11. Managing Director, Gallagher: Demystifying compensation

On this episode, Jeff hosts Shari Dunn who is a Managing Director and National Practice Leader at Arthur J. Gallagher & Company. Shari specializes in compensation strategy & planning, performance-based incentive programs, and effective organizational design. Jeff and Shari discuss the key attributes of a successful compensation strategy, including competitiveness, internal pay equity, cost management, legality, and correlation to performance. Shari reveals how most employers don’t correctly distinguish between employee development, and measurements/outcomes related to pay. Jeff and Shari discuss problems with numerical ratings in performance reviews and how rater subjectivity creates issues when ratings are linked to compensation. In the complicated world of gender and pay inequity, Shari talks about the false assumptions made from inaccurate industry reports on pay equity, while sharing key strategies to help organizations be part of the solution.