Salary Surveys - Compensation Surveys - Benefit Data

Accounts Login

Login help

HomeProducts & ServicesContact UsAbout SalarySurveyOnline Your cart is empty

News & Information

All | Email Articles | News

ArticlePublication Date
How to Age (Update) Survey DataMarch 2014
The Five Biggest Mistakes in Compensation and How to Avoid Them #1October 2011
The Five Biggest Mistakes in Compensation and How to Avoid Them #2November 2011
The Five Biggest Mistakes in Compensation and How to Avoid Them #3December 2011
The Five Biggest Mistakes in Compensation and How to Avoid Them #4January 2012
The Five Biggest Mistakes in Compensation and How to Avoid Them #5February 2012
Article: The Five Biggest Mistakes in Compensation and How to Avoid Them #2Publication: November 2011
New Page 1

This is the second in a series of five short articles addressing some of the more common compensation issues facing HR professionals today.  Not really a lot of new issues or resolutions, but maybe the timing is just right for solving one of your headaches.

The second of the Five Biggest Mistakes is Wage Compression - the beast within.

Wage compression usually occurs when an organization brings in a new hire at a rate higher than one or more current employees in that job.  This action has the potential to create mistrust, poor morale, turnover, and litigation

How to Avoid It

Here's a simple way to avoid this type of wage compression.  When a vacancy occurs, establish a hiring range:  not less than the minimum of the range and not more than the lowest paid competent performer in that job. If you cannot fill the job without going outside the range, make plans to increase the pay of the current employee(s) in the job.

How to Fix It

There is only one way to fix current compression issues:  put money on the table.  No amount of explanation, policies, or meetings will fix it. Depending on the amount of money required, you may have to fix the issues over a period of time - just don't take too long.

Remember...

There are no secrets in compensation!  Fix the problem and avoid repeats in the future.

Next month, we'll focus on mistake #3 - merit budgeting

About SalarySurveyOnline.com

Starting in 1992, Effective Resources, Inc. has been providing salary, wage, and benefit data for the Tampa Bay Area.  Expanding on that success, the survey has been covering the entire State of Florida and the State of Tennessee via their survey website at SalarySurveyOnline.com.  This survey is developed by professionals for professionals. The survey is an invaluable source of information for Florida employers of all locations and sizes, business owners, Human Resource professionals, and educational institutions with graduating seniors.

SalarySurveyOnline.com Home | FAQ | Privacy Policy | Other Policies & Information | About Security at SalarySurveyOnline