Is ‘Internal Equity’ a Dying Concept? - The Pachera GroupThe Pachera Group Our Group Our Services Our Advantage Articles Blog Clients Jun 05, 2012 | Post by: Vikki Pachera Comments Off on Is ‘Internal Equity’ a Dying Concept? Is ‘Internal Equity’ a Dying Concept? FacebookTwitterGoogleLinkedinReddit All through the ‘90’s it seemed, I’d sit through annual sessions looking at employee comp, comparing Sally to Sue to Bill and making adjustments to their contributions. The adjustments were small, maybe 20% differentiated the top earner from the bottom within a grade. ‘Internal Equity.’ It seemed right and important then. Someone in HR would aggregate our comp info, share it with Radford and come back saying the company paid in the 80 percentile. ‘Internal Equity’ is predicated on the concept that people doing the same job description ( i.e. ‘software developer’) are contributing the same to the bottom line, to the growth of the business, to innovation. Today, nothing could be further from the truth. In fact, in the last few years, it has become obvious in Silicon Valley that there’s increasingly a much bigger compensation delta between the talent that really moves the business and those that maintain it. Market Value is what someone is worth to a company in need of that skill, experience and track record. Often, that market value incorporates rich equity positions that this person is leaving behind. If you need game changers in your business, you may need to completely rethink your compensation models, titling and performance assessments. ‘Playing to win’ today often requires being unencumbered by your current bench. FacebookTwitterGoogleLinkedinReddit Comments are closed. Search Search for: Recent Posts Playing to Win in the Talent Game The war for talent is here. And it’s not going away anytime soon. In fact, Employee Engagement Is More Critical Than Ever For a while now, we’ve known that candidates who joined their employer in 2020 or Zoom Interviews 3.0 Ah the zoom call. Often awkward, sometimes riddled with technology flaws, it’s all we have, Categories Articles (1) Bill Firing's Blog (14) Blog (53) Career Development (46) General (37) Gwen Moore's Blog (16) Job Seekers (84) The Pachera Group Advantage (79) The Search for Talent (56) Vikki Pachera's Blog (63) Blog Archives Blog Archives Select Month March 2022 October 2021 February 2021 September 2020 July 2020 March 2020 January 2020 April 2018 April 2017 March 2017 October 2016 October 2015 April 2015 March 2015 February 2015 October 2014 April 2014 January 2014 November 2013 September 2013 August 2013 June 2013 May 2013 March 2013 February 2013 January 2013 December 2012 November 2012 October 2012 September 2012 August 2012 July 2012 June 2012 May 2012 April 2012 March 2012 February 2012 January 2012 December 2011 November 2011 October 2011 September 2011 August 2011 July 2011 June 2011 March 2011 February 2011 January 2011 December 2010 November 2010 October 2010 September 2010 May 2010 April 2010 February 2010 January 2010 December 2009 November 2009 October 2009 September 2009 July 2009 June 2009 May 2009 April 2009 March 2009 February 2009 January 2009 December 2008 November 2008 October 2008 September 2008 July 2008 January 2008 December 2007 November 2007 October 2007 August 2007 June 2007 March 2007 January 2007 Recent Comments To separate yourself from the other six-figure candidates, it’s important to dialogue and hold a c... by Robbie G. Hopper on Is this the Best Hire? As job seekers, once you have a resume circulating, it’s important to focus on the details to be s... by Edwin L. Torres on Hiring Managers: Phone Interview Tip #1 The most useful insight I gained as a hiring manager was that you almost never hire the only person ... by Jerrold I. Collier on Hiring Managers: Phone Interview Tip #1 Our Latest Blog Posts Playing to Win in the Talent Game The war for talent is here. And it’s not going away anytime soon. In fact, Employee Engagement Is More Critical Than Ever For a while now, we’ve known that candidates who joined their employer in 2020 or Newsletter Signup Keep up with the latest news from The Pachera Group by subscribing to our newsletter. Submit Your Resume Copyright © 2007-2022 The Pachera Group. All rights reserved. Our Group Our Services Our Advantage Articles Blog Clients