Change in Plans…

A change in plans isn’t such a bad thing, it happens all the time. It’s raining, so we go to Plan B. The restaurant is closed so we go to another. These sorts of changes don’t seem to bother us so much. But change the compensation plan and watch out!!! The thing is, any compensation plan that hasn’t changed in a while is probably no longer an effective plan. Yet changes cause stress, uncertainty and certainly encounter resistance. One of my favorite quotes about change comes from Machiavelli and goes something like this: It must be considered that there is…

Nonexempt FLSA Earnings Threshold

It is official – we have the number, now it’s time to consider the effect. The number is $47,476 annually.  That’s the 40th percentile of earnings of full-time salaried workers in the lowest paid census region, the South.  And it adjusts every three years (the original rule would have adjusted every year but for voracious feedback from the HR community).  If you pay an employee less than that (in most cases), you’ll need to determine what next steps to take once the law takes effect on December 1, 2016. Here’s a link to the DOL announcement: https://www.dol.gov/whd/overtime/final2016/ According to a…

Think Outside the Box
A Periodic Challenge: New Mindset, New Results

A Cost-of-Labor Portfolio “What is our average compa-ratio Jim?” asked the CEO as I sat down to report on our annual focal exercise. Having been through enough of these meetings over the years, of course I had the answer; as a matter of fact, I had it calculated not only for the whole company, but for each division, each country and each corporate function. But I didn’t want to just spout off the answer, I wanted to educate him about how to think differently about his labor costs. Unfortunately, he had worked with enough compensation professionals over his storied career…