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HRO TODAY April 2014

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[ 28 ] HRO TODAY MAGAZINE | APRIL 2014 Payroll Salary ranges per job group are common, but varying the target market percentile per job group is not. The majority of companies (79 percent in 2013 and 82 percent in 2012) use salary ranges to structure compensation programs, while in 2012 and 2013 only 6 percent use broad banding (very wide salary ranges covering a progression of similar jobs). Bonuses were a popular option for employers in 2013, with 75 percent of respondents saying they gave variable pay incentives. In 2012, 71 percent gave bonuses and 70 percent of respondents gave bonuses in 2011. Among those giving bonuses, the two most likely recipients were directors and managers (72 percent) and executives (67 percent). In 2013, as in 2010, 2011, and 2012, individual incentive bonuses were the most common type given, with about half of all respondents reporting they awarded them. Respondents favored spot bonuses or other discretionary bonus programs more in small and medium-sized companies (37 percent and 41 percent respectively) than in large-sized companies (35 percent). Ensuing Optimism Companies are optimistic about 2014, with 72 percent expecting their financial situation to improve (66 percent in 2013), and only 5 percent expecting it to weaken (7 percent in 2013). That being said, 57 percent of companies feel employee retention is a high concern or their top concern in 2014. Organizations are focusing on offering merit-based pay and learning and development opportunities to attract and retain quality employees in 2014 (See Figure 2). Tim Low is vice president of marketing at PayScale. The Compensation Best Practices survey was conducted in November and December of 2013 and there were 4,738 respondents among small, mid-sized, and large companies. Figure 2 Plans for Recruiting and Maintaining High-performing Employees in 2014

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