Why HR is spending less to attract employees but more to keep them

During the Great Resignation, job hoppers landed a median pay increase of more than 20% when they joined a new employer, according to a recent Bank of America report featuring aggregated and anonymized data from the institution. But as of May, that increase has fallen to around 10%, as unemployment has risen to over 4% in the past year. 

For talent acquisition leaders, the slowdown in salary increases bodes well for significant savings as they recruit candidates. However, employers may still have to spend big to retain employees. According to a global survey by recruiting solutions provider Hudson RPO, those who are thinking about leaving their current employer say they would reconsider the move for a minimum 30% salary increase. READ MORE

Trump Wants To Eliminate Income Taxes: How Will This Impact the Upper Middle Class?

Former President Trump said in a private meeting recently that, if he’s reelected in November, he would impose an “all tariff policy.” This would result in no income tax for Americans. During his first term, Trump also favored tariffs when it came to foreign affairs, so it’s no surprise that he would continue to propose tariffs during his second term. In the recent private meeting, Trump also said he would continue to use tariffs as a way to negotiate with “bad actors” abroad.

Not having an income tax seems like it would be an automatic win, but what ripple effects would it have on American workers? What would this mean for the economy, specifically the upper middle class? GOBankingRates reached out to political and financial experts to get their take on what the upper middle class would see if there was no income tax. READ MORE

US agency says apps that let workers access paychecks before payday are providing loans

The Consumer Financial Protection Bureau said Thursday that apps that allow workers to access their paychecks in advance, often for a fee, are providing loans and therefore subject to the Truth in Lending Act, a 1968 law that requires lenders disclose all loan costs and fees.

If enacted, the proposed rule would provide clarity to a fast-growing industry known as Earned Wage Access, which has been compared to payday lending. The agency wants borrowers to be able to “easily compare products” and to prevent “race-to-the-bottom business practices,” CFPB Director Rohit Chopra said on a call with reporters. READ MORE

Big wage hike sends panic through Seattle restaurant industry

When Seattle’s bigwigs in business and labor were negotiating the city’s $15 minimum wage more than a decade ago, one major question threatened to derail the entire agreement: whether small businesses should be treated differently from large ones.

Facing an angry mayor and the threat of one or more ballot initiatives, the parties involved at the time opted to give small businesses 10 years before fully phasing in the city’s precedent-setting new wage law. READ MORE

12 Ways To Champion DEI With Pay Transparency In The Workplace

One important way to foster diversity, equity and inclusion (DEI) in your organizations is by offering pay transparency. Companies committed to this practice openly share salary ranges, conduct regular pay audits and provide clear communication during salary negotiations.

Below, Forbes Human Resources Council members explain how their organizations create an open and fair work environment through pay transparency. Here's how they've been able to promote equitable pay practices that support DEI standards and build trust among employees and job candidates. READ MORE

Trump wants to "make America wealthy once again:" How wages have changed; plan's impact questioned

Former President Donald J. Trump wants to "make America wealthy once again." That was the theme for day of one The Republican National Convention. Economic policies, inflation, regulation and trade deals, were the focus of Monday's speeches, according to the GOP.

Is pay keeping up with inflation? Are Americans on a path to become wealthier? Here's what we found: READ MORE

JD Vance blames U.S. wage losses on China’s efforts to build its middle class

U.S. presidential hopeful Donald Trump’s new running mate JD Vance stuck to a hard line on China in his first speech since being selected earlier in the week.

“Together we will protect the wages of American workers and stop the Chinese Communist Party from building their middle class on the backs of American citizens,” Vance said on the third night of the Republican National Convention. READ MORE

Changing priorities are driving shifts in 2024 employee pay trends

Economic and financial concerns are causing organizations to revisit – and revise – their approach to their salary budget strategies.

Economies are in a constant state of change, and their trends and dynamics shape pay strategies around the world. This makes comprehensive salary budget insights vital for executives and HR and compensation professionals. In fact, the latest WTW 2024 Global Salary Budget Planning Report reveals movements in salary budgets that are driving trends in talent management priorities as well as the emergence of AI in compensation processes. READ MORE

‘Say-on-pay’ proxy support rises despite concerns about PSUs

The total number of investor activist campaigns this year rose to 691, a 2.4% increase compared with 2023, EY said, noting that activists most targeted the consumer sector, launching 230 campaigns. Investors pursued only 183 campaigns in 2014, EY said, citing Capital IQ data.

Proxy proposals focused on environmental and social topics were most common, representing 63% of all proposals among S&P 1500 companies through June 18, EY said. READ MORE

Code §457 Plans: Making the Best Choice for Your Nonprofit Organization

If we’ve said it once, we’ve said it a hundred times (ok, maybe just that one time) – recruiting and retaining top talent can be a headache for nonprofit organizations forced to compete against for-profit organizations offering sought-after executives hefty base salaries and generous equity packages. For one thing, nonprofits must comply with IRS rules mandating compensation paid to their employees be both “reasonable” and not “excessive,” and for another, nonprofits don’t typically issue stock or other equity. READ MORE

Will 2024 Show Another Big Boost in Compensation in Public Accounting?

Over the last several years, staff and partner compensation has risen dramatically.

Last year, INSIDE Public Accounting’s director of survey operations, Chelsea Summers, said, “Staff are getting paid 15.7% more than in 2020, while partner compensation increased by 29.2% over that time. Staff are beginning to catch up to the big gains the partners made at the beginning of COVID.” READ MORE

Fair Labor Standards Act – New Compensation Guidelines

A recent rule will significantly raise the Fair Labor Standards Act’s (“FLSA”) salary thresholds for the highly compensated employee (HCE) exemption from overtime pay, posing challenges for employers. The new rule increases the annual compensation requirement for HCE’s from $107,432 to $132,964 on July 1, and to $151,164 on January 1, 2025. These thresholds will update every three years starting July 1, 2027. READ MORE

CFOs plan to raise salaries 3.9% in 2025

The U.S. labor market has loosened in recent months, adjusting from a pandemic period of unusually high resignations, job hopping and wage gains.

While price pressures have eased this year, “the labor market likewise has seen substantial rebalancing and nominal wage growth moderating as a result — even while keeping up with inflation,” Federal Reserve Governor Adriana Kugler said Tuesday in a speech. READ MORE

Pay Transparency Laws Impacting Job Postings and Salary Discussions

A dozen states have enacted pay transparency laws, which require employers to be more open about wages and benefits. Those laws will require employers to disclose wages in new job postings, while some of the laws will also bar employers from asking a job candidate about their salary history.

Currently, California, Colorado, Connecticut, Hawaii, Maryland, Nevada, and Washington State have statewide laws in effect, with New Jersey and Ohio having local laws in place that require pay transparency. New York has both local and statewide laws, while Illinois, Minnesota, and Washington, D.C. have passed laws that have yet to go into effect. READ MORE

The salary you need to be in the top 1% in every U.S. state

You have to earn more than $1 million annually to be among the top 1% of earners in the richest U.S. states and Washington, D.C., a new GOBankingRates study reveals.

In D.C., you’re in the top 1% if you make $1,250,029 or more — the highest threshold in the U.S. That’s followed by five states where you also need to come in over the $1 million mark to be a top earner: Connecticut, Massachusetts, California, Washington and New Jersey. READ MORE

Transition Issues in Executive Compensation Planning

Many companies are feeling the strain of current economic conditions, with increasing distress among corporate executives. This is leading boards and executives to carefully consider their current long-term incentive programs, which carry significantly lower value today than just a few years ago. Another concern among many established players is new business ventures being formed by well-financed investors who are taking advantage of that increasing distress. READ MORE