More companies tying executive compensation to ESG metrics

More companies are tying executive compensation to sustainability metrics despite ESG backlash, according to a report by compensation consultant Farient Advisors.

“Companies are aware of an ESG backlash in the U.S., but maintain their focus on long-term value drivers, which often are inextricably tied to ESG factors,” said the report, 2024 Global Trends in Stakeholder Incentives: What’s Next?  READ MORE

A running list of states and localities that have outlawed pay history questions

State and local governments are increasingly adopting laws and regulations that prohibit employers from requesting salary history information from job applicants.

The laws are aimed at ending the cycle of pay discrimination and some go further than merely banning pay history questions. A few also prohibit an employer from relying on an applicant’s pay history to set compensation if discovered or volunteered; others prohibit an employer from taking disciplinary action against employees who discuss pay with coworkers. READ MORE

‘Women’s Work’ Powers the Economy—And Has Always Been Undervalued

Since 1996, advocates for women’s rights have marked “equal pay days” every year to raise awareness about the ongoing gender pay gap that persists despite women's increasing educational opportunities and workplace attainment. This year, Tuesday, March 12, marks that disparity—or how far into 2024 it takes a woman who works full time to make the same amount of money a man working the same hours made in 2023. On average, women still only make 84 cents for every dollar men make, with the gap far more stark for women of color. (Native women’s equal pay day, by comparison, won’t be reached until November 21.) And these figures don't include the unpaid domestic and caregiving labor that women continue to disproportionately bear. READ MORE

New Law Guarantees Paid Time Off for All Illinois Residents

Many Illinois residents now have guaranteed access to paid time off without providing a reason to employers. 

On January 1, 2024, the Paid Leave for All Workers Act was introduced to the Illinois General Assembly in a monumental milestone for workers’ rights.

According to the Illinois Department of Labor, guaranteed paid time off without specific cause has only been adopted by two other states, Maine and Nevada adopting similar acts in 2019 and 2020 respectively.  READ MORE

States With the Biggest Gender Wage Gaps

Mind the gap – it’s more than $11,000 wide.

That’s the difference between the annual median earnings of full-time male and female workers across the U.S., according to the latest data from the U.S. Census American Community Survey. Among civilians working full time in 2022, the year of the most recent data, women’s median earnings were $51,400, while men’s median earnings were $62,668. That means that for every dollar that the typical man earned, the typical woman earned about 82 cents. READ MORE

How Organizations Can Take a Systematic Approach to Pay Equity

Why do companies continue to struggle with pay equity, more than 60 years after the passage of the federal Equal Pay Act (EPA)? In 2022, U.S. women had median annual earnings that were only 84 percent as much as those for U.S. men, according to the U.S. Department of Labor. Meanwhile, a 2022 study sponsored by UKG found that less than half of employees (41 percent) believe their employers have successfully achieved pay equity, even though 74 percent of executives consider pay equity a moderate or high strategic priority.

Perhaps the problem isn’t a lack of awareness or support among business leaders. Instead, the issue may be that organizations are trying to solve the issue on a tactical level when a more strategic, systemic approach is needed. READ MORE

3 in 4 Organizations Regularly Audit for Pay Equity

March 12 is Equal Pay Day, marking how far into the new year women must work to earn what men earned in the previous year. Pay inequity continues to plague U.S. workplaces, but new research by SHRM indicates that HR professionals are committed to paying employees more fairly.

Seventy-five percent of organizations say they regularly audit for pay equity, according to the survey of 777 HR professionals. The characteristics most commonly assessed in pay equity audits include gender (80 percent), race or ethnicity (68 percent), and age (62 percent). READ MORE

Which States Have a Flat Income Tax?

While the federal government applies a consistent tax system to every citizen, states have tax rates they set independently from Uncle Sam. States can apply flat taxes, graduated taxes, or no taxes to their residents. If you don’t know about your state’s current income tax system, finding out can help you compare how much you would pay by staying or moving to another part of the country. Here is every state that currently uses a flat income tax and how it could benefit you. If you’re looking for need hands-on guidance with tax planning, a financial advisor could help you lower your tax burden. READ MORE

Corporate Governance Takeaways Following Rescission of Elon Musk’s $55.8 Billion Equity Compensation Package

“Was the richest person in the world overpaid?” That’s how the Delaware Court of Chancery (the Court) began the 200-page opinion in Tornetta v. Musk to rescind Elon Musk’s entire $55.8 billion 10-year equity compensation package after a ruling that the directors of Tesla breached their fiduciary duty in approving such a robust compensation package for its chief executive officer. The decision in the case and the factors focused on by the Court offer key lessons for boards and compensation committees and is a reminder of the importance of following and documenting the process for approving executive compensation. READ MORE

Are Millionaires Considered Middle Class in Today’s Economy? Here’s What Experts Say

Is it possible to be a millionaire and still be part of the middle class? It’s a question that may seem ridiculous to some–and totally reasonable to others, depending on who you ask.

