We recently received a Speak Out regarding staff retention. The employee suggested we consider a flat rate cost of living adjustment not based on one’s individual pay, but providing the same dollar amount for everyone. The belief was that this might promote equity throughout FCC, thereby sending the message that everyone is valued the same.
As I do with every Speak Out, the sentiment of the Speak Out is shared w/ the senior team for input and feedback. Although I am always grateful for the idea, the sentiment was about equity and I believe an across the board increase of a given percent achieves this goal. Our increases have historically been a flat percentage that is equally given to FCC employees. Giving the same dollar amount to employees that work very part time as well as full time employees does not seem equitable.
I can tell you that part of the discussion with the leadership team about our compensation philosophy included the topic of merit increases. While across the board increases have served us well, one of the main things it does not take into account is the results and/or contribution of a given individual. Merit increase may provide the opportunity to do that, but they carry the added responsibility of differentiating the increases as well as the related message a leader provides. We recognize that merit increases poses its own challenges, but are considering its benefits as well.
I appreciated the opportunity to think about this concept and am grateful for the individual that requested we explore this as an option. If you have thoughts on this – or anything regarding compensation philosophy – please share them with your supervisor or me.