Compensation

Salary Expectations

Salary negotiations can be hard. It can be intimidating to try to find a number that works for the company and the candidate, but it is vital in keeping the candidate aboard for the long haul if you hire them, and it plays a big role in creating a company culture where employees feel valued and important. You always want to make your employees feel valuable to your company, and that all starts in the hiring process. Read on to learn how to navigate your candidate's salary expectations to ensure success.

Tuition Reimbursement

Those who understand retention know that turnover is costly. Contrary to old school business, modern employees only stay with a company for an average of 2-5 years. It’s imperative that companies create initiatives to lengthen retention and develop their workforce to meet future needs.

Have you considered tuition reimbursement as a possible solution to this? Take a look and see if tuition reimbursement is right for your company.

Payroll Records

Every employer must maintain detailed payroll records on each employee throughout the employment relationship. These records include documentation about wages, taxes and other employment information. But what should you keep, why is it so important and what do you do when the documents are no longer relevant? These questions and more can make payroll records complicated and cumbersome.

This article serves as a guide to help you maintain an accurate payroll record for your employees. You’ll learn everything you need to know to feel confident in your recordkeeping.

Meet the Market Compensation Strategy

Developing a compensation strategy and determining your company’s strategy in the market can seem like an overwhelming process. Our goal is to make it simple and take some of the confusion out of that process as we discuss a “Meet the Market” strategy.

Compensation Philosophy

Your compensation philosophy is the organization’s position and approach to rewarding employees for their work. The compensation philosophy will help inform your more specific compensation strategy and define your position within the competitive market.

Continue reading to learn what a compensation philosophy is, why it’s important to define one, how to develop a compensation philosophy and how to write a compensation philosophy statement.

Salary Range

Naturally, salary is a huge part of recruiting top talent. How to define and communicate a position's salary to candidates can be challenging. Most companies advertise open positions with a salary range. It defines the lowest and highest base salary you will pay for a specific position or group of jobs.

Continue reading to learn what a salary range is, factors that affect salary ranges, how to determine salary ranges for your positions, and tips on how to communicate about salary expectations with candidates.

Base Pay

Do you know what base pay is? Is it salary, compensation, or a wage? There are many ways to talk about paying your employees. Maybe too many ways! Don’t worry. In this article, we’ll answer these questions and more so that you know how to calculate, set, and change employee base pay.

Additional Pay

There are a lot of reasons to supplement employee wages with additional pay. You may find yourself looking for ways to correct an error, show appreciation, improve performance, encourage participation in a program or sweeten the deal for a new hire.

Whatever the reason, knowing the different types of additional pay and how they serve the employment relationship is an important part of Human Resources management. This article will show you the basics of additional pay and when to use it like a pro!

Lead the Market Compensation Strategy

Have you ever suggested paying an employee more than the going rate and gotten some pushback? When you set your salary ranges above the market rate, you are using a lead-the-market compensation strategy. While it comes with financial risk, it can have several benefits.

Continue reading to learn what a lead-the-market compensation strategy is, its advantages and disadvantages and how to know if a lead-the-market compensation strategy is right for your company.

Salary

In every industry, companies have to decide whether to pay their employees a salary or hourly wage and how much to pay them. In reality, there are both advantages and disadvantages to paying employees on a salary. In this article, we’ll help you understand what a salary is, and what paying employees a salary will mean for your company.
Eddy's HR Encyclopedia

Compensation

Today, the world of compensation is more diverse than ever before. Companies no longer create compensation plans that scream dollar signs and long work days. They’re creating plans that send a new message—one that says, “We care about your work-life balance, personal goals and health.”

So what can you really include in a compensation plan? Today, we’re answering that question. Spoiler alert: it’s not just money, insurance and retirement.
Eddy's HR Encyclopedia

Hourly Wage

In HR, we often have to figure out whether an employee should be paid by the hour or by a salary. There are pros and cons to each, but it may be better to pay an employee by the hour under certain circumstances. In this article, we’ll help you determine whether you should pay your employees by the hour, and when it’s required.
Eddy's HR Encyclopedia

Payroll

Are you struggling with payroll? We understand! Running payroll is absolutely necessary, but it’s a complicated process, and even the best of us have trouble doing it manually. We understand the struggle, so we’ve created our guide to understanding payroll and the various ways to do it. If you need help understanding payroll, you’ve come to the right place.
Eddy's HR Encyclopedia

Salary Survey

How do you know the right salary range for a position? HR struggles with this all the time because industry standards change as the job market changes. One of the most helpful tools for setting salary ranges are salary surveys. In this article, we’ll help you understand what a salary survey is, where to get them, and how to use them.
Eddy's HR Encyclopedia

Sales Compensation

The cost of salaries, benefits, and unnecessary attrition is a significant expenditure for organizations. Add variable pay to the mix and sales compensation can be the most expensive, complex, and detailed of all compensation plans.

