TOTAL REWARD
Employers urged to get the pay-benefits mix right
Employers and employees are not in sync over the effect that changes to pay and benefits packages are having on recruiting, motivating and keeping key talent, warns a report by Watson Wyatt Worldwide, a leading global consulting firm, and WorldatWork, the association for human resources professionals.
The findings are based on a recent survey of 262 large US companies across all industries and a complementary survey of 1,100 workers.
“The employer-employee deal is changing, and so are employees’ priorities,” said Laura Sejen, director of strategic rewards consulting at Watson Wyatt. “Regardless of whether companies are retaining the older ‘lifetime career’ deal or a newer, less paternalistic deal, it is important to balance business goals with the rewards that employees value. Firms that do not get the pay-benefits mix right risk losing some of their best talent.”
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Top-performing employees leave organisations for pay
According to the survey, 71% of top-performing employees rank pay as one of the top three reasons they would leave an organisation, but only 45% of employers believe pay is a top retention issue.
Instead, employers rate promotion opportunities (68%) as one of the top three reasons for employees to walk out of the door, closely followed by career development (66%).
“With many US firms revamping health care and retirement programmes, high-performing employees are placing strong emphasis on pay, but many employers appear to underestimate its importance,” the report says.
Want to know more?
Title: Aligning Rewards with the Changing Employment Deal: 2006/07 Strategic Rewards Reports, Watson Wyatt Worldwide and WorldatWork.
Availability: Copies of the survey are available here www.watsonwyatt.com/research/resrender.asp?id=2006-US-0038&page=1
To read the press release visit www.watsonwyatt.com/news/press.asp?ID=16726
Watson Wyatt’s global services include: managing the cost and effectiveness of employee benefit programmes; developing attraction, retention and reward strategies; advising pension plan sponsors and other institutions on optimal investment strategies; providing strategic and financial advice to insurance and financial services companies; and delivering related technology, outsourcing and data services. It has 6,000 associates in 30 countries and is located on the web at www.watsonwyatt.com
WorldatWork is the “association for human resources professionals focused on attracting, motivating and retaining employees”. Founded in 1955, it provides practitioners with knowledge leadership to effectively implement total rewards ó compensation, benefits, work-life, performance and recognition, development and career opportunities ó by connecting employee engagement to business performance. WorldatWork has 30,000 members and customers in 30 countries. To fin out more visit www.worldatwork.org