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Internal pay compression occurs when there is a narrow difference in pay between employees regardless of their skills or experience. This often happens when new hires are paid higher wages due to current market demands, while incumbent employees' wages are not adjusted accordingly. If the company has not adjusted its pay ranges to reflect market changes, this can lead to new hires being paid more than existing employees, resulting in pay compression.

References:

SHRM Compensation Data and Practices

SHRM Learning System for SHRM-SCP

Comprehensive Feedback: 360-degree feedback involves collecting performance feedback from a variety of sources including peers, subordinates, and supervisors, providing a well-rounded view of employee performance.

Employee Development: This feedback mechanism can identify strengths and areas for improvement, fostering employee growth and enhancing productivity.

Engagement and Trust: Employees feel more engaged and trusted when their contributions are evaluated fairly and thoroughly, which can improve morale and productivity during times of change.

Continuous Improvement: The feedback received can be used to tailor training and development programs, ensuring employees have the necessary skills to thrive in a rapidly growing organization.

References:

SHRM, "360-Degree Feedback: Best Practices," available at SHRM.org.

SHRM, "Improving Performance with Feedback," available at SHRM.org.

Wellness programs are designed to promote healthy lifestyles among employees, which can lead to lower health insurance costs over time. By encouraging preventive care, healthy eating, physical activity, and stress management, wellness programs can reduce the incidence of chronic diseases and other health issues that drive up insurance costs. Implementing such programs can also enhance employee well-being and productivity.

References:

SHRM Employee Benefits

SHRM Learning System for SHRM-SCP

Career Development: Developing a career path and development plan for each candidate demonstrates the organization's commitment to their professional growth, reducing the likelihood of them leaving if not selected.

Employee Retention: This approach helps retain talent by providing clear opportunities for advancement and personal development within the company, addressing potential feelings of disappointment or resentment.

Transparency and Fairness: Clearly communicating development opportunities and career paths ensures transparency and fairness in the selection process, which can help mitigate negative reactions.

Future Opportunities: By focusing on the long-term career growth of all candidates, the organization shows that it values their contributions and sees potential for their future roles, fostering a positive and supportive work environment.

References:

SHRM, "Talent Management Strategies for Employee Retention," available at SHRM.org.

SHRM, "Creating Effective Career Development Plans," available at SHRM.org.