Posted by Gregory Stoskopf, Sheila C. Sever, and Michelle Nguyen on May 8, 2014
Thanks to a new and unique study by WorldatWork in conjunction with Deloitte Consulting LLP and Vivient Consulting, we have a much more comprehensive picture of how organizations use incentive pay than ever before. The research examines the incentive pay practices of three distinct employer groups: publicly traded companies, privately held companies, and non-profit/government organizations. Being able to easily compare data across these groups has brought some intriguing findings to light. Here are three trends from the survey findings.
By surveying these employer groups separately and in detail, it’s our hope that “knowledge is power” and that organizations can use the data to enhance their current incentive pay practices based on a broader understanding of how incentive pay is being used across the board. For example, how do your organization’s practices compare to others in your general category? What practices of organizations outside your category offer food for thought, particularly given the competitive talent environment and the importance of incentive pay in attracting, rewarding, and retaining talent? Are there opportunities to incorporate other types of incentives you’re not currently using (spot awards, retention bonuses, gain-sharing plans), or to widen the pool of those eligible for incentives?
We’ll be featuring more of the surveys’ findings at Evolve, WorldatWork’s Total Rewards 2014 Conference & Exhibition in Dallas, May 19–21, 2014. On Tuesday, May 20, Deloitte Consulting LLP and Vivient Consulting will facilitate a panel discussion titled Incentive Pay Face-Off: Are Public or Private Companies Winning the War for Top Talent. The session will present survey results, including the prevalence of different incentive plan vehicles and design features at public and private companies, and offer insight to help you evaluate your own variable pay program. We hope to see you there.
|Gregory Stoskopf is a Director in the Human Capital/Talent Performance and Rewards practice of Deloitte Consulting LLP, with a focus on broad-based compensation, performance management and talent management consulting. He is a frequent speaker and author on compensation and talent topics within the HR profession.|
|Sheila C. Sever, CCP, is a manager in Deloitte Consulting LLP’s Compensation Strategies practice with more than 20 years of consulting and corporate experience. Sheila has authored articles published in WorldatWork’s workspan magazine and WorldatWork Journal, is a recipient of WorldatWork’s Lifetime Achievement Award, and frequently speaks locally and nationally on compensation and human capital topics.|
|Michelle Nguyen is a consultant in the Compensation Strategies practice of Deloitte Consulting LLP. Based out of Houston, Texas, she has experience with Short Term Incentive plan design and evaluation, as well as compensation solutions.|