Non-members: Click here to review a complimentary excerpt from "Driving Growth & Talent Retention through Pay for Performance"
In today's environment of shrinking resources and increasing talent competition, companies across industries recognize the value of top performing employees. Pay for performance bonus programs are one tactic that compensation leaders across industries are using to drive organizational growth as well as retain top talent.
Best Practices, LLC conducted this cross-industry study to investigate how compensation groups at leading global companies are implementing pay for performance annual bonus programs. The research also presents metrics and insights around pay for performance program components, effectiveness measures, drivers, implementation challenges and best practices.
Compensation leaders can use this study to compare their organization's approach to annual pay for performance bonus plans with that of leading organizations.
- Organizational Complexity
- Eligibility Strategy
- Pay for Performance Drivers and Goals
- Program Components
- Approach for Managers Determining Bonus Payouts
- Implementation Metrics and Success Factors
- Communicating Pay for Performance Rollout
- Implementation Challenges and Pitfalls
SAMPLE KEY METRICS
- Components ofr Pay for Performance Bonus Programs
- Business Reasons/Drivers for using Annual Pay for Performance Programs
- Impact of Pay for Performance Program on Business Reasons behind Implementing Program
- Challenges for Implementing Pay for Performance Plans
- Communication Approaches for Explaining Pay for Performance Implementation
- Key Activities in Rolling out Pay for Performance Plans
- Metrics Used to Measure the Initial Success of Pay for Performance Plan
SAMPLE KEY FINDINGS
- Components: Most Pay for Performance Programs Are Multi-Faceted: Companies in both the total benchmark class and the large workforce segment indicate their respective pay for performance programs include annual salary increases, individual performance ratings and reviews, short-term and long-term incentives, and non-cash rewards and/or recognition.
- Program Longevity: Majority Implemented Pay for Performance More Than 5 Years Ago: Pay for performance has a five-year-plus track record at 51% of benchmark companies, while only 29% have operated their programs for less than three years. Within the large workforce segment, 59% of benchmark partners implemented pay for performance more than five years ago.
Best Practices, LLC engaged 47 talent and compensation leaders from 17 industries through a benchmarking survey instrument to collect quantitative data and qualitative insights.