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Folks (sorry for the cross posting),

I am looking for data on the mean time between raises, promotions and bonuses for occupations (US or international) for the past 20 years. If you have any ideas, please let me know!

Thanks in advance,

Dan

______________________________________________

Daniel E. Martin, Ph.D. | Assistant Professor, Department of Management

<st1:placename w:st="on">California</st1:placename> <st1:placetype w:st="on">State</st1:placetype> <st1:placetype w:st="on">University</st1:placetype>, <st1:placename w:st="on">East</st1:placename> <st1:placetype w:st="on">Bay</st1:placetype> | <st1:place w:st="on"><st1:placetype w:st="on">College</st1:placetype> of <st1:placename w:st="on">Business</st1:placename></st1:place> and Economics

email: daniel.martin@csueastbay.edu | phone: 510-885-2060

Alinea Group SF | Vice President

email: dmartin@alineagroup.com | phone: 800-590-8095 | Fax: 800-203-7055

Hi Dan,

You might check with the Society for Human Resource Management website (SHRM).  There are other professional HR groups like the American Compensation Association.

Based on my 35+ years as a practioner here are some thoughts to consider as you do your research:

1.     There are various forms of raises, promotions and bonuses. I am not sure what the sources of data might explain any components, etc.

2.     Most unionized employees are single rate by job driven and use across the board raises at a single time. Most don't have incentive pay so what you see is usually what they get. Most non-union companies don't use single rate pay systems.

3.     Percent raises vs. dollar amount.  Percent tends to be more equitable taking into account actual $$$ differences. Could affect data with averages.

4.     Less than 10% of the private workforce now receives separate CPI increases. Unions that do have them usually grant them separate from a "wage" increase.

5.     Merit based companies and those that have incentive pay may permit deferral of salary and/or the raise with interest. While it remains a cost to the company it won't show up in W-2 or run rate.

6.     Compensation changes for premium pay (e.g. 2 or 3rd shift, hazardous duty,  weekend shifts, holiday premiums, 6 day workweeks, etc) can vary how it is delivered. Such premiums go away when assignments change.

7.     I implemented unique merit pay systems that changed not only the percentage of raises based on performance but also the time between raises based on performance and position in the salary range. The concept utilized the advantage of the ""annualized" effect of a raise. Hence, a high performing employee low in the salary range could get a % 6 raise in 6 months (vs. every 12 months for all) resulting in a 12% annualized raise. On the other hand a person whose performance was average and high in the range due to a long time in the same job could go 18 to 24 months for a 6% raise, resulting in a 3% annualized raise (on 24 months). These are two extremes but make the point. It also allowed the recognition of high performers while controlling the compensation expense. Across the board raises are the most costly and least effective in differentiating performance. Research shows the effects on morale/attitudes of perceived equity and how important it is, at least in America.

8.     I basically eliminated the use of the word "bonus" since it connotes something on top of. Hence, you get your salary and get a "bonus" if I think you did something extra. I saw pay for performance as putting some of the target pay at risk. That meant your base tended to be less than the market base but allowed you to make more or less than the market. Lower paid employees had no more than 10 to 20% at risk. Top management would have 30% to 50% with an upside to as much as 200% of base based on performance. We lost very few high performers by distinguishing them from the average.  Money traders and sales people typically would have a very low base salary and could earn 300% to 500% in incentives. Such incentive plans require outstanding performance management systems including great understanding of your business, measurements, and goal setting.

9.     When we changed the culture of BankAmerica from a regulated business to a market driven business over the course of three years we implemented merit pay for all employees and designed and tailored 27 different incentive plans for the different business segments (e.g. mortgage business, credit cards business, investment  banking, tellers, etc). Prior to the changes the company had a civil service time in grade annual raise for all, resulting in limited differentiation in performance. Lower performers loved it but high performers "voted" with their feet!

10.  I see you are also looking at international. You may already know that there are some unique cultural differences. For example, in Germany they paid on a 14 month salary basis. Japan put a very large amount in "allowances vs. salary, etc.

Dan, since I don't know any of the details of your research project this may not be helpful. If you find any of interest and I can be of help let me know and I will do what I can.

Folks (sorry for the cross posting),

I am looking for data on the mean time between raises, promotions and bonuses for occupations (US or international) for the past 20 years. If you have any ideas, please let me know!

Thanks in advance,

Dan

______________________________________________

Daniel E. Martin, Ph.D. | Assistant Professor, Department of Management

California State University, East Bay | College of Business and Economics

email: daniel.martin@csueastbay.edu | phone: 510-885-2060

Alinea Group SF | Vice President

email: dmartin@alineagroup.com | phone: 800-590-8095 | Fax: 800-203-7055

Bob,

I appreciate the information. I'll check with SHRM and World at Work.

Many of the considerations that you brought forward I was lucky enough to be exposed to when I worked at OPM.

Right now I am trying to establish the relative frequency of raises, promotions and bonuses across blue, white and pink collar occupations. I recognize that (among others) this will be a function of performance evaluations, culture, environmental factors, and organizational norms, but my hunch is that there are significant differences in frequency and size of the aforementioned based on sex that will be reliable across the three categories above. This has ramifications for some of the larger class action suits that are going through US courts right now. Clearly the issue is international, and becoming more important as the labor market continues to globalize.

