This examination of how organizations determine pay for their workers, and how to enhance pay equity deserves a spot on every employee and HR bookshelf. Compensation insider David Buckmaster provides an illuminating discussion of what constitutes fair pay and a living wage. Expertly combining the micro and macro, Buckmaster explains the historical and structural impediments to pay equity and offers compelling arguments for the business benefits of just compensation.
Few employees understand the complexities of setting compensation.
Corporate HR teams study proprietary salary survey data and industry benchmarks to determine the “minimum viable pay” their organizations can offer, while still attracting and retaining talent. Compensation experts simply do what virtually every firm does: pay the least possible amount for the greatest potential return. They attempt to link pay, including bonuses, to what they want employees to do – whether that means selling more, working longer hours or taking more risks.
Contrary to conventional wisdom, supply and demand does not determine wage rates. Government regulations, the economy, your influence and bargaining power, and other factors shape your compensation. Economic swings, new boards of directors, legacy policies, reorganizations and acquisitions, for example, can throw compensation systems out of whack. No firm can maintain fair pay at all times, regardless of intent.
Unfair pay arises intentionally and unintentionally.
Employees seeking fair pay lack access to the information firms use to determine...
David Buckmaster is an expert on pay. He is the Head of Total Rewards at Wildlife Studios, and has managed global corporate compensation teams at companies like Nike, Starbucks, and Yum!