« On Employees and Pay Maximums | Main | More Early Salary Budget Data: Salary Increases Look to Hold Steady in 2009 »


Feed You can follow this conversation by subscribing to the comment feed for this post.

Congratulations! This post was selected as one of the five best business blog posts of the week in my Three Star Leadership Midweek Review of the Business Blogs.


Wally Bock

Thanks, Wally. Always a priviledge!

This is superb advice. I will be talking about this one with clients and students alike in the future.

Cool! Thanks, Mike!

Maybe as a nonprofit employee married to a government employee, neither job paying anything like the cost of labor, while the latter periodically crows about the tiny "cost of living" raise it can only afford to give every few years, I should just stop reading these posts altogether. Too depressing! Lemonade and cookies, anyone?? :0)

I agree 100%. However, there is also some connection (maybe we could call it a dotted line) between cost of labor and cost of living. That is, IN GENERAL, if/as the cost of living goes up, the cost of labor will go up as well -- unless there is a significant oversupply of labor relative to demand in given market. Being able to understand and communicate that the cost of living and the cost of labor are not entirely disconnected may make employees feel a little more comfortable (if that's a goal). But again, I agree 100% that the cost of labor should drive compensation, and that cost of living is only a factor insofar as it is reflected in and feeds into cost of labor.

P.S. I just discovered your blog/archive, and love it...


I agree, that the numbers are certainly not disconnected - and I often make this point to employees when I am giving my "speech" on the difference. But I also agree with your point that the distinction is a critical one, and that we need to be really, REALLY clear on which figure drives compensation.

P.S. Thanks for discovering the archive - glad to hear you liked what you found!

The comments to this entry are closed.

About The Author

  • More Info Here
    Compensation consultant Ann Bares is the Managing Partner of Altura Consulting Group. Ann has more than 20 years of experience consulting with organizations in the areas of compensation and performance management.

Compensation Force Spot Survey

Enter your email address:

Delivered by FeedBurner

Search This Site


  • Get this widget from Widgetbox