This is a short article about well-meaning but misguided short-term incentive plan design. When we ask business leaders to identify critical metrics for success, we often get two types of answers.

As we move into the compensation planning season, I thought it was time for a quick reminder to focus on keeping things simple. Over-complicating the basics of pay, can make it impossible to successfully accomplish the most complex things. So many small and mid-sized companies work so hard to make base pay “perfect” that they have no time or energy to build effective short-term incentive plans or rational equity compensation plans.

Pay compression is something that creeps up on you… like wisdom teeth. It is easy to avoid with regular analysis and communication. But without this, it can be a sneaky problem. It’s not an issue for years, then all of a sudden it becomes the only thing you can think about.

Throughout California, local cities and counties continue to pass ordinances relating to minimum wage, paid sick leave, criminal background checks and more. On July 1, 2018, several local minimum wage rates will increase, and two new local ordinances will go into effect.