Sessions
Concurrent Session
Just Say No to "Merit" Increases (and Manage Salaries Instead)
Oak
SHRM PDCs
| Competencies: Consultation, HR Expertise
“Merit” increases, as commonly determined, can result in some very risky situations for employers of all types. These may include:
- Serious internal pay inequities, leading to both (a) noncompliance with pay equity legislation and (b) negative employee engagement due to perceived unfairness
- Lack of market competitiveness, often leading to high undesirable turnover and an inability to hire the best candidates
- Excessive payroll costs, especially when resulting in overpaying and/or underpaying employees, as both consequences are costly
- Obliteration of real linkage of pay to performance, as “merit” typically doesn’t mean true merit at all
Learn how to make base pay adjustments in a way that results in equitable, cost-effective, competitive, legally compliant, and motivational wages and salaries.
In this session, you will learn how to:
- Establish internally consistent and market-competitive job values
- Administer base pay adjustments within a job value framework
- Make pay for performance actually work