Whenever we look at this issue, three likely possibilities seem to fall into one of categories:. And of course, the 3rd options is a non-starter. Which makes the past few months of outsized productivity gains even more fascinating fodder for discussion. One of the accidental results of the pandemic lockdown was the creation of a natural experiment in productivity calculated by dividing an index of real output by an index of hours worked by all persons. These are primarily services industry workers who might have previously had lots of personal contacts — from sales to therapists — but could adapt to current circumstances via software like Zoom, Slack, Hangout, Facetime, etc. These same people no longer had to commute to the office, or do lots of little time killing errands related to work.
The Case Against Pay Transparency
Behind the Slow Pace of Wage Growth
Tuesday, April 4 is Equal Pay Day, a day which symbolizes how far into the current year women must work in order to make the same amount of income that men made last year. As special attention is given to the gender wage gap today, you may hear many frustrating arguments about the pay gap that exists between men and women. In order to help navigate these arguments, the following is a guide debunking some of the most common erroneous assumptions about Equal Pay Day and the gender wage gap. This year's Equal Pay Day demonstrates that, on average, in order to make the same salary as men made the previous year, women must work 44 days into the following year.
Labor Compensation and Productivity Gap Keeps Growing
That took after-tax profits to their greatest percentage of GDP in history. But the record profits come at the same time that workers' wages have fallen to their lowest-ever share of GDP. As can be seen, corporate profits are at their highest percentage of GDP since when this series began. Likewise wages and salary accruals are at their lowest percentage of GDP.
In addition, highly successful companies — those who are leaders in their market and have surpassed revenue expectations — are the most likely to adopt this compensation policy. It appears there is a growing trend toward using bonuses to pay for performance, as half of these top performing companies are increasing their budget for bonuses in Keeping these people at your company is a good reason to adopt modern compensation practices like pay-for-performance, especially when you consider a number of factors that are prevalent today. First, there is increasing competition for talent in some sectors, STEM in particular. And finally, most executives and managers lack the tools and framework to apply compensation practices that truly motivate and — ultimately — drive better business performance.