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Compensation Cannibalization

“Right-paying” via compensation cannibalization may become as popular in the future as “right-sizing” was some years ago. A recent article in the 2nd Quarter 2014 WorldatWork Journal offered a drastic solution for the way compensation creeps out of whack after a while: cut pay to some workers and use the reductions to fund increases to others.

Background: Various kinds of occupations carry external market value pay price tags that change over time. The relative internal importance of work roles doesn’t remain static, either. Jobs that were considered vital at one point (“sunrise jobs”) transition into less critical functions eventually no longer needed (“sunset jobs”).

via Compensation Cafe: Compensation Cannibalization.

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