In a BLR webinar entitled "Pay Grades and Salary Increases: How to Build a Competitive, Equitable Compensation System in Your Workplace This Year," Dan Kleinman, principal of Dan Kleinman Consulting explained that today's "Great Recession" economy (dating back to 2008 and forecast to linger for a number of years in many industries) poses huge challenges for employment in terms of compensation practices:
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- Base pay budgets are likely frozen or shrinking
- Budgets for general increases, merit increases and bonuses are struggling too
- Spending is less on employee benefit programs
- You've survived rounds of layoffs already (or you've narrowly avoided the prospect so far)
- Key employees lost have gone elsewhere, despite the bad economy
- Employers are spending much more time focused on (and worrying about) their pay and benefits
Goals going forward should be to:
- Attract and retain the best talent you can afford
- Plan ahead for future workforce needs
- Take time now to review -- and, if needed, restructure -- compensation systems and practices
Dan Kleinman is the principal of Dan Kleinman Consulting (www.dankleinmanconsulting.com), a California-based compensation and human resource consulting firm. For the past 18 years he has served a broad spectrum of regional, national and international companies providing compensation, performance, organizational planning and reward-system design services.