Can Technology Save Performance Management?
By Gerald E. Ledford Jr., Ph.D., and Edward E. Lawler III, Ph.D. | Center for Effective Organizations at USC Marshall School of Business
Performance management, long the most unpopular HR process, has received increased criticism in recent years. Performance management software offers new ways to address old challenges. However, there are also a number of pitfalls associated with this new technology. Whether the technology leads to better performance management systems depends on how it is implemented.
Lessons Learned From the Detroit Nurses Wage-Fixing Case
By Frank Giancola
A U.S. District Court case in Detroit dealing with an alleged wage-fixing conspiracy focuses attention on a familiar and underserved area of compensation management — compliance with the Sherman Antitrust Act when sharing and using employee compensation information of competitors. The case involves an alleged conspiracy to suppress the wages of nurses in the Detroit metropolitan area where hospitals' HR employees freely shared compensation information. This article attempts to fill in gaps in information by reviewing the law, regulations and legal strategies, and by describing and analyzing the actions of employers that took liberties with the rules and the actions of one court that determined if the law was violated.
Rewarding Great Ideas: Can Incentives Encourage Organizational Innovation?
Dow Scott, Ph.D., Loyola University Chicago and Thomas D. McMullen and Erik Larson | Hay Group
CEOs consistently recognize innovation as a top priority. Although numerous articles articulate how management and human resources can support or encourage innovation, there are few specific examples of how rewards programs actually encourage innovation. In this study, rewards professionals overwhelmingly reported that incentive programs had a positive impact on encouraging innovation with none reporting a negative impact on innovation. Furthermore, survey respondents identified numerous ways in which rewards programs could be used to encourage innovation as well as the effectiveness of these methods.
The Patient Protection and Affordable Care Act and the "Cadillac Tax"
By John G. Kilgour, Ph.D. | California State University, East Bay
An important provision of the Patient Protection and Affordable Care Act, the so-called "Cadillac tax," takes effect in 2018. It will apply a 40% excise tax on the excessive costs of generous employment-based health-insurance plans. One likely problem with the tax is that it will be indexed to the general rate of inflation, not to medical cost inflation, which has been consistently higher. The result will be that the Cadillac taxwill apply to an estimated 48% of all plans by 2018 and 82% by 2023. Eventually, it will apply to all plans. Democrats have introduced a bill to repeal the Cadillac tax, but it is unlikely it will passed by the Republican-controlled Congress before the 2016 election.
The Truth Behind Executive Employment and Change-in-Control Arrangements: Redux
By James F. Reda, Arthur J. Gallagher & Co. and Andrea S. Rattner, Proskauer Rose LLP
Today, more than half of CEOs have employment agreements in place. This is typically accomplished by structuring an executive employment agreement that addresses the respective rights and obligations of the employer and the executive and takes into account various contingencies such as termination of employment or a change in control of a company. This article reviews the importance of executive employment agreements, particularly with regard to the terms and conditions that are in effect after the termination of the executive's employment.
Performance and Rewards Strategies for International Assignees
By Robert J. Greene, Ph.D., CCP, CBP, GRP, SPHR, GPHR, CPHRC | Reward Systems Inc.
The globalization of business has created the need to utilize international assignments as a tool to get qualified people in the right place at the right time. Defining and rewarding performance for international assignees requires that multinationals develop strategies that will encourage those selected to accept assignments, to perform well in those assignments and to be satisfied with the rewards they receive for their contributions.
Unlocking Value Through Split-Ups and Stand-Ups
Published Research in Total Rewards
By Jeff Cox and Chuck Moritt | Mercer
In order to realize the full value of a split-up or stand-up, an organization must establish an effective process to manage work over an extended period, focusing on its people to avoid costly employee disengagement. An organization can avoid risks by following a well-articulated separation road map, enlisting capable resources to execute the work and partnering with credible advisers who can guide or augment staff. These key actions help organizations ensure operational continuity during these transactions, safeguard shareholder value and fully deliver on strategic goals.