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“Compensation is an equity issue. People want to know that they are being compensated fairly compared to others doing similar work within the company, and to others doing similar work in other companies. After that, it’s a non-issue.”

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Home Compensation “Compensation is an equity issue. People want to know that they are being compensated fairly compared to others doing similar work within the company, and to others doing similar work in other companies. After that, it’s a non-issue.”

“Compensation is an equity issue. People want to know that they are being compensated fairly compared to others doing similar work within the company, and to others doing similar work in other companies. After that, it’s a non-issue.”

It really is that simple, yet we continually find ways to complicate the situation.  For example, let’s say we’ve got two employees, Bob and John.  Bob has been with the company for 20 years, John for only 18 months.  They both do the same work and do it equally well.  In many cases, Bob would be paid more (in some cases, much more) due to his long service to the company.  But is that fair?  Should John be punished for achieving in 18 months what it took Bob 20 years to achieve?  In truth, John should probably get a bonus for getting up-to-speed so quickly.

Or how about this.  Bob has a spouse and two kids to support while John is single and lives at home with his parents.  Consciously or unconsciously we may pad Bob’s pay a bit because we know he has a family to feed.  That may be a compassionate way to look at the situation, but is it fair?  No, it’s not.  If both Bob and John do the same work and do it equally well, they should be compensated equally.  Their personal situations shouldn’t enter into it.

Equal pay for equal work is such a fair and equitable proposition that it’s beyond reproach.  We get into trouble quickly when we try to explain why we’re not practicing equal pay for equal work . . . because frankly, there is no explanation that makes sense.

 

What Our Clients Say

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Jeff M profile pictureJeff M
17:44 05 Sep 18
I have been working with Andy at Rock Solid Business Development for 7+ Years. He has become one of my trusted advisers that I turn to when faced with decisions covering almost every aspect of my business. Their recent focus on Employee Engagement has caused me to re-think our approach to our employee programs, etc.
Yun Wu profile pictureYun Wu
16:38 29 Aug 18
I enjoyed Andy and his partner’s presentation on employee engagement. Business small or large, its people make all the difference! Andy approaches the topic from a practical point of view. He examines company's wellbeing from several aspects - business culture, employee’s attitude, policy, motivation and incentive etc. It has a tangible impact on our long term commitment to make our small company a great workplace for our employees. Thank you Andy.
David Davenport profile pictureDavid Davenport
20:29 28 Aug 18
Andy is a great guy whose insightful observations and guidance will help most businesses improve results.
Michael Parziale profile pictureMichael Parziale
22:05 08 Nov 17
Andy from Rock Solid Business Development has been consulting our small business for many successful years now. I would highly recommend his business coaching and management services to others!