There are two components that employers decide: 

1 – What percentile of the external market do you want to target?  

Example: “We target our total compensation opportunity at the 50th percentile.” This means that the employer is ensuring that their pay ranges are aligned to what their competition for talent is paying at the middle of the market.

I’ve been thinking a lot recently about whether employees are receiving a living wage these days.

AND from an employer’s perspective, can you provide a living wage to all your employees and make a reasonable profit?

A living wage is enough to provide for all an employee’s basic needs, and some discretionary income for emergencies.  A living wage is often higher than the minimum wage that a government mandates.

I reviewed HR.com's State of Pay Equity Report today and found the findings interesting.  For instance, what factors are considered for pay decisions when making hiring offers?

1 – the compensation of others holding the same job in the organization

2 – years of relevant experience

Did you read the Fortune article published on August 29th with the title of “Employers have had enough and are starting to cut salary offers by as much as 47%, according to analysis of 20,000 job postings?” 

I read it. I don’t like articles like this, because it creates the perception that wages are decreasing across all industries, locations, and employers.

Are they really?

Currently, about 1 in 4 workers is covered by some form of U.S. pay transparency legislation. At least 15 states are considering pay transparency laws in 2023.

The number of U.S. job postings that include salary information more than doubled between February 2020 and February 2023, from 18% to 44%. (Source: Indeed)

I was working with a C-suite decision maker last week on a new hire job offer for VP level job.  The candidate, Sara (not her real name), should be paid at the top of the base salary range given her years of relevant work experience, education, track record of strong performance, and work location. 

The C-suite leader – I’ll call him Bob - was struggling with paying her at the high end of the range because of how that compares to the pay of other VPs. These other VPs were paid below the base salary range midpoint. In other words, they weren’t being paid a competitive salary. (Yes, midpoint was anchored to median of the market.)

If you want to earn more, then focus on improving your emotional intelligence.

Emotional intelligence or EQ is the ability to be aware of our own emotions and those of others, in the moment, and to use that information to manage ourselves and manage our relationships.

While IQ remains pretty much fixed from birth, the good news is that emotional intelligence can be learned and improved.

Cost of Living and Cost of Labor mean different things and can often cause confusion when referencing compensation and total rewards.

Cost of Living represents the costs a consumer has in a specific geographic location for food, shelter, transportation, energy, clothing, education, healthcare, childcare, taxes, entertainment, etc. It is the cost consumers incur to maintain a certain standard of living. The Cost of Living is often tied to the Consumer Price Index or CPI, which reflects inflation.

If you want to be a great leader, listen more than you talk.

Discover the potential in your team members and help them achieve it.

Keep your people safe. Always.

Ask questions. Teach your employees how to ask great questions.

I am creating a presentation today for a speaking event next month and have been researching the average human attention span.

1.      The average human attention span is 8.25 seconds. That is 4.25 seconds less than in 2000. That is less than goldfish at 9 seconds.

2.      Attention spans can range from 2 seconds to more than 20 minutes.

I was helping a nonprofit employer client earlier today by developing a presentation that tells the story about what has changed over the last few years.

We want to adjust their approach to compensation but not disregard what they have used in the past or say that it is “wrong.” 

The bullets below are U.S. focused and data source is the Bureau of Labor Statistics (BLS).

I like having goals. And every so often I check in with myself to reflect on how I am spending my time and energy in relation to my goals.

The chasing of the goal or the journey that requires focusing on one step at a time, THAT is where I like to dwell.

The outcome of work effort is just a tiny aspect of the total experience.

Yes, it happens. And employers who do this are not doing themselves any favors.

I worked for a company many years ago who had a “rule.” If the employee’s base salary was already within the base salary range assigned to the new job they were promoted to, they didn’t get a pay increase. BUT the HR or Compensation employees who support the division the employee worked in could ask for an exception based on strong business rationale.

Guess what - I asked for an exception every single time.

A senior HR leader I work with shared that he had an employee bring in a job posting recently for a job they viewed as like the one they were performing. The employee asked for a pay increase because the base salary range on the job posting was higher than what they were earning.

He asked how I would respond to the employee.  I said, “One data point isn’t the market.”

I went to the Barbie movie recently with my 19-year-old daughter. It was also the last evening we spent together before I left her in the city where she goes to college.

One of the quotes from the movie that I keep reflecting on is:

“We mothers stand still so our daughters can look back to see how far they have come.” –Ruth Handler (The character is played by the actress Rhea Perlman.)

I love having kickoff calls with employers where we discuss the project and deliverables. I have two of these calls this week. 

It is inspiring to focus on improving their compensation programs to ensure they are meeting the needs of the business.

Everyone is enthusiastic about how they will contribute and looks forward to making a difference.

More and more employers are focusing on pay equity and transparency. But the end goal isn’t just to have this occur in relation to pay. 

The ultimate goal is to impact workplace equity positively and to have more transparency in the workplace. 

When I partner with an employer, I look for ways to improve their performance using compensation programs and communications.

That means that there are problems to solve. 

And sometimes the most difficult step in the process is determining what to solve first.

I use a business case framework focused on the following:

The founder of The Pledgettes (thepledgettes dot com), Jenn Uhen, asked me to provide money advice I would give to my younger self so she could share that with her members.

The Pledgettes is a financial community of incredible women who are pledging to take an active role in their financial journey. Because every individual money move you make has a ripple effect on a more equitable future.

Here is my advice:

I remember the first time I communicated a promotion to one of my team members. I was delighted to give them the good news and they were excited as well. 

Behind the scenes I had worked for more than six weeks to get the promotion approved and the pay increase that went with it.

Who had to approve and/or review my request to promote someone on my team?