A pay philosophy is a company's commitment to how it values employees. A consistent pay philosophy gives the company and the employee a frame of reference when discussing salary in a negotiation.The goal of a pay philosophy is to attract, retain, and motivate employees. For companies in the private sector, this usually requires a competitive pay philosophy. For companies in the public sector, this means a well-rounded philosophy, with a focus on benefits and work life.Companies attract, motivate, and retain through total compensationThe purpose of a good compensation philosophy is to attract, ... view article details

                        One of the biggest challenges facing employers is recruiting and retaining qualified, dedicated employees. Over the past decade, with unemployment levels low and the economy doing well, one of the ways businesses in many industries were recruiting the best possible talent and keeping those employees happy was by offering stock options. For the first time ever, the trend extended not just to top-level managers and executives, but to people throughout the organization.As a result, the ability to participate in an employee stock option plan became an integral part of many ... view article details

Types of Bonuses There are several types of bonuses. Some plans simply give employees a certain share of the company profits, or perhaps a bonus to the entire company. Other programs give incentives to individuals or teams to perform at or above certain thresholds. And a variety of cash and noncash awards are possible for certain types of achievements in some companies. You can even earn bonuses for being hired or getting your friend a job at your company. The following article details 10 types of bonuses that are typically seen in the workplace. What is Profit Sharing? One very basic type of ... view article details

Q. I relocated by choice. When I relocated, I couldn't keep the same position with my company. Now the company has offered me a position comparable to the one I left behind, but at the pay rate I was at before my position changed. What boundaries does my company have to adhere to, and should they calculate a cost-of-living increase? My immediate supervisor told me the cost of living was lower here than where I moved from. But after doing a little research I found that the cost of living is significantly higher where I am now.A. Since this was a voluntary move, the company is under no obligatio... view article details

Q: I have researched all over about what kind of compensation you should get for being on call, but have found nothing. Right now I get paid for three extra hours each week for being on call Monday through Sunday from 7pm to 5am. When I get called in, I am guaranteed a minimum of two hours' pay. When I was employed at another company I was on call for a week and I got paid two hours on the hour after my regular work day (16 hours), and that was for seven days. When I got called in I got paid for four hours automatically.This seems like a big difference. I would like some information to present... view article details

Q. I recently changed jobs, and my new employer refused to honor their verbal salary offer. Asking for a written agreement would have been out of the ordinary for the position I accepted, so I didn't even consider it. Would depositing my paychecks harm any legal actions I may take? Besides looking for another job, what should I do?A. It's never a good idea to accept a verbal offer. Some employers make verbal offers, but its always a good idea to tell an employer you will formally accept the offer only after they send you the offer in writing. If an employer for some reason doesn't make a writt... view article details

Q. I was recently promoted to a higher position and given a form stating my change in position and salary. However, the form said I was receiving an 'equity adjustment' as oppposed to a promotion. What is the difference? Was it my boss's way of cheating me out of a higher percentage increase or vice-versa? Also, what is a typical percent increase when promoted to a higher position?A. An equity adjustment is typically given to an employee when the company wants to bring his or her salary in line with either the internal or external 'competitive wage.' A promotional increase, on the other hand, ... view article details

Employees in approximately one-third of all companies are eligible for bonuses of some kind. Bonuses are given to employees to serve the following purposes: to create incentives to reduce costs; to pay people for doing a good job; and to encourage employees to think like shareholders.Bonuses reflect your level of responsibility in the organization, making up a larger portion of your total compensation as you take on more responsibility. To ensure accountability and to reward you for your responsibilities, companies tie portions of employees' pay to both individual and company successes. Corpor... view article details

In researching the pay for an executive position, it's best to consult several of the many sources of data to get a sense of the range for the job. Don't aim for the top of the range, because there could be unfortunate consequences if you become too expensive.It's relatively easy to get executive pay data for public and nonprofit companies. Publications such as The Wall Street Journal publish information about CEO compensation. A more detailed and more immediate source is your company's annual meeting proxy (DEF-14A filing) if the company is public. You can get it from your company's investor ... view article details

Q: Do I have a right to view the compensation band for my title?I've just been promoted to MIS manager and I know my new base salary is $22,300 less than the minimum starting salary for my title. Online market surveys support this claim. I can't admit that I have seen the comp band for my title because it would aversely affect the person who showed me.My boss refuses to discuss my salary, except to say I don't have enough experience and he doesn't expect as much from me as others with my title. What are your thoughts?A: I'm not an attorney, but I don’t know of any law that requires a company t... view article details