hiring survey of recruiters and hiring managers, Dice found that 5 of the 12 most challenging cities for tech recruiting are in the Midwest. Why? They’re “tough recruiting locations based on a combination of supply and demand issues.”

Frontline recruiting reports like that are a call-to-action for anyone located in “the middle,” as well as those on both coasts. Whatever your location, a winning hiring strategy takes marketing savvy, selling skills and “in the know” awareness of the technical positions you’re trying to close.

This week’s #TChat Events with Shravan Goli, President of Dice, and Sara Fleischman, Senior Technical Recruiter at Concur reinforced my conviction that “filling the middle” requires ongoing commitment, at two levels:

1) Keep Skilling Up. In today’s workplace, tech industry recruiters may feel more secure than others. But the pace of innovation is relentless — it challenging us all to stay ahead of the curve. It’s not just about matching job candidates step-for-step. It’s about proving your strength in your  role, and out-pacing other recruiters who are determined to stay “in the know.”

2) Keep Filling Up. As a tech-savvy recruiter, you may have an edge. But tech lingo isn’t the whole package. You add value by staying aware of salary trends and specifics about how your company, city and regional amenities compare. You’ll also build stronger relationships if you’re always up-to-date with practical guidance, tools and recommendations that help candidates assess new opportunities, get noticed by the right people, ace interviews and negotiate successfully.

Over time, recruiters with that kind of commitment build a reputation as resourceful “go to” career advisors. A talent pipeline eventually follows. And that’s what I call filling the middle with the right stuff.

Dice smartwatch giveaway for #TChat participantsShare Your Ideas — Win a Smartwatch!

Thanks to everyone who joined this week’s #TChat Events. We value your ideas. In fact, Dice is so interested in your input that they’re giving away a cool Pebble Smartwatch to a lucky participant!

Entering is easy. Just share your tech recruiting ideas or questions with Dice by Friday, February 7th. Then find out who wins at #TChat on Wednesday February 12th! (See details and enter now.)

#TChat Week-In-Review: How to Find Top Tech Talent

Shravan Goli Sara Fleischman (2)

See the Preview Post now

SAT 1/25:
#TChat Preview:
TalentCulture Community Manager, Tim McDonald, framed the week’s topic in a post featuring two “sneak peek” hangouts with guests, Shravan Goli and Sara Fleischman. See the #TChat Preview now: “Finding Tech Talent to Fuel the Future

SUN 1/26:
Forbes.com Post:
In her weekly Forbes column, TalentCulture CEO, Meghan M. Biro, offered guidance based on her personal experience as a tech industry talent strategist. Read “How Leaders Hire Top Tech Talent.

RELATED POSTS:

What Makes Tech Talent Tick?” — by Dr. Nancy Rubin
Tech Pros’ Salaries, Confidence Rise” — January Trend Report by Dice

TChatRadio_logo_020813

Listen to the #TChat Radio replay

WED 1/29:
#TChat Radio: Host Meghan M. Biro talked with Shravan Goli, and Sara Fleischman about what it takes to recruit tech talent in today’s competitive environment. Listen to the #TChat Radio replay now

#TChat Twitter: Immediately following the radio show, Meghan, Shravan, and Sara joined the TalentCulture community on the #TChat Twitter stream for a dynamic open conversation, centered on 5 related questions.

See highlights in the Storify slideshow below:

#TChat Insights: Finding Tech Talent to Fuel the Future

[javascript src=”//storify.com/TalentCulture/finding-tech-talent-to-fuel-the-future.js?template=slideshow”]

Closing Notes & What’s Ahead

GRATITUDE: Thanks again to Shravan Goli, and Sara Fleischman for sharing your perspectives on tech recruiting tools, techniques and trends. We value your time and your expertise!

NOTE TO BLOGGERS: Did this week’s events prompt you to write about tech recruiting issues? We welcome your thoughts. Post a link on Twitter (include #TChat or @TalentCulture), or insert a comment below, and we’ll pass it along.

WHAT’S AHEAD: Next week at #TChat Events, we’ll look at how each of us can be more effective at managing our careers, with one of the nation’s best known career coaches, Maggie Mistal, and one of her clients, Laura Rolands. So save the date, Wednesday, February 5, and prepare to raise your professional game!

Meanwhile, the TalentCulture conversation continues daily on the #TChat Twitter stream, our NEW Google+ community, and elsewhere on social media.

We’ll see you on the stream!

Image Credit: Top Student Challenges

Gender Pay Gap: The Numbers Still Don't Add Up

The world of work has become fairly sophisticated, with laws and business norms that support equitable career opportunities for all. However, there’s still plenty of room for progress — especially in terms of pay.

Studies show that compensation for women still lags behind men in the same role. Furthermore, men still outnumber women in professions that are typically lucrative, such as science, technology, engineering, and math (STEM).

The infographic below, compiled by MedReps.com (an online resource for desirable medical and pharmaceutical sales jobs), reveals various aspects of the gender pay gap — with a selection of insights by location, industry, occupation and title. Here are several noteworthy takeaways:

•  The United States ranks 22nd in the world, overall, in gender pay disparity;
•  On average, female doctors earn $56,000 a year less than males;
•  The female-to-male earnings ratio in the construction industry is 92%, while in the financial industry lags behind at only 72%.

Check out the full infographic below and share your thoughts with us in the comments area.

What do you think? What are some reasons why there’s still a gender pay gap? And what can we do to improve these statistics?

(Image Credit: Ken Teegardin at Flickr.com)

Gender Pay Gap: The Numbers Still Don’t Add Up

The world of work has become fairly sophisticated, with laws and business norms that support equitable career opportunities for all. However, there’s still plenty of room for progress — especially in terms of pay.

Studies show that compensation for women still lags behind men in the same role. Furthermore, men still outnumber women in professions that are typically lucrative, such as science, technology, engineering, and math (STEM).

The infographic below, compiled by MedReps.com (an online resource for desirable medical and pharmaceutical sales jobs), reveals various aspects of the gender pay gap — with a selection of insights by location, industry, occupation and title. Here are several noteworthy takeaways:

•  The United States ranks 22nd in the world, overall, in gender pay disparity;
•  On average, female doctors earn $56,000 a year less than males;
•  The female-to-male earnings ratio in the construction industry is 92%, while in the financial industry lags behind at only 72%.

Check out the full infographic below and share your thoughts with us in the comments area.

What do you think? What are some reasons why there’s still a gender pay gap? And what can we do to improve these statistics?

(Image Credit: Ken Teegardin at Flickr.com)

Internship Compensation: Does It Pay?

In light of the recent slew of compensation-based class action lawsuits, unpaid internships are a hot topic. And with only 36.9% of companies still offering interns less that minimum wage or no compensation at all, it’s clear that relying upon unpaid interns is more damaging than many employers assume.

How might that “free” extra set of hands leave you paying a price? Take a look at the following infographic, compiled by InternMatch, an online platform connecting the best intern candidates and employers. It showcases several key intern compensation facts, as well as implications for employers. For example:

• 48% of internships accepted by the Class of 2013 were unpaid
• 41% of paid interns weren’t paid enough to cover basic daily expenses
• 65% of students relied on financial assistance from parents during their internships
• 63% of paid interns subsequently received at least one job offer

Whether you’re an intern or an employer, there’s a message here for you. Check out the full infographic, and share your thoughts in the comments area below!

What do you think? Should unpaid interns fight back against employers to recover unpaid wages and overtime?

Image Credit: Stock.xchng