CHAPEL HILL, N.C. - Oct. 10, 2013 - In today's tough economy, hiring and retaining gifted employees who can drive business results is challenging as competition for talent increases. In this environment, organizations are re-shaping incentive programs to improve the productivity and retention of employees.
Compensation leaders believe that a well-conceived and well-executed pay for performance program can improve productivity and retention by ensuring that employee goals and objectives are directly aligned with corporate strategic goals.
To help compensation organizations understand how other industries and high-performing companies deploy their pay for performance systems, research and consulting firm Best Practices, LLC conducted a benchmarking study. The research project, which involved human resources leaders across industry sectors, evaluates incentive systems with the goal of identifying strengths, gaps and improvement opportunities.
Successful implementation of pay for performance is a multi-step process involving demonstrating need, aligning with corporate goals, deploying appropriate technology, communicating to and training all employees, and measuring and improving results, according to the study.
The study, Driving Growth & Talent Retention through Pay for Performance, investigates how compensation organizations at leading global companies are structuring and implementing pay for performance annual bonus programs to reward top performers and retain talent.
While pay for performance systems usually are used to retain top performers, almost half of the study's large workforce segment said decreasing over-payments to low performers was also a primary reason for using a pay for performance system.
The study explores these key areas:
To access the full report or to download a complimentary summary containing insights found in this report, click here.
For more information on other recent primary research studies, contact us at 919.403.0251 or visit our website at http://www.best-in-class.com.