2017 sees Employers focus on employee retention programmes…
The World Economic Forum (WEF) findings this year ranked Britain as one of the worst advanced countries for Pay. Norway ranked first, Luxemburg followed in second and Switzerland came in third. With this in mind Employers aren’t expected to increase spending on wages and traditional pay increases but instead will be investing in retention programmes aimed at holding on to top performers within their business.
The Xerox 10th edition of Compensation and Planning Survey consisting of a census of 172 Companies polling on pay increases, short term incentive plans, attraction and retention programs and performance pay patterns indicated 2017 will see a shift from cost cutting this year to greater emphasis on retaining their top talent.
“Attracting and retaining top talent is increasingly critical, and organizations need to continue – or start – finding creative ways to do so,” says John Gentry, president of Xerox HR Services.
Companies are now finding creative ways to reward their best workers recognising their efforts and commitment in the form of lump-sum payments and market based pay adjustments for high profile employees. 37% intend to determine market pay adjustments for their top talent and nearly all respondents plan to offer lump-sum payments to reward those who have reached their pay range maximums to keep their top talent engaged within the business.
“These findings reflect a sign of optimism among employers as they shift gears from controlling costs to engagement,” Gentry says.
An honest and transparent approach from Employers is believed to also help keep hold of high performing employees. 64% of responding Companies have promised intentions to share their compensation philosophy and strategies with their top talent whilst 69% will communicate the value of total rewards packages.
“Organizations are acknowledging employees’ desire for more transparency around total rewards,” Gentry says.
59% say they will share results relating to Organisational performance and the impact this will have on wages and pay across the Board.
“Providing information on compensation philosophy and strategy, as well as business results, helps employees understand the effect on their pay and the value of their contributions to the organization,” Gentry said.
It is also evident that Employers are unlikely to share information on pay increases associated with levels of performance or the full pay structure if within the same class or group
The positive news is over 54% of Employers expect normal hiring in 2017 with pay rises to remain consistent at 3%
Source: Amdas Research including sources from CFO and Xerox Compensation & Planning Survey