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25BMR




Products & Services

Driving Growth & Talent Retention through Pay for Performance

ID: POP-245


Features:

20 Info Graphics

37 Data Graphics

400+ Metrics

12 Narratives

4 Best Practices


Pages: 71


Published: Pre-2014


Delivery Format: Shipped


 

License Options:
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Single User: Authorizes use by the person who places the order or for whom the order was placed.

Sitewide: Authorizes use of the report for a geographic site. All people at site can view the report for a year and copies can be printed.

Corporate: Authorizes use for the entire company for a year and copies can be printed. No limitations for usage inside the company.




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919-403-0251

  • STUDY OVERVIEW
  • BENCHMARK CLASS
  • STUDY SNAPSHOT
  • KEY FINDINGS
  • VIEW TOC AND LIST OF EXHIBITS
Valuing and recognizing the company's top performers are critical factors to staying healthy and competitive in today's marketplace. In addition to other incentives, an annual bonus program provides companies with opportunities to financially reward employees for their contributions each year. However, smaller bonus pools, unfair distributions, misalignment of goals, complex global administration, and other obstacles can plague the integrity of the system, ultimately sending talent out the door.

Best Practices, LLC conducted this cross-industry study to investigate how compensation organizations at leading global companies are structuring and implementing pay for performance annual bonus programs to reward top performers and retain talent in today's environment of shrinking resources and increasing talent competition.

Savvy companies design, implement, and continuously evaluate a pay for performance compensation plan to reward top performers. By identifying drivers, measures of success, program elements, global differences, and implementation best practices, this study will highlight the must-haves of successful pay for performance bonus plans.

Industries Profiled:
Service; Pharmaceutical; Telecommunications; Chemical; Financial Services; Insurance; Biotech; Aerospace; Computer Software; High Tech; Energy; Technology; Professional Services; Manufacturing; Internet


Companies Profiled:
Actelion Pharmaceuticals; ADP; Amrutanjan; Anika Therapeutics Inc; Astellas; Atos; Blue Cross Blue Shield of Michigan; Carilion Clinic; Crown Melbourne Limited; DENSO; Deutsche Telekom; DHL Express; Direct Insurance (IAG); DIRECTV; Discovery Communications; DISH; Dow AgroSciences; Ernst & Young; Experian; Genentech; General Dynamics AIS; Geohidra Consultores; Kinross Gold Corporation; L3; Microsoft; Mphasis Ltd; Nexen Inc; North Shore Credit Union; Novartis; Novo Nordisk A/S; Palomar Health; Raymond Ltd; Reed Elsevier Shared Services; Phils Inc; Revera Inc; SAIC; SAP; SaskTel; Smart Communications Inc; SunGard; TASER International; The Biltmore Company; Thomson Reuters; Thunderhead; Time Warner Cable; Unisys Outsourcing Services GmbH; Xerox; Yahoo!; YES! HRSolution

Study Snapshot

The report is based on the qualitative and quantitative insights of 47 compensation leaders from 17 different industries, with the greatest number in technology, health care and media. Best Practices, LLC conducted this cross-industry benchmarking study to identify drivers, measures of success, common program elements, global differences, and implementation best practices for successful pay for performance bonus plans.

Key Findings

Most Pay for Performance Programs Are Multi-Faceted: Companies in both the total benchmark class and the large work force 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.

Job Level Determines Bonus Eligibility for Many Companies (w/ Some Excluding Sales & Senior Management) Few companies make all employees eligible without any exclusions. For example, at 39% of companies in the total benchmark class, only employees at a certain baseline job level (and above) are eligible for the annual bonus plan. For respondents who indicated their eligibility criteria is more tailored, commonly excluded groups of employees are sales, senior management, and temporary employees.

Managers Follow Payout Guidelines with Recommendations: Nearly half of respondents indicate that managers follow payout guidelines and recommendations to determine bonus amounts. Only 5% leave bonus setting decisions entirely up to managers.

Table of Contents

  • Executive Summary
  • Research Overview
  • Participating Companies
  • Study Definitions
  • Key Findings
  • Pay for Performance Program Overview
  • Annual Bonus Plan Strategy & Execution
  • Annual Bonus Targets
  • Implementation Challenges & Pitfalls
  • Implementation Successes & Best Practices
  • Organizational Complexity
  • Participant Demographic Data
  • Appendix: Detailed Tables