So which is more important to employees, pay or benefits (specifically health benefits)? In last week’s Workforce Management’s newsletter, a nationwide survey was recently conducted by the National Business Group on Health that asked 1,619 employed people that specific question. They found that employees in the U.S. consider their health plan to be their most important benefit. Furthermore, in a world of rising health care costs, employees would rather give up wage increases and other benefits to preserve health care coverage. More than 50% said they would accept fewer choices in order to keep their premiums low and roughly 75% would rather receive employer health benefits than get paid more… Read More
Continue ReadingCompensation Limitations Part Deux
As you would expect, my interpretations of the articles referenced by Herd Enuff’s comment are much different than the musings of the young lad known as the Velvet Hammer. I’m assuming the young lad chooses to ignore the aforementioned differences between the private and public sector for a reason. Perhaps it’s because of the harsh realities of situations like the Enron scandal. Or maybe the real need for legislation like Sarbanes Oxley, or the latest SEC disclosure rules – designed to protect the “average” investor from greedy C-level execs. Unless you’re a strict libertarian, you’ll have to admit that you enjoy the benefits of our “horrible government intervention” every day.… Read More
Continue ReadingExecutive Salary Caps Continued
I am attempting to stoke this fire some more with Red Bird. One reader posted a comment to yesterday’s post stating this: You guys must be living under a bush somewhere back east. Have you ever heard of the golden parachute? Show up, don€™t do anything, get fired and walk away with millions. It€™s great gig if you can get it. Chew on this http://www.washingtonpost.com/wp-dyn/content/article/2007/01/03/AR2007010300553.html or this http://blogs.wsj.com/deals/2007/04/10/a-53-million-golden-parachute-for-sprints-forsee/ Fair enough – I know this is an emotional topic for many people. However, emotions are not the best option for rational decision-making. I think most people will agree that CEO’s do more than “Show up, don’t do anything, get fired and… Read More
Continue ReadingCompensation Limitations
The illustrious Mr. Hammer has been attempting to illicit a response from me regarding Executive Compensation. His latest post Why Executive Salary Caps Don€™t Work requires a response. Maybe I missed it in his post, but, I don’t see where Mr. Hammer separates the “Public” domain from the “Private” domain. Two very different worlds. First a confession. I’ve been known to manage and exploit a compensation plan to it’s fullest. Actually, I am quite proud of the fact that I’ve made some CEO, CFO and HR types very, very unhappy. Getting the most out of a compensation plan is EXACTLY what you should expect from a top-level sales person. Exactly… Read More
Continue ReadingWhy Executive Salary Caps Don’t Work
The title of this post is a shot across the bow of Red Bird since he and I go toe-to-toe on this topic. I am a strong proponent of letting the market determine executive pay. I trust the market as the best arbitrator of compensation. The principle works every time it is tried – if the executive is overpaid, he or she will be dismissed. If they are underpaid, he or she will receive an increase. Seems fair to me. I realize I am oversimplifying the issue, but I want to make a point. It does not bother me that the head of Exxon received a $400 million comp package.… Read More
Continue ReadingRetention – Bad Moves And A Good Move
If you have noticed in our posts, we are paying more and more attention to retention. (say that 10 times fast!) The employment market clearly indicates that it’s a hot topic. Over the years, two compensation moves really set off the negative alarms in my mind. They also made me, as a sales manager, more aware of how compensation impacts salesperson performance. Increased quotas. When quotas are increased (which isn’t necessarily “bad”), the first thing I always looked for was the corresponding compensation. If the message was “We need you to sell more,”that’s fine as long as everybody in the organization wins. However, trouble developed when the message came through… Read More
Continue ReadingSales Manager Compensation for Retention?
A recent conversation brought to mind the responsibility of sales management for the development of both existing and new sales people. Why? Retention. As the employment market has shifted to an “employee market” – at least for talented sales professionals – sales management needs to make plans to retain sales people. After all, the talented sales person chose you and your organization, just as you chose them. Don’t kid yourself…this isn’t a one way street. Far from it my friends! Those tasked with the responsibilities associated with sales management (regardless of the title given them) have a wide variety of tasks that need their attention everyday. The investment in sales… Read More
Continue ReadingFixing A Dis-incentive Plan
OK, the Rock Star really hit a nerve with his recent post – A Commission Plan Gone Bad. I’m having flashbacks to a comp plan that still makes the hair on the back of my neck bristle. When a comp plan becomes counter-productive -and the sales team is talking – you’ve created a monster. I can only think of one thing worse – have the paychecks bounce! The profile for the most productive sales people tells us that messing with compensation and the perception of deception is the beginning of the end for retention. Sales people want and need to believe that they are being treated honestly, fairly and with… Read More
Continue ReadingA Commission Plan Gone Bad – Update
The saga continues. My friend as gotten to be a great resource for me on what not to do for sales management and incentive plans. Just after the last post a new turn of events transpired in regards to this latest contest. As I mentioned, her team was challenged to sell 2 specific add-on services (both truly commodities). Extra spiff’s were added by the manager to “motivate” the sales team. One of the team members actually went out and sold 10 of these services which should have entitled them to a half day off (and no small feat to accomplish these sales). Yet, the weekly report listed only 1 sale.… Read More
Continue ReadingShow Me The Time Compensation
In the 1996 movie Jerry Maguire, Tom Cruise made the phrase “Show me the money” famous. In fact, the phrase has become an American icon in several ways. Eleven years later, it appears candidates are saying “Show me the time.” Time off for family, friends and fun. According to a recent survey by the Association of Executive Search Consultants, 85% of recruiters have seen candidates reject a job offer because it wouldn’t include enough work-life balance. And 90% of recruiters say work-life balance considerations are more important now than they were five years ago. Information from other levels of employment – not just the executive levels – suggest exactly the… Read More
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