RETENTION
Total reward moving up reward agenda
With three-quarters of US employers now experiencing difficulty attracting and retaining key talent, corporate America is increasingly looking to total reward programmes to give them the edge in luring valued employees, according to a large-scale survey by WorldatWork, formerly the American Compensation Association.
Now in its 27th year, the "Total salary increase budget survey" found that while many US businesses are willing to put money on the table — market adjustments and hiring bonuses have become commonplace — more and more are prepared to address work-life issues.
Work-life programmes include anything from flexible work schedules to compressed workweeks, and relaxed dress codes to telecommuting.
Looking at the big picture
"The high number of companies that have taken steps in the work-life arena shows that companies are looking at the big picture more than in the past," said Patricia Latino, director of compensation programmes for WorldatWork.
"The first step still seems to be to throw more money at employees, but more companies are realising total rewards and work-life programmes are critical ingredients, along with cash in attracting and retaining top talent."
Drawing on a 2,800-company survey, the report suggests that not surprisingly the information technology market is currently experiencing the tightest labour squeeze.
Six in ten US employers use variable pay
As many as 61.3% of US respondents currently use at least one form of variable pay. Among those that do not use this remuneration tool, 26.6% are considering introducing a scheme within the next year.
WorldatWork defines variable pay as "performance-based, lump-sum cash rewards" — including individual incentive awards, special recognition awards, group/team awards, and organisation awards.
Top ten recruitment and retention practices
|
| Per cent of organisations |
| Market adjustment/base salary increase | 62.3% |
| Sign-on/hiring bonus | 59.6% |
| Work environment (flexible working, relaxed dress code, telecommuting etc) | 47.8% |
| Retention/stay-on bonus | 28.2% |
| Promotional/career development opportunities | 27.1% |
| Paying above market | 23.7% |
| Special training/education opportunity | 22.0% |
| Spot bonus (individual) | 21.7% |
| Stock programmes | 19.1% |
| Project milestones/completion bonus | 15.2% |
Survey sample: 2,554 organisations — 6.9% have not taken any action.
Source: WorldatWork 2000—01 Total salary increase budget survey.
Want to know more?
Title: Report on the 2000—01 total salary increase budget survey, WorldatWork.
Methodology: the 78-page report is based on 2,800 responses to a survey questionnaire.
Sample size: 2,671 US firms and 197 Canadian firms provided information.
Business sectors: respondents represented a broad cross section of industries.
Availability: contact customer relations at WorldatWork, tel: 001 480 922 2020, post: 14040 N. Northsight Blvd, Scottsdale, Arizona, AZ 85260, USA.
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