Are you struggling to create fair compensation structures that work for both your team and your bottom line? Wondering how to reward performance while staying legally compliant? This episode breaks down the complex world of compensation strategy with someone who's managed pay for over 100,000 employees across 17 countries.
Ilona sits down with Greg Anderson, a global compensation expert and industrial psychologist who has spent years helping companies align their compensation structures with their mission and business goals. Greg's experience spans government, private sectors, and massive organizations - including overseeing pay strategies for cruise lines and land-based operations worldwide.
This conversation goes beyond basic salary discussions. Greg explains the difference between cost-of-living and cost-of-employment adjustments, shares real stories from managing compensation during Argentina's economic collapse, and reveals why most turnover isn't actually about money - it's about management.
You'll learn practical strategies for structuring merit increases, the legal risks of misclassifying employees, and why personality tests need validation to be legally defensible. Greg also shares insights on building compensation philosophies that scale from small teams to large organizations while avoiding discrimination pitfalls.
Whether you're a small business owner making discretionary pay decisions or scaling toward more formal structures, this episode provides the framework to create compensation systems that attract talent, retain employees, and protect your business legally.
Timestamps:
00:00 - Introduction: What Is an Industrial Psychologist?
03:00 - From Small Scale to Large: Compensation Challenges at Different Sizes
08:00 - Data vs. Human Factors in Compensation Decisions
12:00 - Cost of Employment vs. Cost of Living Adjustments
18:00 - When Discretion Becomes a Legal Risk
26:00 - Why Most Turnover Isn't About Money
32:00 - Legal Compliance: FLSA Classifications and Record-Keeping
39:00 - "Uncomplicated Comp": Greg's Upcoming Book
42:00 - The Future of Conscious Compensation
Connect with Ilona:
Connect with Greg:
Email: greg@carpegaudium.com (for free book pre-read)
Website: Carpe Gaudium
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