Equity Compensation is Worthless

Compensation Cafe

For more than three decades equity compensation has been considered a necessary and ubiquitous element of pay at start-ups and high-growth publicly traded companies. Large studies have shown again and again that most (85%) equity compensation recipients do not understand their awards.

HR Competencies for 2025 – A Future Standard

Digital HR Tech

Not only will their existing skills become obsolete, but they will also need to develop new HR competencies to perform well. This is best illustrated when we look at the role of technology. This calls for a revision of the old HR competency models that organizations are using.


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Compensation Managers Need to Manage

Compensation Cafe

I once supervised a strong performing technical compensation analyst who was eager to work his way into a management role. This fellow was a whiz at spreadsheets, data analysis, and survey modeling. Compensation Philosophy Competencies Performance Management

Resilience Rises: 4 Top Competencies of HR Professionals


Now, employee wellbeing and resilience competencies of HR professionals are rising to the top of the priority list for employers. Here is a closer look at four top executive HR competencies and skills you’ll need to lead your resilient HR movement. “Resilience rises.”

Applied AI in Talent

AI is both disrupting and transforming everything about workforce management. For HR leaders, that means changing the types of skills and competencies companies need, changing the way existing employees do their jobs, and altering the recruiting landscape. This handbook looks at how AI is shaping the way we think about workforce planning and development at the highest levels.

Winning the Compensation Triathlon

Compensation Cafe

Being locked up at home for the past nine months has given me the time to watch some videos that wouldn’t have made the list in a normal year. Watching a few of these events (appropriately sped up) reminded me of the power of a compensation philosophy.

Compensation Intersects with Management Recruiting

Compensation Cafe

One of the multiple hats I wear as a Compensation Consultant is working with executives in transition, helping prepare them for the employment offer so eagerly sought. Compensation : Thumbs up or thumbs down? At the upper level there are more moving parts within an employment offer.

What Is A Non-compete


If you’re reading up about hiring employees for your business, you’ve probably come across the term, non-compete. What is a non-compete, and when should or shouldn’t you sign it? What is a non-compete? First things first – what is a non-compete?

An Employers Guide to Agile Compensation Strategies

Get Hppy

At the same time, the composition of the workforce is changing. Is your compensation plan like an ocean liner or speedboat? In addition, pay grades can be a helpful framework for streamlining compensation if market data is not found to price jobs.

Cafe Classic: Compensation in Context

Compensation Cafe

It’s the same at work. I always thought there was a strong connection between compensation and organizational design. I couldn’t “do” compensation unless I had organization charts. I’m going to tell a story that I hope will make you see a parallel to compensation. .

The Time is Now. Compensation Pros Must Rise to the Challenge.

Compensation Cafe

For at least a few decades, this has been the way of things in the world of compensation. Now is just such a time for compensation professionals. The current crisis has exposed the dusty corners of compensation practices. Take a good hard look at your pay programs. (Go

Compensation Package: A Guide For HR

Digital HR Tech

Offering an appealing and generous compensation package is an important part of your employee value proposition. To stand out from other organizations, what should your compensation package include and how do you go about assembling one? Contents What is a compensation package?

What Is a Deferred Compensation Plan?


What Is a Deferred Compensation Plan? Deferred compensation is the process of reserving a portion of an employee’s compensation to be distributed at a later date. These deferred compensation payments are usually in pension plans, retirement plans, or stock options.

Compensation Packages That Drive Executive Performance

Professional Alternatives

It’s possible to inspire your executives to deliver excellent results, by ensuring that their compensation packages are properly aligned with the company’s strategy. Tips for Designing Compensation Packages.

Compensation Management in the Banking Sector


Compensation management in the banking sector is no different. Compensation managers for the banking sector must balance the needs of shareholders, investors, and customers when creating compensation plans. . What Is Banking Compensation Management? .

2021 Compensation Budgeting Forecast Part 2: Incentives, Bonuses, and Variable Compensation

Astron Solutions

2021 has been a year of uncertainty, especially in terms of compensation increase budgeting. As a result, organizations around the country are reexamining their variable compensation strategies and the impact on employee engagement & recognition.

Compensation Communications: Should I Say How I Feel?

Compensation Cafe

Many of our colleagues would say that compensation has nothing to do with feelings. On the other hand, feelings have a lot to do with compensation COMMUNICATIONS. Addressing feelings through compensation communications is tricky business. Let's look at an example.

Cafe Classic: How to Keep Competencies from Expiring

Compensation Cafe

Many of our organizations use competencies to signal how work should be approached and to assess how well we are doing our jobs. Are your competencies up to the task. The competencies you use for employee development or assessment need updating in 2015.

Compensation Wormhole

Compensation Cafe

Let’s look at it from the perspective of an employee who is doing a good, but not outstanding job. Nearly all of us can do a better job at talking to people and learning what they value. Even the most impressive vision provided by a stranger can have a tough time competing with the future vision already communicated by a friend. No one wants to reprogram their GPS or learn a new place to get great tacos at lunch. Or, follow him on Twitter at @Performensation.

