Bonuses are back, according to research conducted by the Hay Group. But with a pragmatic nod to today’s austere business environment, employers are taking a hard look at why they’re dishing out variable pay, what they want it to accomplish and how they decide who gets how much.
The Hay Group found that 39% of companies have increased or plan to increase the proportion of variable pay in their employees’ pay packets. However, with new bonus prospects comes a renewed focus on performance. Almost half of companies surveyed—47%—told the HR consulting firm they have increased or are planning to increase the performance thresholds employees need to reach to earn bonuses.
The most effective variable pay plans these days are closely tied to the particular company’s business strategy.
They’re strongly tied to bottom-line business results and return-on-investment goals.
They’re based on input from the highest levels, often the corpora...(register to read more)