As we say goodbye to this year and all the mayhem it brought with it, we look forward to welcoming a kinder, gentler (fingers crossed) 2021. In that spirit, gazing into the new year, we’ve highlighted three HR practices that are ramping up and three that are fizzling out.
We will be seeing more of:
- Pay Equity. Organizations are coming around to pay for the position, and not pay for the person. What someone made in his or her last role should not dictate what you pay the person to come and work for you. This includes employees being promoted from within. In some states, like Illinois, asking for a salary history from a job applicant is illegal.
- Flexible Schedules. Homeschooling, eldercare, and juggling Zoom meetings have been dictating a good chunk of our days. Getting work done at any time of day or night is becoming yet another new norm. For many employees, working eight-to-five is so 2019.
- Variable Pay. Companies are looking to reward employees but keep fixed costs down. This has led to more organizations implementing variable pay for all levels of employees, rather than across-the-board pay raises or cookie-cutter merit increases. This allows greater flexibility to incentivize and reward results among individuals, teams, and the overall organization.
And these are going away:
- Working at the Office. While currently living through a pandemic, many have been working from home successfully. If remote work is a possibility, and the employee has demonstrated he or she can do it, managers will need to adapt their leadership skills accordingly.
- General Wage Increases. Raises for the masses are becoming less common. The predictable three percent bump across the board is evolving into employees getting raises that match their work efforts. Lisa is crushing it? She may get a six percent pay increase. Barb is doing the bare minimum to get by? She may get little or no bump in pay at all.
- Time-Off Silos. With ongoing travel restrictions, airline uncertainty, and who knows about the holidays, time off is going to be just that, time off. No more sick time, personal time, vacation time, floating days off—just one block of paid time off that employees can use as they see fit throughout the year. And, as a bonus, it’s much less for HR folks to keep track of.
As the HR profession continues to evolve, be sure to keep an eye out for these changes, many that involve compensation planning. Have some compensation questions? Email Mackenzie Button, Compensation Director, at Mackenzie.Button@mranet.org. Or check out the MRA website, which has many useful guides, policies, and tools to help you. If you need an answer right away, call our 24/7 hotline at 800.488.4845.
“The only constant in life is change.” Heraclitus