Dealing With Salary Compression During the “Great Resignation” Era
You came to work early today with the hope of having some “quiet time” to catch-up on that lengthy “to-do” list that seems to be growing each day. After a few minutes of peace, and half-way through your first cup of coffee, the phone rings and it’s your Procurement Manager who needs your help…right now! The manager informs you that one of his top employees just notified him of an offer she’s received from another employer, which includes a 20% increase. In addition, she told him that folks throughout the department have been talking about looking for work elsewhere, and that she shared her “good news” with 3 others in the department before coming to his office to discuss options. The manager is adamant that he cannot afford to lose these people and wants to counter-offer even though he knows that in doing so, this scenario will likely be repeated again and again, and that those willing to quit will likely negotiate pay rates far above their comparably qualified peers. Now he wants to know what you are willing to do to help him. Can you relate???
Welcome to HR in 2022! The technical term for this phenomenon is “salary compression”, and it’s grown to epidemic proportion in the workplace today, and it understandably results in a vicious spiral of pay practices that often seem inequitable, unappreciative, and demoralizing to existing staff members.
The learning objectives of this session will address:
- The nature and causes of “salary compression"
- Options available to HR professionals for dealing with it in the short-term, and
- Proactive strategies employers can adopt to address salary compression, keep it from spreading, or better yet, “prevent” it from occurring in the first place.
Jim offers seasoned experience in compensation and rewards, strategic and organizational planning, as well as organizational change management. During his career he has assisted numerous clients implement the organizational architecture, structure, infrastructure, and strategic plans required to achieve their visions and goals. In addition, he has assisted other organizations build strategically-focused compensation & reward programs, as well as other human resource management initiatives, by introducing forward thinking approaches to talent management.
During his career Jim has served as the CHRO for several prominent organizations including Carle-BroMenn Healthcare (Bloomington, IL), Our Lady of the Lake Regional Medical Center (Baton Rouge, LA), SCAN Health Plan (Long Beach, CA), and the Office of the Legislative Auditor (Baton Rouge, LA). He has also been associated with several leading consulting firms including Ernst & Young LLP, Hay Management Consultants, and First Transitions. Jim currently maintains an independent consulting practice under the umbrella of JT Stodd & Associates and has provided consulting services to a diverse mix of clients including those in the healthcare, manufacturing, technology, construction, professional services, petrochemical, finance, government, education and nonprofit sectors.
In addition to his career as a management consultant, Jim has taught classes in Organizational Leadership and Human Resource Management at Louisiana State University as well as served as the principal instructor for the Human Capital Management Certificate Program at the University of New Orleans. Prior to that he taught related subjects at the University of California-Irvine where he received UCI’s “2010 Distinguished Instructor” award. His educational preparation includes a B.A. in Psychology from Saint Louis University and a M.S. in Industrial/Organizational Psychology from Illinois State University. He also completed extensive post-graduate work at the Industrial Relations Center of the University of Minnesota. Jim has earned lifetime certification as a “Senior Professional in Human Resources” (SPHR) as well as a SHRM-SCP credential.