Note: This is the second in a 4-part series on compensation practices for small companies. In this series Margaret O’Hanlon shows how a small company typically deals with compensation, discussing each of a few key practices and what problems these may create as the company grows. She offers her insights on how to improve these practices to avoid difficulties as the company expands from under 100 employees to 1,000. Each installment of the series will be published on successive Tuesdays.
Note: Today begins a 4-part series on compensation practices for small companies. Over the next four weeks, Margaret O’Hanlon will show how a small company typically deals with compensation, discussing each of a few key practices and what problems these may create as the company grows. Each week she’ll offer her insights on how to improve these practices to avoid difficulties as the company expands from under 100 employees to 1,000. Each installment of the series will be published on successive Tuesdays.
Imagine a male colleague of yours tells you his wife said she’s unhappy with their marriage. Last night she told him she doesn’t feel close to him; she doesn’t feel like they have an emotional connection.
In an evolving labor market where employees are expecting (and receiving) higher pay and better perks, employers often compete in the race for top talent by offering better and bolder benefits packages. And with the unemployment rate as low as 4% as of this June, that race is clearly heating up.
As employers try to figure out what employees want most, there can be a tendency to rely on gender and generational stereotypes that often don’t meet the individual needs of employees. Our recent survey of 2,200 employees shows what a mistake that is. We found little consensus on life goals within age groups. In addition, there aren’t the great disparities you may expect to see between genders when it comes to life goals. Goals which may seem to fit a stereotype for the 26 to 35 age group, such as buying a house, starting a family, socializing, getting married, etc., are not important for everyone in that age group.
The Great Recession of 2008 was the single biggest financial catastrophe to hit the U.S. in the Post World-War II era. Though this may seem like old news, and the country may seem well on its way to recovery, millions of Americans (and many of your employees) are still reeling.
Communicating employee benefits is a year-round job –– making sure employees remember key dates, know how to make changes when they have a life event such as getting married, submit claims on time and so much more. But open enrollment is when you hit your biggest communication challenges –– because there’s so much to communicate in so little time.
Human resources, at its core, exists to support the organization as a whole by helping employees perform at their highest level. This support is provided through a wide range of activities: recruiting talent, helping employees make the right benefits decisions, providing professional and educational support, keeping employees engaged within the organization, providing performance guidance and feedback, creating and encouraging wellness initiatives – the list goes on and on.
We’re only nearing the halfway mark, but 2018 has already been a big year for employee benefits. Whether part of a strategic plan, byproduct of corporate tax breaks or a little bit of both, we have seen a number of exciting examples of companies getting serious about supporting working parents.
In the aftermath of the financial crisis in 2010 Congress enacted a law requiring public companies to identify the compensation of their median-paid employee, compare that to the CEO as a ratio, and disclose it each year. As noted by the SEC in enacting rules to implement the legislation, Congress provided no rationale for the rule, although presumably it was intended to highlight perceived inequities between executive and average worker pay. Even more importantly, it required companies to disclose for the first time, not what executives were making, but what the median worker was paid.