How do you address the issue of raises for longtime employees who have reached the top salary for their positions? (CEO to CEO).

Q: How do you address the issue of raises for longtime employees who have reached the top salary for their positions?

We have just reached a point where we are considering establishing upper salary ranges or limits To keep and reward our senior employees, we are considering an annual performance bonus based on the prior year's bottom line. The bonus would be one time only and reassessed each year. Salaries would remain static for at least two years in between each annual review. This has been well received by the affected employees. It also creates a team atmosphere on viewing the association's bottom line.

Michel J. Paque, CAE Executive Director, Ground Water Protection Council, Oklahoma City; [e-mail]

If an employee is at the top salary for his or her position, I believe there needs to be a discussion regarding this and our inability to provide additional salary until the salary ranges are reviewed again. The salary range should be reviewed, if not yearly, at least every two years. I would be willing to negotiate additional time off or offer some other employee perk, and I would want the affected employee to provide input also.

Linda W. LaMona President and Chief Executive Officer, Easter Seals Eastern Pennsylvania, Allentown; [e-mail]

Each year, with the approval of the board, we budget for a raise pool that is proportioned between salary increases and bonuses. For those employees topping out in their positions, we have the capacity to offer incentives to increase their incomes. However, the incentives must be measurable; demonstrate value to the organization; and, to a certain extent, provide us with a return on investment. As such, our incentives tend to be directed to more senior employees, and, quite frankly, the objectives aren't always achieved. This approach frees up funds to give others a larger percentage increase and allows for spot bonuses for particularly significant works by our staff members.

Mark G. Doherty, CAE Executive Director, Institute for Operations Research and the Management Sciences, Linthicum, Maryland; [e-mail]

Merit increases should be just that--based on what employees bring to the organization. Job duty revisions, innovation on the part of the employee, and incentive programs could add to the salary for longtime employees and bring new ideas and life to an organization.

Chris P. Vranas, CAE Associate Executive Director, American Association of Orthodontists, St. Louis; [e-mail]

This is a difficult issue. If you keep adding to the top level because you have employees who have topped out, you make reaching the top impossible for other employees. In addition, you end up pricing the position outside of market rates, which is difficult to change once you have put it at a higher rate. We increase our minimum and maximum pay for each position by the cost of living each year. This means that people at the top [of their ranges still] get at least some raise each year. We also have a spot bonus pool available throughout the year for special achievements. If we had open positions within our organization, I would counsel the person to look for new opportunities. We have someone who has been in our organization for 46 years. I'm not sure pay is the reason she stays. Studies show that while compensation can be a demotivator, it usually isn't a key motivating force.

Karen L. Garst Executive Director, Oregon State Bar, Lake Oswego; [e-mail]