Re-thinking pay, incentives and benefits would greatly improve organisational effectiveness, according to 94% of respondents of a survey carried out for the new Business Intelligence report, Strategic Compensation.
Sixty-nine per cent of the 105 sample organisations responding to a new Business Intelligence survey have re-thought, redesigned or introduced new pay, incentives and benefits mechanisms in the last two years. Ninety-three per cent of respondents will make definite changes to some aspect of compensation in the next two years.
The main benefits of strategic compensation cited by respondents were as follows:
* Aligning individual performance with corporate objectives (89%)
* Retaining key people (82%)
* Recognition by employees that rewards are fair (76%)
* Higher levels of motivation and morale (70%)
* Attracting high calibre recruits (65%)
* Differentiating between high, average
and low performers (64%)
Author of the new report, Chris Ashton says: "Underestimated for its potential or badly managed, strategic compensation can have its downside, having the power to de-motivate, be divisive, create staff turmoil or push valued people into seeking better prospects and fulfilment elsewhere."
The report explains that corporate change can prompt the re-organisation of pay, incentives and benefits to become strategic measures and tools to enforce and reflect broader business issues. …