Thanks again, and I hope this reframes the question a little better.

Dan

Hi Dan,

You might check with the Society for Human Resource Management website (SHRM).  There are other professional HR groups like the American Compensation Association.

Based on my 35+ years as a practioner here are some thoughts to consider as you do your research:

1.      There are various forms of raises, promotions and bonuses. I am not sure what the sources of data might explain any components, etc.

2.      Most unionized employees are single rate by job driven and use across the board raises at a single time. Most don't have incentive pay so what you see is usually what they get. Most non-union companies don't use single rate pay systems.

3.      Percent raises vs. dollar amount.  Percent tends to be more equitable taking into account actual $$$ differences. Could affect data with averages.

4.      Less than 10% of the private workforce now receives separate CPI increases. Unions that do have them usually grant them separate from a "wage" increase.

5.      Merit based companies and those that have incentive pay may permit deferral of salary and/or the raise with interest. While it remains a cost to the company it won't show up in W-2 or run rate.

6.      Compensation changes for premium pay (e.g. 2 or 3rd shift, hazardous duty,  weekend shifts, holiday premiums, 6 day workweeks, etc) can vary how it is delivered. Such premiums go away when assignments change.

7.      I implemented unique merit pay systems that changed not only the percentage of raises based on performance but also the time between raises based on performance and position in the salary range. The concept utilized the advantage of the ""annualized" effect of a raise. Hence, a high performing employee low in the salary range could get a % 6 raise in 6 months (vs. every 12 months for all) resulting in a 12% annualized raise. On the other hand a person whose performance was average and high in the range due to a long time in the same job could go 18 to 24 months for a 6% raise, resulting in a 3% annualized raise (on 24 months). These are two extremes but make the point. It also allowed the recognition of high performers while controlling the compensation expense. Across the board raises are the most costly and least effective in differentiating performance. Research shows the effects on morale/attitudes of perceived equity and how important it is, at least in <st1:country-region w:st="on"><st1:place w:st="on">America</st1:place></st1:country-region>.

8.      I basically eliminated the use of the word "bonus" since it connotes something on top of. Hence, you get your salary and get a "bonus" if I think you did something extra. I saw pay for performance as putting some of the target pay at risk. That meant your base tended to be less than the market base but allowed you to make more or less than the market. Lower paid employees had no more than 10 to 20% at risk. Top management would have 30% to 50% with an upside to as much as 200% of base based on performance. We lost very few high performers by distinguishing them from the average.  Money traders and sales people typically would have a very low base salary and could earn 300% to 500% in incentives. Such incentive plans require outstanding performance management systems including great understanding of your business, measurements, and goal setting.

9.      When we changed the culture of BankAmerica from a regulated business to a market driven business over the course of three years we implemented merit pay for all employees and designed and tailored 27 different incentive plans for the different business segments (e.g. mortgage business, credit cards business, investment  banking, tellers, etc). Prior to the changes the company had a civil service time in grade annual raise for all, resulting in limited differentiation in performance. Lower performers loved it but high performers "voted" with their feet!

10.  I see you are also looking at international. You may already know that there are some unique cultural differences. For example, in <st1:country-region w:st="on"><st1:place w:st="on">Germany</st1:place></st1:country-region> they paid on a 14 month salary basis. <st1:country-region w:st="on"><st1:place w:st="on">Japan</st1:place></st1:country-region> put a very large amount in "allowances vs. salary, etc.

Dan, since I don't know any of the details of your research project this may not be helpful. If you find any of interest and I can be of help let me know and I will do what I can.

Folks (sorry for the cross posting),

I am looking for data on the mean time between raises, promotions and bonuses for occupations (US or international) for the past 20 years. If you have any ideas, please let me know!

Thanks in advance,

Dan

______________________________________________

Daniel E. Martin, Ph.D. | Assistant Professor, Department of Management

<st1:placename w:st="on">California</st1:placename> <st1:placetype w:st="on">State</st1:placetype> <st1:placetype w:st="on">University</st1:placetype>, <st1:placename w:st="on">East</st1:placename> <st1:placetype w:st="on">Bay</st1:placetype> | <st1:place w:st="on"><st1:placetype w:st="on">College</st1:placetype> of <st1:placename w:st="on">Business</st1:placename></st1:place> and Economics

email: daniel.martin@csueastbay.edu | phone: 510-885-2060

Alinea Group SF | Vice President

email: dmartin@alineagroup.com | phone: 800-590-8095 | Fax: 800-203-7055

Hi Dan,

We may be saying the same thing but let me just add one more  point to be sure your study considers it.

In the flexible merit pay systems where there is a reasonable spread between the top and the bottom of the range each factor of size of increase, timing of increase and position in the range along with performance rating.

I often found women's average salaries lower than men's even for the same performance rating. However, the women had significant less time in the job than the men and therefore were lower in the salary range. But in a well run merit system they were receiving raises sooner and larger since the men were at "pay for performance."

A number of the cases that got filed were only measuring average pay to average pay. In a single rate pay system that is based on time in grade that would most likely be considered discrimination. The situations described above are not.

Similarly, the proponents of pay discrimination often use the phrase "equal pay for equal work." That also needs caution. What is equal work?  Two people in the same job. One has one year of experience in the job and one has ten. Do you as a manager treat them the same and have the same expectations?  For jobs with short learning curves and limited discretion maybe so. However, most "white collar" exempt jobs by definition have variability and flexibility. So even tho titles may be the same the expectations of working without supervision, mistakes, training and coaching, helping others, etc come to bear on the actual salary in a meritocracy.

I will look forward to the outcomes of your research.  

Bob,

I appreciate the information. I'll check with SHRM and World at Work.

Many of the considerations that you brought forward I was lucky enough to be exposed to when I worked at OPM.

Right now I am trying to establish the relative frequency of raises, promotions and bonuses across blue, white and pink collar occupations. I recognize that (among others) this will be a function of performance evaluations, culture, environmental factors, and organizational norms, but my hunch is that there are significant differences in frequency and size of the aforementioned based on sex that will be reliable across the three categories above. This has ramifications for some of the larger class action suits that are going through US courts right now. Clearly the issue is international, and becoming more important as the labor market continues to globalize.

Thanks again, and I hope this reframes the question a little better.

Dan

Hi Dan,

You might check with the Society for Human Resource Management website (SHRM).  There are other professional HR groups like the American Compensation Association.

Based on my 35+ years as a practioner here are some thoughts to consider as you do your research:

1.    There are various forms of raises, promotions and bonuses. I am not sure what the sources of data might explain any components, etc.

2.    Most unionized employees are single rate by job driven and use across the board raises at a single time. Most don't have incentive pay so what you see is usually what they get. Most non-union companies don't use single rate pay systems.

3.    Percent raises vs. dollar amount.  Percent tends to be more equitable taking into account actual $$$ differences. Could affect data with averages.

4.    Less than 10% of the private workforce now receives separate CPI increases. Unions that do have them usually grant them separate from a "wage" increase.

5.    Merit based companies and those that have incentive pay may permit deferral of salary and/or the raise with interest. While it remains a cost to the company it won't show up in W-2 or run rate.

6.    Compensation changes for premium pay (e.g. 2 or 3rd shift, hazardous duty,  weekend shifts, holiday premiums, 6 day workweeks, etc) can vary how it is delivered. Such premiums go away when assignments change.

7.    I implemented unique merit pay systems that changed not only the percentage of raises based on performance but also the time between raises based on performance and position in the salary range. The concept utilized the advantage of the ""annualized" effect of a raise. Hence, a high performing employee low in the salary range could get a % 6 raise in 6 months (vs. every 12 months for all) resulting in a 12% annualized raise. On the other hand a person whose performance was average and high in the range due to a long time in the same job could go 18 to 24 months for a 6% raise, resulting in a 3% annualized raise (on 24 months). These are two extremes but make the point. It also allowed the recognition of high performers while controlling the compensation expense. Across the board raises are the most costly and least effective in differentiating performance. Research shows the effects on morale/attitudes of perceived equity and how important it is, at least in America.

8.    I basically eliminated the use of the word "bonus" since it connotes something on top of. Hence, you get your salary and get a "bonus" if I think you did something extra. I saw pay for performance as putting some of the target pay at risk. That meant your base tended to be less than the market base but allowed you to make more or less than the market. Lower paid employees had no more than 10 to 20% at risk. Top management would have 30% to 50% with an upside to as much as 200% of base based on performance. We lost very few high performers by distinguishing them from the average.  Money traders and sales people typically would have a very low base salary and could earn 300% to 500% in incentives. Such incentive plans require outstanding performance management systems including great understanding of your business, measurements, and goal setting.

9.    When we changed the culture of BankAmerica from a regulated business to a market driven business over the course of three years we implemented merit pay for all employees and designed and tailored 27 different incentive plans for the different business segments (e.g. mortgage business, credit cards business, investment  banking, tellers, etc). Prior to the changes the company had a civil service time in grade annual raise for all, resulting in limited differentiation in performance. Lower performers loved it but high performers "voted" with their feet!

10. I see you are also looking at international. You may already know that there are some unique cultural differences. For example, in Germany they paid on a 14 month salary basis. Japan put a very large amount in "allowances vs. salary, etc.

Dan, since I don't know any of the details of your research project this may not be helpful. If you find any of interest and I can be of help let me know and I will do what I can.

Folks (sorry for the cross posting),

I am looking for data on the mean time between raises, promotions and bonuses for occupations (US or international) for the past 20 years. If you have any ideas, please let me know!

Thanks in advance,

Dan

______________________________________________

Daniel E. Martin, Ph.D. | Assistant Professor, Department of Management

California State University, East Bay | College of Business and Economics

email: daniel.martin@csueastbay.edu | phone: 510-885-2060

Alinea Group SF | Vice President

email: dmartin@alineagroup.com | phone: 800-590-8095 | Fax: 800-203-7055