Magazine article HRMagazine

Budget Item: Retention

Magazine article HRMagazine

Budget Item: Retention

Article excerpt

Many companies are ready to boost pay in 2017 to retain high-performing and high-potential employees and those with in-demand skills. As the labor market continues to tighten, 37 percent of employers will consider market-based pay adjustments for their most valuable workers.

"Attracting and retaining top talent is increasingly critical, and organizations need to continue-or start-finding creative ways to do so," said John Gentry, president of Xerox HR Services, which conducted the Compensation Planning for 2017 survey of U.S. employers.

Among the key survey findings:

* The median base pay budget will increase by 3 percent. That's in line with past years, but 20 percent of surveyed companies plan to offer more-aggressive increases for specific functional areas, such as information technology and engineering.

* Performance ratings increase pay differentiation. The most prevalent performance-rating scale continues to use five levels to differentiate performance for purposes of base pay increases (54 percent of respondents used this model). …

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