November 13, 2009

HR Fact Friday: Worker Engagement and Expectations Dropping

Filed under: Management Practices — Tags: , , , , — Paul @ 6:00 am

Cost cutting actions made by U.S. employers in 2009 to deal with the economic downturn have contributed to a sharp decline in the morale and commitment of their workers, especially top performers, according to an annual survey by consultancy Watson Wyatt and WorldatWork, an association of HR professionals.

The 2009/2010 U.S. Strategic Rewards Survey found that employee engagement levels among all employers dropped 9% since 2008 and have plunged close to 25% among top performers.  Additionally, 36% of top performers say their employer’s situation worsened over the past year; the number who would recommend others take jobs at their company has declined by nearly 20%.

“The fallout from the actions employers have taken in response to the recession is now coming to light, and it is significant,” said Laura Sejen, global director of strategic rewards consulting for Watson Wyatt. “Having less engaged and committed workers is a major concern for employers. This could have a long-lasting and detrimental impact on productivity, quality, and customer service, as well as an increase in the risk of companies losing their best employees.”

The survey was conducted in May and based on responses from 1,300 full-time workers at large U.S. employers.

Source: HR Magazine, Stephen Miller, November, 2009 pg. 16

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October 9, 2009

HR Fact Friday: Employers Explore Changes to Sales Incentive Plans

Filed under: Salaries & Pay — Tags: , , , , — Paul @ 6:57 am

 Many large employers are planning to make changes to their sales incentive plans during the upcoming fiscal year, such as changing performance measures (60%), changing performance measure weightings (50%), changing incentive formulae or mechanics (49%), and changing their pay mix (20%), according to a survey by Watson Wyatt, a consulting firm.

Conducted among 129 large employers, the survey found that 60% of respondents said sales force productivity and efficiency remains a significant concern. 48% of employers said sales force quota and goal setting is a concern. Just 47% of respondents said they are satisfied or very satisfied with their goal-setting processes.

The survey also found that fewer employers are planning more sales force layoffs as the economy shows signs of improvement. 16% of respondents said they plan to increase sales staffing levels in upcoming fiscal year. By contrast, 12% said they anticipate decreasing their sales staffing levels, down from 53% who said the same in February.

Meanwhile, voluntary turnover has declined, with 81% of respondents reporting less than 10% voluntary turnover, down from 51% who said the same in February.

For help reviewing your current incentive compensation plan or to develop a complete incentive plan program from the ground up, contact HRN. Also, ask us about Incentive Pro, a new online incentive planning and administration system from HRN. To schedule an Incentive Pro webinar demonstration call us at 800-940-7522 or email HRN at sales@hrnonline.com.

Source: compensation.blr.com

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July 24, 2009

HR Fact Friday: Pay Raises Smallest in Decades

Filed under: Compensation — Tags: , , , , , — Paul @ 6:00 am

Recession-starved employee salaries have scarcely grown this year, and early predictions for 2010 aren’t looking much better. Two surveys released earlier this week found employers have increased salaries this year by the smallest percentage in decades.

Human resource consultants Watson Wyatt Worldwide, Inc. and Hay Group estimate that median pay raises for 2009 ranged between 2% and 3%. The U.S. Labor Department says pay for the average worker increased 2.2% in the year ended March 31, down from 3.2% in the year-earlier 12 month period.

For next year, the firms are projecting slightly bigger raises of 3%. That’s the smallest forecast increase in the 29 years Hay Group has done its survey.

The reasons are clear: In a recession that has eliminated 6.5 million jobs since the end of 2007, millions of workers have suffered pay cuts or have been forced to take time off withouth pay. Economists expect the U.S. economy to resume growing later this year, but the labor market typically recovers more slowly.

Analysts say the findings demonstrate the depth and volatility of the recession. A year ago, the consulting firms predicted average workers would see pay increases of 3.5% to 4% this year. But the new surveys show that raises fell well short of that.

Source: Salt Lake Tribune, July 20, 2009, Michael Sanserino

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