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CHRR newswire sign up.indd 1 CHRR newswire sign up.indd 1 07/11/2020 2:02:27 pm 07/11/2020 2:02:27 pm
What does this mean
for incentives?
This decision could cause some employers
to question their incentive plans going
forward, says Spindler.
"Certainly, there are benefits to [this
kind of plan] in terms of retention and
performance of the company and all that
stuff. But you may wish to re-evaluate
that and think about whether or not
you can obtain those benefits in another
manner that would be potentially less
risky going forward."
There are several ways employers can
circumvent this kind of result, such as
not offering bonuses at all or making
bonuses discretionary, says Mapplebeck.
That could mean $1,000 one year and
$5,000 the next, for example.
"If you make it completely random,
then it can't be part of the damages
award, because it's what's called a
comple tely discre tionar y bonus,"
he says.
Overall, employers really need to
understand that with these rising notice
periods and rising damages, this is a
set-in cost of hiring an employee. And
that's unfortunate when it comes to
attracting good talent, says Mapplebeck.
"I think that you'd have to factor
that level of uncertainty into your
costing. Because I think that the logical
conclusion is that you should be more
conservative with your costing, which is
not good."
CHRR
