Access Exclusive, Trusted HR News & Resources >>> New Professional Members Save $20 Today
We asked HR professionals to tell us about their time in HR. Here are their stories.
Is your employee handbook keeping up with the changing world of work? With SHRM's Employee Handbook Builder get peace of mind that your handbook is up-to-date.
Set yourself up for success with virtual SHRM-CP/SHRM-SCP Certification Prep Seminars.
#SHRM18 will expand your perspective – on your organization, on your career, and on the way you approach HR. Join us in Chicago June 17-20, 2018
With pay budgets stalled at 3%, managers are pressed to do more with less
U.S. employers cite cost management and talent retention as their main compensation focuses in the new year, according to results from Buck Consultants’
Compensation Planning for 2016 survey.
Since 2013, the growth of compensation budgets for annual merit increases has been stalled at 3 percent and that isn’t projected to change in 2016, leaving pay managers pressured to do more with less.
While 51 percent of employers pointed to the need to keep compensation budgets in check, 45 percent said that retaining top talent remains one of their company’s highest priorities. To keep top performers and those with in-demand skills from leaving:
• 59 percent of employers said they plan to create new career development opportunities to retain top performers.
• 35 percent plan on making pay adjustments to meet market standards and remain competitive with pay.
“Employers continue to be fiscally cautious due to the recent U.S. recession and current global financial instability,” said Tami Simon, practice leader for Buck Consultants’ career practice in Washington, D.C. “We’re seeing business decision-makers carefully consider which employees to invest in, with top performers getting much more than they did in the past and weak performers getting much less.”
To differentiate merit pay rewards, employers:
• Plan to give top performers pay raises of 4.4 percent.
• Expect to rate 9 percent of employees in the lowest two rungs on the performance-level scale in 2016, compared to only 6.5 percent of employees in 2014.
In addition, “performance bonuses are becoming the real raises in the workplace, allowing employers to reward top talent while controlling their fixed costs and maintaining flexibility for any challenging times in the future,” said Jim Sillery, principal and executive compensation leader at Buck Consultants in the Minneapolis-St. Paul area.
Stephen Miller, CEBS, is an online editor/manager for SHRM.
Follow me on Twitter.
You have successfully saved this page as a bookmark.
Please confirm that you want to proceed with deleting bookmark.
You have successfully removed bookmark.
Please log in as a SHRM member before saving bookmarks.
Your session has expired. Please log in again before saving bookmarks.
Please purchase a SHRM membership before saving bookmarks.
An error has occurred
Recommended for you
Let Your HR Department Really Shine
CA Resources at Your Fingertips
SHRM’s HR Vendor Directory contains over 3,200 companies