Considering Competency Pay

New to HR

This all relates to competency. Competency to the business world is what discipline is to the academic world. Because of this, the idea of paying more for competencies in a company is lacking yet it is a popular idea, but how can such a thing even be implemented? Instead of developing a strategy that charts a competency''s training and subsequent advancement through the company followed by adding pay, start with their pay scale.

7 Recruiting Competencies to Guide the 21st Century Recruiter


Great not just good recruiters require a different set of skills, abilities, and competencies altogether to engage, qualify and recruit talent to our organization(s). I’ve been exploring the different competencies needed to be successful at the different human resource roles: 1) recruiter, 2) leader, and 3) HR practitioner. I wrote about trends in a similar manner at the beginning of 2016. What is a Competency? Their compensation split is much different.

Sales Compensation Strategy 101

HR Daily Advisor

Setting the compensation strategy for the entire organization is no small task, especially when certain groups may warrant their own separate compensation strategy, as they have differing goals and objectives. Salespeople frequently have compensation plans that reflect the fact that their actions are closely tied to achieving these specific revenue and profit objectives. Sales compensation strategy 101. Who are you competing with for sales talent?

Tips for Developing a Powerful Compensation Philosophy


A compensation philosophy aims to ensure pay is market-competitive and aligned to the business strategy. To support these two factors, there are six components, or goals, of compensation philosophy: Attract top talent from the market. Compensation Philosophy Examples.

Could a Non-Compete Hurt Your Business?


In a previous blog posting , we profiled a study which found that non-compete agreements may actually decrease motivation and performance. At face value, the non-compete seems like a slam-dunk. Court Costs: As we mentioned earlier in this post, non-competes are a legal landmine!

Compensation In The Real World

Compensation Cafe

I once supervised a Compensation Analyst who had spent much time attending professional seminars and workshops. One result of that education was that when faced with a challenge at work she would repeat her class experience by saying, “the greatest minds in Compensation say that. “. Yes, it is very important to understand the technical foundations of Compensation methodology and practice. Why doesn’t Compensation theory match with workplace reality?

The Pros and Cons of Six Different Competency Models


Can’t decide which competency model to use? When it comes to a competency model and deciding how to incorporate competencies into your employee performance management process, you will need to consider how these competencies will be defined , assessed, and rated. According to Training Industry , a competency model is a framework for defining the skill and knowledge requirements of a job. Reduces reliance on experts’ assumptions about actual competence.

What Keeps Human Resources Professionals Awake At Night?


What one aspect of your HR role has kept you up at night in the last week? ??After What really keeps Human Resources professionals up at night? Perhaps the next time someone asks you what is keeping you up at night, you can respond with,”nothing at all”.

Top Investments in Compensation Communication

Compensation Cafe

There may be more worthwhile goals for a compensation department to have than pay transparency , though the national media wouldn't have you believe it. At Compensation Cafe we encourage our readers to improve CLARITY rather than enforce pay transparency before you're ready.

Are Competencies Cursed by the Gods?

Compensation Cafe

There's a world of difference between "competence" and "competencies" but we often confuse the two. I'm specifying business here, because education uses competencies in many practical ways and they don't seem to experience the same level of mayhem.). Because so many of us continue to use competencies in our performance management and career development efforts. So here goes -- one tiny mortal's attempt at some clarity. Competence" and "competencies".

Navigating Clawback Provisions in Compensation Plans


This provision became a tool for controlling employee compensation and preventing fraud in executive officers after 2008. . In the meantime, most organizations’ compensation committees and sound corporate planning strategies have put in place policies to prevent this.

Healthcare Hiring in the Depths of Covid-19: Competing for Candidates

Sterling Check

for registered nurses at the beginning of 2020. ” Hospitals are relying on Staffing firms to supplement their own staff— registered nurse travel demand increased 44% in November alone, and continues to rise—and this means hospitals are often competing with Staffing firms for talent.

Equity Compensation is Like The Iditarod

Compensation Cafe

Speaking of frozen things, let’s talk about equity compensation and The Iditarod Trail Sled Dog Race. Like a well-designed equity compensation plan, The Iditarod is long and not for the faint of heart. All of these things can also be said of a successful equity compensation program.

Considering Competency Pay

New to HR

This all relates to competency. Competency to the business world is what discipline is to the academic world. Because of this, the idea of paying more for competencies in a company is lacking yet it is a popular idea, but how can such a thing even be implemented? Instead of developing a strategy that charts a competency’s training and subsequent advancement through the company followed by adding pay, start with their pay scale.

Looking to the Future: 2021 Compensation Budgeting Forecast Part 1: Base Pay Adjustments

Astron Solutions

When it comes to forecasting compensation trends for 2020 and 2021, there have been challenges. In this Astronology®, part one of a three-part review of 2021 compensation planning projections, we will share what we have learned to date.

Employee Compensation: Everything you Need to Know

Astron Solutions

As an HR leader for your organization, you know that employee compensation is not just something you determine when you hire a new team member and then forget about. After all, without fair and enticing compensation, people may start to leave. What is Employee Compensation?