2016 Resolution #8 – Ensure Base Pay is Predictable

It’s never too late for a resolution!

The Compensation Times

Resolution #8 – Examine your base pay program from the perspective of employees, and ask yourself whether they can “predict” changes to their pay.

For the vast majority of jobs, hourly wages or annual salaries make up most of total cash compensation.  While incentive compensation may be a motivator for some, base pay pays the bills – and it’s what lenders rely on when employees need a mortgage or new car loan.  Employees deserve stability and predictability – they should know:

  • How their wages or salaries are set;
  • What they can do to increase their income; and
  • Whether their pay is fair and equitable.

Prior to communicating information about your pay program (that’s resolution #10), carefully examine the program from the employee’s point of view.  Ask yourself what employees know about the program, and how you would expect they would respond to it.

Straight-forward pay programs are predictable – not…

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About Edmund B. Ura

Edmund B. Ura, MAIR, JD, works with governing boards, executives and human resources staff to develop methodologies for ensuring fair and equitable compensation programs that support achievement of organizations' missions. Contact Ed at ebura@mercesconsulting.com.
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