« Equity Compensation Probably Doesn’t Save You Much | Main | Cafe Classic: What Do CEOs Really Want from Compensation Professionals? »

11/09/2018

Comments

Feed You can follow this conversation by subscribing to the comment feed for this post.

Love this! I’ve been fascinated with this topic and I appreciate your perspective!

Thanks Joe - great to hear from you!

I believe some salary compression is warranted. I've never understood why we base all compensation on percentages. . . this leads to the opposite of compression and happens in periods of diminished labor demands. The compression is a correction. Additionally, many college grad hires have skills needed for technology advancement in many industries, skills the experienced hire may or may not have. This warrants the premium salaries being paid to graduates, but does not warrant adjustments to all.

Thanks for the great comments and observations, Deb. Agree that sometimes the salary squeeze between new hires and tenured employees that raises the compression alert can be entirely appropriate - especially in situations where the premium salaries reflect new skills and tech acumen which the company now needs and experienced employees may not have. HR and compensation pros need to ensure they understand the circumstances around compression "issues" before suggesting/approving pay adjustments - as the differentials may indeed be entirely appropriate. And then, there is the thoughtful and honest communication to those involved/impacted which must happen.

Appreciate your reading and commenting!

Verify your Comment

Previewing your Comment

This is only a preview. Your comment has not yet been posted.

Working...
Your comment could not be posted. Error type:
Your comment has been posted. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.

Working...

Post a comment

Your Information

(Name and email address are required. Email address will not be displayed with the comment.)