The Top 6 Compensation Articles of 2016

A year-end look at some of our most-read items about pay practices

Stephen Miller, CEBS By Stephen Miller, CEBS December 20, 2016

From salary budget forecasts to the rise of ratingsless reviews, these six articles on pay topics were some of the most-read all year on SHRM Online. They describe developments and trends that will have a continuing impact in 2017:

Salary Budget Expected to Rise 3% in 2017
Despite some signs of labor market tightening, compensation managers expect their base pay budgets for next year to increase by only about 3 percent, little changed from the past two years. But keep an eye out for faster—or slower—than expected economic growth, which could alter these predictions.

Study: Beware 'Toxic' Influence of Low-Performers
Organizations are falling short when it comes to rewarding and retaining high-performing employees—those who are self-motivated and hardworking. Worse, companies that don't deal with "toxic" low-performers risk weakening their culture and driving away their best people.

Undoing Overtime Pay Changes Could Be Tricky
Some workers welcome being paid for overtime hours worked; others felt demoted when told that they would be paid hourly. For employees who like their change to nonexempt status, it might be worthwhile to keep it in place, even though the Department of Labor's new overtime rule raising the salary limit has been put on hold. But if employees felt demeaned by being reclassified as nonexempt, consider reverting them back to exempt status, an employee relations expert advised.

[SHRM members-only toolkit: Building a Market-Based Pay Structure from Scratch]

Big Companies Are Raising Wages for Lower Earners
Facing labor cost hurdles, companies are trying to figure out how to stay competitive without busting their pay budgets. On the other hand, nobody wants to be the company that's the last to raise its rates and risks losing its good talent.

Employers Seek Better Approaches to Pay for Performance
Despite embracing the concept of pay for performance, a surprisingly large number of employers say their programs aren't doing what they were designed to do: drive and reward individual performance. That's leading organizations to adjust both their merit pay and annual bonus tactics.

Ratingless Reviews Positively Affect Pay Practices
As more employers abandon annual scale-based employee ratings, many are turning to ratingless appraisals to evaluate and reward employees—focusing on performance and consequences, not rankings or grades.

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