After the unprecedented economic bounce-back, 2022 finished off with rising inflation and a number of layoffs across the globe. The market seems to be on the way to leveling out, as those trends continue into 2023. Year-over-year hiring rate stalls globally and more often than not, we hear of the upcoming recession.
Welcome to the compensation review season.
Like most of us, are you staying into late night hours trying to manage the merit cycle in a timely manner with your understaffed department?
Fear not. You can eliminate quite a few common problems surprisingly easily with compensation management software.
Here is my list of the 11 most dreaded ones. The 6th one will surprise you.
Short-term incentives are the most prevalent type of compensation after salary. Their popularity stems from their versatility and short performance cycles with frequent checks and adjustments, lending STI bonus to be one of the more agile-friendly incentives.
In the past, compensation management used to be rather straightforward. HR departments found new hires quite easily, employees tended to stay at a company for a while, and an annual compensation review was enough to keep both sides satisfied. But the days of 2% raises and ad hoc compensation planning are over.
In an era where diversity, equity, and inclusion are no longer just buzzwords but business imperatives, the specter of gender pay discrimination continues to haunt Corporate America. Recent years have seen a surge in high-profile lawsuits and settlements that have not only hit companies’ bottom lines but also dealt significant blows to their reputations.
Although the Civil Rights Act and federal laws provide protections against wage discrimination based on race, color, religion, sex, or national origin, employment discrimination is still rampant in the US. As the dust settles on these legal battles, it’s clear that the true cost of pay discrimination extends far beyond the courtroom.
The executive compensation package has an undeniable impact on companies. A well-designed executive compensation plan can positively affect the achievement of the organization's strategic goals, ultimately driving the firm's success. A bad one may result in misalignment, short-sightedness, loss of talent and profits, effectively running the business to the ground.
