Wealth can provide freedom in the form of choices and opportunities.

It allows for the pursuit of passions and interests and can give individuals the means to make a positive impact on the world.

Pausing and being intentional can change the way you communicate. Before you speak ask yourself if what you are going to say is…

T - True
H - Helpful

Today I am focusing on eliminating things.

Paper
Email subscriptions
Clothes not worn
Empty boxes
Business expenses that no longer make sense

I ask this question when I talk to employers about their compensation projects. I also ask this when I start working with a coaching client.

Sometimes the answer is a long pause, because they have to think about what the success metrics are. At other times it is an immediate list of ALL the things the compensation project or pay negotiation coaching is ideally going to deliver.

HR and Business Leaders:

• Your compensation philosophy will be published.

• You will invest in a job architecture project if you haven’t already.

• You will be talking about publishing your grades and pay ranges for all employees to see. And you will recognize the need to development training and resources to ensure that employees and their managers know how to talk about this information in a positive proactive way.

Grades will continue to be used and the pay ranges associated with these grades will become broader than normal by about 10% - 15% in the short-term.

Increasing the Range Spread will allow employers to hide that they are underpaying some employees who are long tenured in comparison to new hires. (Yikes, pay compression!)

Younger employees will continue to share their lives on social media. That will include how much they are paid.

You can find creators on TikTok asking people what they do for a living. They follow that question up with, “How much to you make?” And people are sharing the details. “I’m a Marketing Manager and I make $115,000.”

New hire pay offers will be competitive and more internally equitable going forward. They have to be, or candidates will decline the offer and move on quickly.

Smart employers will streamline their hiring process and decrease the Time to Hire or TTH.

Employers will prioritize doing pay compression analysis at least once a year. There will be two areas of focus.

(1) The pay differential between the highest paid direct report and their manager will be 10% - 15% for most scenarios. And employers will establish starting pay rates that are higher than the minimum of the range for some manager jobs.

There will be an increased need for experienced HR and Compensation professionals who can do the necessary total compensation analysis in Excel and use other tools (think salary survey databases, market pricing decision tools, and pay equity audit software).

Employees will ask more questions about their pay and will ask for increases if they feel they are underpaid. With more employers publishing their salary ranges on job postings, employees will have more information on what competitive pay rates are.

Human resources professionals and business leaders will spend more time managing the cost of labor.

Labor costs can account for as much as 70% of total business expenses depending on the industry. This includes employee wages, benefits, payroll, and other related taxes. Yet, HR professionals only spend 15% of their time managing the cost of labor. (Source: Paycor survey)

Wages in the U.S. rose by 5.4% in 2021. The annual rate of wage growth over the last three months was 5.1%. This increase in wages trend will continue in 2023, but it will soften.

While layoffs in the tech industry are getting a lot of attention right now, the labor market is still tight, and employers will continue to feel pressure to increase wages to attract the right talent. They will balance that with the uncertainty related to a potential recession, the war in Ukraine, and the Federal Reserve’s interest rate hikes to impact inflation.

Pay equity and transparency related legislation will continue to be passed that requires employers to share the “salary or hourly wage range that the employer reasonably expects to pay for the position.” (Source: quoted language from California’s broad pay transparency law)

This will be a continued emphasis in the U.S. and globally to reduce and eventually eliminate pay discrimination.

Think of how a capital “T” looks. The line at the top is horizontal and it represents the breadth of your skills. The vertical line going down represents the depth of your skills.

The breadth and depth of the career you develop matters. A lot.

When I was a kid, sitting and doing nothing was considered lazy. I grew up on a farm and there were always weeds to pull in the garden, an animal that needed to be fed, or equipment that needed to be fixed. Shit needed to be shoveled. (Seriously, the amount of shit I have shoveled…) And, of course, in the house there was a floor to clean, a load of laundry to do, and dishes to wash.

That focus on being productive has been my default for so long.

When you receive a job offer, do you automatically think about how you will negotiate?

I just talked to a potential client, and she is going to be negotiating three internal job offers from her current employer.

As an employer, if you pay too much to your employees or contractors you are negatively impacting the financial health of your company.

You’re spending more on talent than necessary to get the work done. And you are limiting your ability to add to your team.

Imagine always knowing what the job pays because every employer posts the base pay range on their job openings.

Imagine being a candidate and never having to answer the question, “What are your salary expectations?”

I like taking notes with a pen on paper. It’s old fashioned but I tend to remember what the conversation was about better if I handwrite and doodle on the page vs. typing in a Word document.