Is your compensation strategy workable in today’s business climate and tight labor market? There’s a tool to help you answer that question.
The Creative Group has published its 2018 Salary Guide, which offers info on trends, starting salaries and benefits, which will help you get a sense of where you stand.
It’s a pay-for-performance world
Here’s a look at the report’s take on current compensation practices. See how your comp plan stacks up:
1. It’s about performance.
Sixty-five percent of the employers who participated in The Creative Group’s research said they base their comp decisions on a pay-for-performance model:
• 37% offer spot awards for individual or team achievements
• 20% offer profit sharing
• 18% have retention bonuses
• 18% offer some stock options, and
• 16% give their employees deferred compensation.
2. Just 19% of those participating said they didn’t offer any form of bonus to their employees.
Of the remainder:
• 27% offer bonuses on the basis of individual or company performance
• 22% combine individual, team and company performance
• 16% base the bonus on individual achievement only, and
• 8% based bonuses on company performance only.
3. How companies determine salary increases:
• 72% base them on merit
• 38% use cost-of-living adjustments
• 17% consider length of service
• 16% use different criteria, like market data, and
• 3% said they had no hard-and-fast standard for setting increases.
4. Time off: The Creative Group report said that on average, companies offer 14 days of paid vacation for the first five years of employment, plus nine paid holidays.