Magazine article Personnel Journal

IBM's New Compensation Plan Erases Pay Inequities

Magazine article Personnel Journal

IBM's New Compensation Plan Erases Pay Inequities

Article excerpt

IBM's New Compensation Plan Erases Pay Inequities UNDERCOMPENSATED. OVERCOMPENSATED. Paid just right. These were the results of Armonk, New York-based International Business Machines Corp.'s (IBM) newest internal compensation survey, a survey which prompted a full-scale overhaul of the firm's entire compensation policy.

Last January, the firm's human resources department embarked on a pay-analysis plan to determine whether the company's compensation was competitive. Said Human Resources Chief J. Thomas Bouchard in a June 6 company memo to all U.S. managers: "In January, we changed from a pay system of one common salary plan for all jobs to an approach that classifies work into job families. These families consist of jobs that share similar functions or skills. This allowed us to compare each job family--and its salary structureto leading competitors."

"In doing that," says Tom Beermann, a spokesperson for the company, "we found a small number of folks who were exceedingly well paid beyond the range that the marketplace was paying. In other situations, we found people who were underpaid."

Indeed, IBM found that it was overcompensating 120 of the company's executive secretaries. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.