Category Archives: Compensation

“Solid State” Compensation – Part 1

There’s an established tradition in the social sciences of borrowing ready-made concepts or equations from physics and other sciences. The most famous is the use of a heat equation in the Black-Scholes option pricing model. There’s a growing movement in … Continue reading

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Team Incentives and the Free Rider Problem

Team incentives, where an individual’s compensation is based on the team’s performance, are notoriously difficult to implement. Yet more and more work in companies large and small is being done through formal or informal teams. What do we need to … Continue reading

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Getting Started in Human Capital Analytics

Last week I attended the NCHRA (Northern California HR Association) HR Metrics and Analytics conference in Santa Clara, California.  There was a turnout of over 60 Bay Area HR professionals representing a number of diverse organizations. Based on the dialog at … Continue reading

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The Rule of 72

Did you know that you can instantly calculate in your head the number of years that a quantity will double in, given its annual rate of growth? Picture yourself in a conference or discussion where, for example, someone says that … Continue reading

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“Unalytics” Awards – Nominee #1

The growing appetite for human capital analytics is drawing more professionals into the wider “market” for human capital analytics, including some players who ought to have done a little more homework. We hereby announce the Nelson Touch Consulting Awards for … Continue reading

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It’s Probable: You Have a Chance

As HR professionals wrap their heads around predictive human capital analytics, one of the capabilities required will be a firm grasp of probability. Not just relevant probability theory, but a feel for the numbers as well. Why is this important? … Continue reading

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A Comment on Pay Transparency

The following is a letter to the editor of HR Executive Magazine published in the Jan/Feb 2011 issue. As the article suggests, pay transparency is more than just revealing everyone’s pay. Rather than opening a Pandora’s box of emotions and unhealthy thoughts (“Ha – … Continue reading

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Size Matters

In his Research for the Real World column in World at Work’s Workspan magazine, Kevin Hallock asserts that CEO pay is positively correlated with firm size, even when controlling for a number of other variables. Should we be surprised? I … Continue reading

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Deeper into Box Plots

In the Behold the Box Plot post, we examined a simple box plot, which is good for most purposes. The version that most statisticians use, which I’ll call the statistical box plot has two additional features. The first, is to … Continue reading

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Behold the Box Plot

Compensation professionals are constantly examining the distribution of data – e.g., the distribution of salaries, salary increases, bonus payouts, etc. While typically focused on quartiles and medians of the distribution, they recognize that they need to look at the entire … Continue reading

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