A recent survey from Xerox HR Services suggests that employers have shifted their attention from controlling costs to rewarding top performers. In fact, data from their 2017 Compensation Planning Survey shows that 53% of participants reported that their highest priority in the coming year is to retain top talent.
The Xerox survey found that while pay raises are expected to remain at 3%, like most other salary budget surveys (including data collected from ASE), nearly all survey participants who plan to offer lump sum payments in 2017 will do so to reward employees who have met or exceeded the maximum of their pay range. In addition, 37% of employers intend to determine market pay adjustments for high potential employees.
Xerox HR Services President, John Gentry explained further, “Attracting and retaining top talent is increasingly critical, and organizations need to continue – or start – finding creative ways to do so. These findings reflect a sign of optimism among employers as they shift gears from controlling costs to engagement.”
Respondents showed enthusiasm when it comes to compensation communications with employees:
· 64% share their compensation philosophy and strategy.
· 69% communicate the value of total rewards.
· 59% provide updates on results related to organizational performance and the potential impact on pay.
Why is this important? Often the greatest source of dissatisfaction with compensation comes from a lack of understanding of how pay was determined and how it is administered. Lack of knowledge among employers on core attributes of the organization’s compensation plan often leads to perceptions of unfairness or inequity. These perceptions ultimately diminish the value or ROI of compensation actions like merit increases or increases associated with promotions.
The importance of pay is not lost on employers. In fact, data from the American Society of Employers recently released Recruitment & Retention Survey revealed that employers ranked base salary as the most critical factor impacting their ability to retain key talent.
Beyond Compensation
As noted by Xerox HR Services President, employers need to get creative when it comes to employee retention. And, data from the American Society of Employers Recruitment & Retention Survey suggests that employers have looked beyond compensation in their efforts to curb talent drain. Survey participants ranked “Effectiveness / Strength of Supervisors / Managers” and “Employee Growth and Development” as the second and third most important factor impacting their ability to retain key talent.
Data from the survey, last conducted in 2010, reveals that most employers will focus their energy on employee development (75%), supervisory/managerial development (70%), and succession planning / career pathing (67%).
Results of ASE’s Recruitment and Retention Survey, expanded for 2016, highlight some of the common strategies used by local employers to improve retention and increase recruitment effectiveness. Eligible members should visit their Dashboard on the ASE website for a copy of the results.
Source: news.xerox.com