Imagine reviewing a spreadsheet of bonus and sales commission calculations.
You see different bonus targets for employees with the same job title. And you are assuming that is because the employer had different pay offerings based on the funding stage they were in.
You see in the sales commission tab of the spreadsheet that the targets vary by employee and there is no consistency. You’ve looked at the data by job title, work location, hire date, and supervisor. Then you start looking at it by race and gender.
You see trends that aren’t aligned to the employer’s stated pay equity commitment.
Then you look at long-term incentives and see that early-stage employees have more stock than their later stage colleagues.
And then you go to the overtime earned spreadsheet and see there is a lot of overtime earned by some employees and very little by others. And there is a difference by gender and work location. You also see a difference based on who the employees report to.
Next you look at who has been promoted in the last two years and what are the factors that led to the promotion.
Then you look at the employees that were reviewed during succession planning sessions. Who is labeled as Ready Now, Critical Role, Ready in 1 – 2 years, or Ready in 3 – 5 years? Who wasn’t reviewed and why?
Who received a high potential stock grant in the last year? Who did not?
Who has been given a retention award?
What about your spot award program? Who is getting payments regularly and who isn’t?
If performance ratings were used in some of the pay/stock related decisions, do you trust that the performance ratings were objective and consistently assigned across all your employees?
Most employers are NOT digging deep enough into all their base pay and incentive-based programs to understand if they have pay inequities that need to be cleaned up.
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