Category Archives: Compensation Administration

Establishing an effective compensation administration program requires job analysis, job evaluation, and job pricing. A successful program will help attract top talent, retain core employees, and encourage longevity while efficiently using financial resources. Our articles and tips on Compensation Administration will provide you with How to information on compensation challenges including software, payroll, tax, and communication.

Please Sue Me—2014 edition


"As usual, consultant Hunter Lott (hunterlott.com) drew a large crowd to his SHRM Conference and Exposition presentation, “Please Sue Me 2014.” He opened the presentation with the usual list of “Please Sue Me’s.”"

Lott showcases several “Please Sue Me” actions, and then talks about how to avoid these expensive situations.

‘Distressed Babies’ Comment Draws Apology from AOL Chief

AOL’s CEO defended a policy change (awarding 401(k) matches annually instead of monthly) that he said was needed to counterbalance healthcare expenses such as those caused by two pregnancies where “distressed” babies incurred more than $1 million each in medical expenses. An employee uproar caused him to reverse the policy.
Please sue me, says Lott.

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Soft Stuff (Like Rubber Chickens) Gets Results


"Speaking about his unique recognition programs, Yum! Brands Chairman and CEO David Novak says, “Soft stuff gets hard results.” He ought to know, as he’s in charge of recognizing 1.4 million associates in over 40,000 KFC, Pizza Hut, and Taco Bell restaurants in 125 countries."

Novak is the author of New York Times and Wall Street Journal best-selling book, TAKING PEOPLE WITH YOU: the Only Way to Make BIG Things Happen. He offered his thoughts on leadership at the SHRM Annual Conference and Exposition, held recently in Orlando.

No Recognition for 47 Years

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Failure to Pay Correctly—#6 on the List of Lawsuit Magnets


"In yesterday’s Advisor, we presented the first five of Attorney Aaron Zandy’s 10 lawsuit magnets—the most costly management mistakes. Today, the rest of the 10, including failure to pay correctly."

[Go here for failures 1 to 5.]

6. Failure to Pay Correctly

Yes, it’s the pay thing. Zandy’s danger zones are:

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The 10 Most Costly Management Mistakes—and How to Avoid Them


"Attorney Aaron Zandy, SPHR, uses essentially this opening statement at the beginning of every trial. But, he says, “sometimes it’s easier than others.” Here’s the statement:"

“It’s a case of perception vs. reality. The plaintiff perceives he (she) was disciplined, retaliated against, and harassed.  The reality is different. He (she) was terminated for a legitimate, non-discriminatory, non-retaliatory reason by a professional, well-trained manager with supportive documentation.”

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Your Manager’s Worst Sin—Envy, Greed, or Sloth?


"Yesterday’s Advisor covered the first four of the seven deadly sins of managers; today, we present Envy, Greed, and Sloth."

[Go here for sins 1 to 4 and a bonus sin]

Sin 5. Envy

Envy makes managers do things that aren’t appropriate for the company. For example:

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How Many of the 7 Deadly Sins Are Your Managers and Supervisors Committing—Right Now?


"Surely MY managers and supervisors are following our policies and your practices to the letter. Sorry, wishful thinking. Here are seven deadly sins that your managers are probably committing right now, down the hall."

Sin 1. Lust

Sexual harassment continues to be a problem in the workplace. And it’s often worse when it’s a manager and a subordinate. Perhaps the most difficult challenge in training managers and supervisors about harassment is getting across the idea that what matters is the attitude of the receiver of the harassment, not the deliverer. Managers think they can excuse their improper behavior with “I was just kidding” or “Can’t she take a joke?” but if the victim was offended, and especially if he or she asked for the behavior to stop, there’s a problem.

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‘Turmoil in East Timor’—No Longer an Excuse to Leave Socks on the Floor


"What’s the biggest change since you left the White House? Former First Lady Laura Bush says, “George can no longer use ‘There’s turmoil in East Timor’ as an excuse to leave his socks on the floor.” She was the keynote speaker at SHRM’s Annual Conference and Exposition held recently in Orlando."

The First Gentleman

To a big round of applause, in response to a question about how she figured out what the first lady should do, she said, “It won’t be long until you’re asking what the first gentleman should do.”

Clanking of the Gears

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Looking for Great Talent? Look for Potential


"The cover article in the June issue of Harvard Business Review is titled “The Big Idea: 21st-Century Talent Spotting.” Since all of us as managers are constantly on the lookout for talent, the title, of course, grabbed my attention. The author, Claudio Fernández-Aráoz, a senior adviser at a global executive firm, boldly claims that potential is “the most important predictor of success at all levels.”"

Fernández-Aráoz says that potential is the fourth era of talent spotting. Here are the previous three:

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Change Management—What Would Don Draper Do?


"SPECIAL from SHRM Annual Conference and Exposition, Orlando What can managers learn about change management from TV character Don Draper? Consultant Dr. Frank V. Nunez gleans 10 essential lessons from the Mad Men."

Who is Don Draper?

Don Draper is the Creative Director for Sterling, Cooper, Draper, Pryce on the Emmy-winning television series Mad Men. He is a confident, stylish, hard-drinking, chain-smoking 1960s advertising executive.

Nunez, owner of Nunez Leadership Consulting (changedoc10@yahoo.com), offered his Draper-based tips at the SHRM Annual Conference and Exposition held recently in Orlando.

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No More HR Terrorism


"In yesterday’s Advisor, we featured consultant Tim Sackett’s What the CEO Wishes HR Would Do. Today, HR terrorism and Sackett’s 6-step program for HR managers."

How is HR a terrorist? HR tends to use the law as a hammer, Sackett says. “No, you can’t do it; it’s against the law.” A better approach is, “Yes, you can do it, but we put ourselves at risk for an expensive and prolonged lawsuit.”  You be the CEO’s risk advisor; he or she can decide whether to accept the risk.

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