Creating a strong sales compensation plan ensures that the organization is able to plan for and manage a successful sales strategy as well as attract and retain motivated sales professionals who directly contribute to the profitability of the company.
Eddy's HR Encyclopedia

Executive Compensation

Executive compensation may be one of the most important financial decisions a growing company makes. However, it is frequently one of the most debated and criticized - by employees, boards of directors, stockholders, and the public.

The fact is, an executive’s compensation is tied to what expertise they can bring to the table and reflect their investment in the business. And how can a company thrive and compete without a leader who is completely committed to the success of the organization?

The short answer - it can’t.
Eddy's HR Encyclopedia

Lag-the-Market Compensation Strategy

Are you considering implementing a lag-the-market compensation strategy? Although lag-the-market strategies are usually rife with pitfalls, there are some benefits to implementing a temporary or mixed approach. But it has to be the right plan for you. So, if you’re considering lagging the market, read this first.
Eddy's HR Encyclopedia

Job Classification

Job classification is the process of evaluating jobs and grouping them into categories based on similar skills, abilities, tasks, experience and other criteria. Creating a job classification system can help provide an overview of your organizational hierarchy and evaluate employee performance.

Continue reading to learn more about job classification, why it’s important, criticisms of job classification and how to create a job classification system for your company.
Eddy's HR Encyclopedia

Compensable Time

Compensable time includes any hours that an employee is required to work or be on company premises. It is regulated by the Fair Labor Standards Act (FLSA). Not all work-related activities are compensable, but incorrectly compensating employees can result in legal penalties.

Continue reading to learn what compensable time is, what activities you must compensate employees for, what activities you don’t have to pay employees for and what the penalties are for incorrectly compensating your employees.
Eddy's HR Encyclopedia

Time Tracking

Tracking your employees’ time helps you remain compliant with laws and regulations, and provide insight into how your employees are spending their time on specific tasks.

Continue reading to learn what employee time tracking is, why it’s important and how to start tracking your employees’ time.
Eddy's HR Encyclopedia

Compensation Strategy

A compensation strategy is how your company approaches employee compensation. When developing a compensation strategy, it’s important to consider how competitors compensate their employees and where you want your organization to sit in the competitive field. A strong compensation strategy is required if you want to recruit, attract and retain top talent.

Continue reading to learn what a compensation strategy is, why one is important, types of compensation strategies and how to develop a compensation strategy for your company.
Eddy's HR Encyclopedia

Gross Pay

In the world of payroll, you have to calculate tax deductions, benefits contributions, taxable income and net pay every single pay period. Although deductions might be unique for each employee, every calculation is based on gross pay.

Your understanding of gross pay is essential not only for accurate paychecks, but also to be able to explain those numbers clearly to employees. So, what is gross pay?
Eddy's HR Encyclopedia

Net Pay

Calculating net pay is the single most time-consuming process in payroll. It’s complicated, unique for each employee, and frankly, easy to get wrong. Here at Eddy, we created a thorough, step-by-step guide to help you calculate net pay accurately.
Eddy's HR Encyclopedia

Incentive Pay

In your constant search for ways to motivate employees, you may consider adding incentive pay to your compensation program. If you are, you’re probably wondering whether it works or not. Really, whether incentive pay is right for you depends. In this article we define what incentive pay is and lay out the main advantages and disadvantages everyone should consider before implementing their own incentive pay plan.
Eddy's HR Encyclopedia

Pay Adjustment

Paying people fairly is a challenge every HR department faces, and there are many factors to consider. Why and when would you adjust a person's pay? How do you do so fairly? What’s the best way to communicate a pay cut to employees? Regardless of whether you’re considering a raise or a pay cut, there are some things every HR professional should know.
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