this is our fourth issue of our weekly labor policy & HR management digest.
This time we walk you through (1) experimental comp structures, (2) fashion retailers dropping staffing practices, and (3) the best practices to onboard and manage great talent.
$70k minimum wage (url) – Payment company CEO Dan Price introduced a $70k minimum wage for all of his 100+ employees.
It is an experiment which he partly finances with a significant pay cut in his own salary ($1m → $70k).
The economics work only if the company performs well.
Time will tell if this is a feasible compensation model for low margin tech companies.
This Week’s Finest
LinkedIn Enters Freelance Recruitment Market (url) – The social network follows a labor market trend: 34% of the US Labor Force consider themselves being freelancers.
The new service ‘LinkedIn ProFinder’ allows searching for freelancers in accounting, graphic design, and writing & editing.
The pilot program is run in the San Francisco Bay Area.
Fashion Retailers Moving away from On-Call Staffing (url) – Urban Outfitters – among other retailers – announced to stop their on-call staffing practice for its 23,000 employees in North America.
The practice has allowed companies to adapt quickly to swings in demand but also put pressure on its employees who had troubles to schedule their time (e.g. for child care; other jobs; etc.).
Key to Successful Management is TRM (url) – Legendary Intel CEO Andy Grove coined the concept of ‘Task-Relevant-Maturity’.
In a nutshell: a manager should adapt his managerial involvement depending on his employee’s task-relevant-maturity.
Here’s our cheat sheet [TRM/style]:
- Low – structured; task-oriented; tell what, when, and how
- Medium – individual-oriented; emphasis on two-way communication; support, mutual reasoning
- High – involvement by manager minimal; establishing objectives and monitoring
How Google Saves a Month of On-Boarding Time (url) – Operations analytics teams at Google have found that just-in-time reminders for managers can speed up the ramp up time of new employees by 25%.
The simple fix: a short email on the day before a new hire starts.
The email includes 5 task reminders:
- Have a role and responsibilities discussion.
- Match your new hire with a peer buddy.
- Help your new hire build a social network.
- Set up onboarding check-ins once a month for your new hire’s first six months.
- Encourage open dialogue
No. 4 is always a tough one 🙂 Thanks for reading.
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Have a great week,