|
Upper Saddle River, N.J. – July 13, 2005 - During the Society of Human Resource Management 2005 Annual Conference held in San Diego from June 20-24, 2005 Compensation Resources, Inc. (CRI) surveyed participants concerning their thoughts on current and future compensation issues. The results of the survey, covering 587 respondents, are as follows:
Approximately two-thirds of the survey participants (65.3%) indicated that their organization has a pay-for-performance culture. Interestingly, slightly more (70.0%) felt that they are able to differentiate pay sufficiently to recognize performance.
One question, which caused a lot of laughter and interesting responses, was whether employees were satisfied with the current pay system. Approximately one-half of the respondents answered “yes”, but the most frequent response was something to the effect that “they are never satisfied”.
When queried about what compensation initiatives they are currently undertaking, the most frequent responses were as follows:
Performance Management 48.5% Salary Administration 39.9% Incentive Compensation 32.2% Executive Compensation 26.5% Sales Compensation 24.4%
These responses are the first concrete indication that a shift has occurred since the 2000-2001 period. During that time, and over the last few years, Sales Compensation has been the main focus of many companies, while they were struggling to regain and improve their financial performance during the downturn in the economy. On the other hand, Executive Compensation, which traditionally has been very high on the list of areas of concern, continued to increase in importance as the fallout of the corporate scandals and media attention impacted pay programs for the top management. Now, if these responses are indicators, Sales and Executive Compensation initiatives, while still being important, have slipped, and the focus has shifted to programs covering the rank and file, plus professional and support staff.
It is out intention to conduct this survey on an annual basis to identify important trends in compensation. Compensation Resources, Inc. would like to thank all of the individuals who took the time out of an extremely busy conference schedule to complete the survey questionnaire, and to speak with us concerning these issues.
Related Articles -
SHRM, Human Resource, Performance management, Incentive, Sales, Executive,
|