“I’m often caught in the middle of this hot debate on middle-class identification, especially when millionaires are thrown into the mix,” said Zachary Jarvinen, vice president at Exact Payments. “As a finance expert, I see where the lines blur. Traditionally, middle-class status has been tied to income, education and occupation. But today, it’s about so much more — lifestyle, assets and even self-perception. READ MORE

How Understanding Compensation Can Help You Negotiate Better Pay

With 10 U.S. states enacting some form of pay transparency legislation, there is growing momentum towards achieving pay equity. Because there isn’t yet a federal-level view, companies are responding in different ways, and none yet seem to have moved to full nationwide pay transparency. Despite that, job seekers (and employees negotiating pay raises) now have more information than ever before, and understanding how to interpret publicly available data, and how that fits into corporate compensation structures, is critical to making the most out of salary negotiations. READ MORE

Five Key Areas That Will Affect Sales Incentives in 2024

As we get deeper into 2024, five key areas have emerged that organizations are addressing when considering their new sales incentive strategy and focus. 

Some of these areas have a direct impact on sales compensation plan design, others are areas being contemplated for the change needed in a sales rep’s skills, traits, drivers and/or behaviors. To remain aligned, your sales compensation plan will need to support these areas and not conflict with the new market dynamics.  READ MORE

How pay raises can be a critical tool to boost employee experience

When it comes to the modern employee experience, a new survey has bolstered the idea that when all is said and done, one of the best ways to drive a positive EX is by helping employees strengthen their financial wellness.

The report, “Champions of Change: How HR Decision-Makers Are Delivering Employee Experiences That Matter” from HCM provider isolved, found that 59% of organizations have given cost-of-living raises to employees in the past year, and 32% plan to do so in the near term. For its fourth annual report, isolved surveyed more than 1,000 HR leaders across various industries regarding HR’s biggest threats, successes, and opportunities. READ MORE

States where minimum wage is on the rise

The beginning of 2024 brought minimum wage increases in 22 states, the latest instances of a decade-long trend, according to the National Employment Law Project, a nonprofit group which advocates for workers rights.

Meanwhile, the number of states with minimum wages set at $15 or more expanded this year, going from four including the state of Washington, California, Connecticut and Massachusetts as well as the District of Columbia to seven states as of Jan. 1, with Maryland, New Jersey, and New York State piling in. Joining these states by 2025 will be Delaware, Illinois and Rhode Island, with more anticipated by 2026, according to NELP. READ MORE

A Colorado ski town can't fill a job with a $167,000 salary because potential candidates can't afford to live there

As many rural communities struggle to deal with a jump in housing prices, it's apparently gotten so bad in one Colorado town that a $167,000 salary isn't enough to find an affordable place to live.

A recent report from NBC News detailed how even high earners in Steamboat Springs, Colorado, can't afford to live there, and it's affecting the city government. Gary Suiter, the Steamboat Springs city manager, told the outlet that the town has been unable to hire a head of human resources, with two candidates turning down the job because they couldn't find affordable housing, despite the prospect of a six-figure salary. READ MORE

Important Changes and the Impact of California Industry-Specific Minimum Wage Laws

In the ever-evolving landscape of California labor laws, the minimum wage has once again taken center stage. With the recent state-wide increase to $16 per hour, the Golden State continues to lead the nation in setting minimum wage standards. However, the latest developments go beyond a blanket increase, introducing industry-specific changes that will significantly impact certain sectors. READ MORE

3 Soft Skills You Need To Boost Your Salary In 2024

Have you ever wondered what constitutes the secret sauce of career success and growth? How do you multiply your salary and increase your worth in your industry and job market?

You may think that the world's most successful people within their domains achieve their attainments because of factors such as always knowing the right people at the right time, being part of the elite, or having access to high-quality education. But while this may be partially true, there is only a small percentage of people who fulfil this criteria. It is indeed possible to experience career fulfilment and success at any stage of your career journey, and significantly boost your take-home salary, even without access to these well-esteemed privileges. READ MORE