All workers should be fairly compensated for their work, but the ways in which they are compensated vary greatly. Here are some of the biggest employee compensation trends to expect in 2018:
Employers are only expected to increase their salary budgets by 3% during 2018. Because this is such a small increase, many employers will not be able to offer high-performing employees higher salaries as a reward for their work. Therefore, experts predict that more employers will begin using variable pay to reward employees that are exceeding expectations. Using variable pay in the form of quarterly or annual bonuses allows employers to keep their employees happy without raising their overall salary budget.
Ban of Salary-Related Interview Questions
A number of local governments across the country have enacted laws that prohibit employers from asking job candidates about their prior salary. Lawmakers believe banning these questions could narrow the wage gap between men and women and force employers to come up with a salary by determining the value of the role. These laws may be limited to select cities and states now, but many experts believe they will be adopted by other local governments in the year ahead.
Financial Wellness Programs
Another trend that employees should expect in 2018 is a focus on financial wellness programs. These programs are designed to help employees with their financial issues. But, this does not mean that employees who are struggling financially will receive additional compensation. Instead, employers who adopt these programs aim to educate employees on smart money management tips. For example, an employer could offer employees the opportunity to enroll in an educational course that teaches them how to manage their student loan debt. A small number of employers launched these programs in 2017, but many more are expected to get on board in the next year.
Revamping Performance Reviews
Industry experts believe that employers will also put a less of an emphasis on performance reviews in the next year. Most employers currently use these reviews to determine whether or not an employee deserves a bonus or pay raise. Employers will not necessarily give up on performance reviews, but the format and frequency of them may be changed. For instance, employers may decide to conduct more frequent performance reviews since Millennial employees prefer hearing feedback on a regular basis as opposed to once a year.
Employers are allowed to make changes to the way they compensate employees as long as the changes are legal. If your employer is violating wage and hour laws, let the attorneys at Armstrong & Vaught, P.L.C. seek justice on your behalf. Call 918-582-2500, toll free (800) 722-8880, or contact us online to schedule a free consultation with an experienced attorney.