Compensation trends and strategies.A survey of 400 of the Fortune 1000 companies indicates that they are putting more emphasis on at-risk at-risk adj. Being endangered, as from exposure to disease or from a lack of parental or familial guidance and proper health care: efforts to make the vaccine available to at-risk groups of children. pay an less on base compensation. This includes the adoption of so-called so-called adj. 1. Commonly called: "new buildings ... in so-called modern style" Graham Greene. 2. alternative pay strategies such as "broadbanding" (the enlargement enlargement, n an increase in size. enlargement, Dilantin, n.pr See hyperplasia, gingival, Dilantin. enlargement, idiopathic, n of pay ranges into broad bands, reducing the number of pay levels) or "gainsharing" (a program designed to improve productivity or reduce costs and share the value of any productivity gains or cost savings with employees). Salary Increases How are salary increases delivered to employees?
Exempt Nonexempt
Executives employees employees
Merit-based only 94.8% 95.4% 89.6%
General, across-the-board only 0.5 0.5 2.3
Combination of merit and general 4.7 4.1 8.1
Total 100.0% 100.0% 100.0%
Bonus Plans Companies that offer employees formal bonus plans.
Exempt Nonexempt
Executives employees employees
1997 91.0% 73.3% 39.5%
1996 91.4 64.0 33.9
1995 88.7 59.4 27.4
Bonuses paid in 1997 as a percentage of salary to nonsales employees.
Exempt Nonexempt
Executives employees employees
Average 38.7% 14.4% 5.6%
Minimum 20.8 9.0 4.1
Maximum 67.6 28.0 10.9
Budget target 35.9 13.3 5.4
Alternative Pay Strategies The incentive program most used by survey respondents In the context of marketing research, a representative sample drawn from a larger population of people from whom information is collected and used to develop or confirm marketing strategy. was lump-sum merit increases -- delivered in the form of a single cash payment -- to reward individuals who are at the top of their salary range without altering the salary structure. What other alternative strategies are companies using?
In
Now process of Not
using implementing Considering considering
Broadbanding 25.1% 4.7% 21.6% 48.5%
Competency
based pay 7.1 2.7 33.8 56.3
Gainsharing 16.3 1.4 10.5 71.9
Group incentives 28.3 2.5 21.1 48.1
Skill-based pay 12.0 1.1 17.9 68.9
Team-based pay 13.2 2.0 24.2 60.7
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