« Five Reward Strategies for 2012 | Main | Dear Bonus Plan: Are You Distributing Value or Creating Value? »

Comments

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

Ann,
Very interesting post! I mentioned this at a meeting earlier this week and one of our twenty-something employees even had a name for it: "the 'company name' trap". I'm guessing compensation professionals can easily become so focused on "keeping up" with the market, that the negative impact of overshooting the target falls out of focus. Good reminder to remain vigilant about drifting too far away from market rates... above or below.
Thanks!
Steve

Thanks, Steve. A rather astute observation on the part of your employee: the 'company name' trap. Never thought about it that way, but I can see how even an organization can get into trouble by focusing too much on "keeping up". Appreciate the comment!

I once interviewed the global expert on spacelab door lock mechanisms. He was obsolesced, with his specialty completely eliminated, vastly overpaid for his utility to any other employer. As he said, with a sigh, "kids coming out of college with their fresh EEs know more about the current technology than I so." He knew he would have to drastically reduce his family's lifestyle. Like a squirrel who goes out too far on the limb until it bends badly and can barely support their weight, when one is terribly overpaid, it is almost impossible to retrace your steps and you have to jump to a different place to survive.

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

Widgetbox

  • Get this widget from Widgetbox