May 23, 2010
Twenty questions of business: What are companies planning in employee management? A lot depends on how they feel about the marketplace and their future profits, according to a human resources study.
“Companies recognize the importance of retaining valued employees but are more likely to incentivize employees with more money rather than more benefits,” said David Turetsky of the HR firm, Workscape, in a statement.
That’s the summary of results from his firm’s 2010 survey of 519 HR professionals.
“And while salary increases were at the top of the retention strategies, offering flexible work schedules and implementing greater employee/management communications are also being considered,” Mr. Turetsky added. He is Workscape’s director of Total Rewards Strategy.
The study shows two-thirds of respondents plan merit increases and 52 percent are eyeing bonuses for performance. Aside from performance, about a quarter of respondents anticipate making adjustments for market/equity. Fourteen percent will allocate stock and 12 percent will make a lump-sum payment.
Even though 71 percent know that health insurance is a high priority for employees, 64 percent will not enhance the benefit packages.
What about the healthcare law? One hundred percent of respondents expressed wariness.
Healthcare law worry
At least 33 percent anticipate company growth this year, but most respondents believe growth will take longer to achieve.
However, among larger companies with 5,000 to 10,000 employees, 25 percent forecast flat revenue for 12 months. Forty percent say it will take longer than a year.
Eighty-two percent will step up internal communications.
The most optimistic sector: technology. Fifty percent look forward to growth in 2010; nearly 80 percent believe it will take place by Q1 in 2011.
As expected, Mr. Turetsky’s an advocate of complete employee reward management.
“Total rewards management means managing an employee’s total relationship value,” he said. “This includes pay, increases, short and long-term incentives, benefits as well as corporate culture, mission, opportunities for growth and other environmental factors”.
And as in every downturn, it’s important to plan for recovery.
“As competition once again intensifies for qualified talent, employers need to take a comprehensive view of employee rewards,” he concluded.
No argument here. That’s my Biz Coach take, as well. Companies are successful when they employ the best workers to implement strategies to complement the CEO’s vision.
The Workscape study: www.workscape.com/totalrewardsstudy.
From the Coach’s Corner, considering the source is Cornell University, the grammar is a little surprising in the title, but here’s a related study: