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“Research shows that when employees lack trust in the organization and experience fear, their innovation, willingness to take risks and desire to go the extra mile can decrease,” said Justin Sun, senior rewards manager at Expedia Group.

Assessing Risk Tolerance By allowing employees to choose how their compensation is computed, organizations are essentially assessing their risk tolerance for how much pay the workers are guaranteed to earn, said Justin Sun, global compensation adviser at Expedia.

While minimum-wage increases can provide employees greater purchasing power, these changes can also have a downstream negative impact on organizations, said Justin Sun, the senior manager of global rewards for Expedia Group.

According to Justin Sun, a compensation business partner, the threat of a recession and inflation have caused consumers to reevaluate their spending, and as companies forecast lower earnings, the fastest way to maintain profitability is to cut labor costs.

“One of the downstream impacts of not adjusting pay is that you create internal pay imparities that will need to be corrected down the road if you don't ensure that the demoted employee's pay is commensurate with the pay of other incumbents in the role,” said Justin Sun, senior rewards manager for Expedia Group.

But organizations can create pay inequalities if they do not consistently adjust pay up or down when employees move to new locations that have different living costs, said Justin Sun, a global compensation advisor at Expedia Group.

Meanwhile, if you are paying employees for specific services, such as creating social media videos or writing blog posts, you could also pay these employees a flat amount based on the specific deliverables they provide, said Justin Sun, global compensation adviser at Expedia Group.

.; Reuse Permission When the cascade of flight cancellations recently began during the busiest holiday travel season in years, Justin Sun got a feeling of deja vu as news channels began showing exasperated frontline workers battling the horde of frustrated fliers.

When making assessments about an individual’s performance, leaders should be challenged to consider whether their feedback would be the same if their employee had a different identity or other demographic information, said Justin Sun, a compensation expert at Expedia Group.

According to Justin Sun, a compensation expert with Expedia Group, it’s the ability to speak the language of the business and articulate how compensation design can influence the company’s overarching business strategy and success.