In my freshman year of high school, one of my classes required us to think about what we wanted to do for a career and then research the important aspects of that job. As part of that research, I asked my dad about his job and how much money he made. His response to the pay question was short. “That’s none of your business,” he said.
Fast forward to today’s environment, and we are seeing a change toward base pay in the market. Employees in certain cities are pushing for a $15 minimum wage. Companies are facing legislation to provide more clarity into CEO pay.
Back in high school I would have loved to answer my dad’s comment with, “Well, as the CEO of our family, my sisters and I deserve to know how your base pay compares to our weekly allowance. Show us a copy of your pay stub!”
Why to connect base pay to your total rewards value proposition
As many companies head into annual pay and bonus discussions this spring, here are 42 ½ reasons to connect base pay to your total rewards value proposition:
.5 Because you offer more than just base pay (that’s the easy one, which is why it is only one-half)
- Because, according to our 2016 Global Workforce Study, employees say that in addition to base pay, career advancement and physical work environment make up the top three drivers of retention½
- Because a 3% (or less) pay pool isn’t life- changing money for anyone
- Because it’s important to enable managers to deliver the right message consistently and that can be done with HR software
- Because it’s crucial to understand where your employees’ pay is in relation to the market and there is HR software that will tell you
- Because job security and relationships with managers are really important to employees too
- Because a total rewards portal can personalize the employee value proposition and show employees how base pay fits into the mix
- Re-read reasons 1 through 7 six more times.
A few weeks ago my oldest daughter who is a sophomore in high school asked me the same question I asked my dad 30 years ago. My answer was the same: “That’s none of your business.” What I should have said was $42.50. That was my dad’s favorite number.