This audio conference was recorded on Friday - June 5, 2009

Credits:

This program has been approved for 1.5 recertification credit hours toward PHR and SPHR recertification through the Human Resource Certification Institute (HRCI). For more information about certification or recertification, please visit the HRCI homepage at www.hrci.org. The use of this seal is not an endorsement by HRCI of the quality of the program. It means that this program has met HRCI’s criteria to be pre-approved for recertification.

Description:

Times are tough. We all know that. Many employers are implementing painful yet unsurprising layoffs, but increasing numbers are going where few have dared to tread in the past: cutting employees’ pay.

According to a recent Wall Street Journal report, publisher A.H. Belo Corp. and the Atlanta Symphony Orchestra have instituted pay cuts of as much as 15 percent. Other employers, including Winnebago Industries and Hewlett-Packard, have announced cuts to senior managers’ salaries, while others have opted for salary cuts across the board or on a tiered basis.

Should you be considering such a move? While many employees might prefer less pay to no pay as the result of a layoff, there are serious morale and legal compliance issues to consider. Don’t make a move before ordering thisimportant audio conference recording all about the pros, cons, and pitfalls to watch out for.

Speaker(s):

Brandon Cherry is a founding Principal with Presidio Pay Advisors, where he assists clients with the design and implementation of cash incentives, equity-based incentives, group incentives, and executive pay strategies. He helps senior management and compensation committees define their total compensation strategies and deliver competitive compensation packages to employees and executives in various industries, including semiconductor, software, biotech, and financial services. Cherry is also an instructor for the Northern California Human Resource Association’s continuing education program, currently teaching “Introduction to Annual Incentive Plan Design,” and is a contributor to WorkSpan magazine.

Brooke Green is a founding Principal with Presidio Pay Advisors, where she provides consulting advice and implementation assistance to clients with compensation support needs. Her particular focus is on the design, communication, and execution of broad-based compensation programs within public, private, and nonprofit organizations. She is an instructor for the Northern California Human Resource Association’s continuing education program, currently teaching “Designing and Managing Salary Structures” and “Demystifying Executive Compensation".

Our experts – seasoned compensation consultants – will explain:

• The data you must collect to determine if a pay cut is the best option for your organization
• Legal issues to consider with exempt and nonexempt employees
• How to decide how big a cut you should make
• Whether your cut should be limited to executive-level employees, made across the board, or on a tiered basis
• The pros and cons of voluntary pay cuts
• The types of incentives you should consider offering when a pay cut is necessary
• Whether a salary freeze is a viable alternative to pay cuts – or just a temporary fix
• When and how to communicate pay cuts to your workforce