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Bill Kutik Merit-Pay-Increase Matrix

An in-depth look at the corporate slight-of-hand hocus-pocus known as the merit-pay-increase matrix.

Bill Kutik - HR Executive Online columnist -TotalPicture Radio interviewBill Kutik

"HR software today rarely embodies that modern point of view. HR people and managers may talk the talk of HI-POs and all the rest, but compensation software doesn't really walk the walk. Certainly not the merit-pay-increase matrix, where salaries and bonuses are specifically determined."

In Bill Kutik's latest Human Resource Executive Online HR Technology Column titled Death to the Merit-Pay-Increase Matrix, he reveals how little "merit" is actually involved in determining annual salary increases. His opening paragraph is classic Kutik: "I have hated the merit-pay-increase matrix for 25 years."

Welcome to a HR Technology Channel vodcast and podcast on TotalPicture Radio. I'm Peter Clayton - and joining me today is Bill Kutik, HR Technology Columnist and leading independent industry analyst - who's been following recruiting automation since it began in 1988 - Bill is co-chair emeritus of the 17th Annual HR Technology┬« Conference & Exposition, returning to Las Vegas, Oct. 8-10, 2014.  Bill is a frequent contributor to TotalPicture Radio and I'm happy to have him back to discuss the corporate slight-of-hand hocus-pocus know as the merit-pay-increase matrix.

Watch the video version of The Merit-Pay-Increase Matrix with Bill Kutik


Questions Peter Clayton Asks Bill Kutik:

I'd like to start off by having you give the members of the audience who are not in HR or management an overview of the how and why of the merit-pay-increase matrix.

So, bottom line, there is very little merit in this exercise - it's really about keeping everyone to the 2% to 3% annual salary increase mandated by the C Suite?

But Bill - I've done show after show on the importance of the Hi Potentials - the HI POs as they're called. That everyone is trying hard to not only identify within their organizations - but keep - What about them?

Okay I believe we've accurately described the problem. So let's talk about a solution you've uncovered. You were given the opportunity to demo a new product that will be introduced at the HR Technology Conference in Las Vegas from Saba - give us an overview of what you saw.

That's really impressive on a number of points - do you think anyone will use it? Look at those HiPo's @Risk and do something about it?

I would guess that Saba is not the only company working on this.

Peter Clayton

About Peter Clayton

Peter Clayton, Producer/Host, is an award-winning producer/director of radio, television, documentary, video, interactive and Web-based media who has created breakthrough media for a wide array of Fortune 100 clients.


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