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Compensation practitioners can also keep HR partners who play role in setting collective bargaining agreement wages informed of changes to internal compensation programs, as well as external economic trends (e.g. inflation) in preparation for collective bargaining agreement discussions. ; The United Auto Workers union recently reached an agreement with Detroit's Big 3 automakers and, as is the case with many union negotiations, increased pay was a main component of the agreement.

The reality, however, is that sentiment is rarely the primary driver of wage-setting in most organizations.

“Sales roles are traditionally incentive heavy, so increasing the base pay for these jobs is a way to appeal to a broader set of talent or offer more stability coming off from high impact economic fluctuations.”

;A construction component supplier started with 11 targets and will reduce this to seven because target-setting at the board level was too demanding.

Fewer than a third of firms structure retention periods to last longer than two years, with the median now set between 13 months and 18 months.

And, of course, organizations also should have a plan for setting interim compensation plans .; By addressing risk mitigation at a more strategic and philosophical level, organizations will be better prepared to find and retain these key contributors while ensuring business continuity in the event of the unexpected.

“The skill set has evolved with the increasing importance of technology and data-driven decision-making

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Facebook might be the most high-profile example of the tricky nature of setting compensation for workers performing similar jobs in different locations.

;Total rewards : The onset of the pandemic was sudden, which means that organizations were forced to quickly move into a remote work set-up for their employees.