It’s Time to Push the Reset Button on Your Compensation Program

By Fred Crandall

We have incurred much pain in the workforce over the last thirty six months – layoffs, pay freezes, pay cuts, benefit cuts, smaller bonuses or no bonuses at all and discontinuation of benefits. Surviving employees who have lived through these changes have been asked to take on more work in this environment, and they have not gotten the sense of job satisfaction or security they once had. As the employment market begins to heat up, employees are looking for answers to questions about the future, such as: “What’s the new normal for our company…when we will get there…and what do we need to do?” Because of such significant change and lack of certainty, we face a unique once-in-a- generation opportunity to wipe the slate clean and define a “new deal” with employees:

  • What we are offering employees now (and in the future); and,
  • What employees can expect in return

This opportunity directly involves how we are going to deal with people – the job offer package for hiring new employees, promotion pay increases, base pay increases and incentive compensation. Our clients are telling us that many of these practices do not fit the changed internal and external work environment. Once more, bringing in new people will accelerate the need to change our past practices.
So what are the opportunities you should take advantage of to define the “new deal”?

  • Restoring pay cuts - separate your “catch-up” increases from other pay actions and communicate why you are making these increases now
  • Paying increases - consider individual performance in making pay increases – not across the board increases
  • Dealing with employee complaints - don’t ignore them – take them seriously, because your current employees have been with you during the rough times!
  • Considering new hires – avoid disrupting the internal alignment of salaries and don’t blind-side your current employees

We have the attention of our employees. They are waiting to hear what we have to say and what we will do!

OUR MISSION

Over the last three years we have seen unprecedented turmoil in the business world and labor markets. Virtually all organizations have experienced pain and diminished expectations.

After repeated downsizing and reductions in business operations we are establishing a toe hold for a healthy new start. But we now face an era of rebuilding that is also on an unprecedented scale. 

Out of this chaos we reaffirm that competitive advantage will be based on the foundation of the effective utilization of people:

As we recover from this business downturn and expand business operations, we will support our clients with the opportunity to “get it right” with people this time.

Human resources

WHAT WE DO

Eastwood Group Partners is a consultancy that will help you get it right. We partner with clients to develop and deploy integrated human resource strategies, including: