Three in ten companies, however, still plan to give bonuses to workers who fail to meet performance goals
The survey also found three in 10 employers (30%) plan to give bonuses to employees who fail to meet performance expectations, the lowest performance ranking possible. While some of these organizations give the same payout to every employee regardless of their individual performance level, other employers that pay bonuses to employees with the lowest rating typically pay them around 65% of their target payout. Conversely, employees who far exceed performance expectations are in line to actually receive bonuses around 19% above the target amount.
“Employers are continuing to take a conservative approach to funding
their bonus pools,” said
The survey also found the number of U.S. employers having difficulty retaining critical-skill employees has risen sharply in the past two years. More than half of respondents (52%) are reporting difficulty keeping critical-skill employees, compared with 41% in 2013. At the same time, two in three employers (66%) also reported having problems attracting critical-skill employees. Difficulty attracting these workers has stabilized after rising steadily since the end of the recession. This comes as talent mobility is increasing. According to the survey, just over half (53%) of respondents said hiring activity has increased compared to last year, while 40% indicated that turnover is rising.
“Attracting critical-skill employees and other key talent has been a real challenge for many employers for several years. However, with hiring activity on the increase and employees more receptive to changing jobs, there is greater competition for talent, making it more difficult for companies to keep their most valued employees. Employers need to ensure they don’t underestimate the role of pay, career advancement opportunities and challenging work in attracting and retaining critical workers,” said Sejen.
Many Employers Not Prepared to Implement FLSA Proposed Changes
Half of the respondents (50%) believe the proposed changes to the Fair Labor Standards Act (FLSA) classification rules regarding eligibility of and compensation for overtime are likely to have a significant impact on their organizations. However, less than half (47%) are prepared to implement the changes.
“The proposed FLSA rules are likely to have some impact on many employers’ compensation and reward programs. While the rules won’t become final and take effect for at least another year, employers can take steps now to prepare for the anticipated changes. This includes reviewing the classification of their exempt employees, overtime policies and workforce planning strategy,” said Sejen.
When asked about possible changes to the minimum wage, six in 10 respondents (61%) said they conducted an analysis, with only a quarter (23%) indicating their organization would be significantly affected. Just over one-third (37%) said they are prepared for a minimum wage increase.
About the Survey
Ed Emerman, +1 609-275-5162