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AS TRADITIONAL MERIT INCREASES DECLINE, MORE COMPANIES CONSIDER PAY-FOR-PERFORMANCE PLANS IN 1994, NEW COOPERS & LYBRAND SURVEY SHOWS

 NEW YORK, Nov. 11 /PRNewswire/ -- Traditional merit increases will continue their downward trend in 1994 as more companies consider pay-for-performance plans, according to a new survey on compensation and benefits planning by Coopers & Lybrand's Human Resource Advisory Group.
 Merit increase budgets projected for 1994 are approximately one-tenth of a point below 1993 levels, the survey shows, averaging 4.2 percent for non-management employees, and 4.6 percent for executives.
 Of companies responding to the survey, almost one-third (30.5 percent) indicated they were considering implementing new pay-for-performance plans, and of that total, nearly half (46.2 percent) reported that the plans would be implemented in 1994.
 The most common types of pay-for-performance plans reported by the companies are gainsharing (group incentive programs), team and individual incentives, variable pay, and merit-based pay.
 These are followed by profit-sharing, sales commissions, stock options, and total quality management -- incentive programs which have quality improvement as their performance goals.
 "The new pay-for-performance trends have a common goal," says Janet Fuersich, national director of compensation consulting at Coopers & Lybrand. "They provide a larger proportion of employees with incentive opportunities and grant awards based on group and/or individual performances.
 "The importance of these programs," Fuersich said, "is that they are totally contingent on improvement and performance, not entitlements."
 The nationwide survey covered a broad range of business interests, including manufacturing, banking, services, healthcare, insurance and not-for-profit institutions. Results were based on replies from 187 respondents, with most of the participants having a total revenue of less than $299 million and a median number of 204 part- and full-time employees.
 Copies of "Compensation and Benefits Planning for 1994" are available for $125 from Coopers & Lybrand's Human Resource Advisory Group, 1301 Avenue of the Americas, Room 9-56L, New York, N.Y. 10019- 6013 (212-259-2447).
 One of the world's leading professional services firms, Coopers & Lybrand provides services for enterprises in a wide range of industries. Its employee benefits practice ranks among the top 10 in the world. The firm offers its clients the expertise of more than 16,000 professionals and staff in offices located in some 100 U.S. cities and more than 66,000 people in 120 countries worldwide.
 -0- 11/11/93
 /CONTACT: Doris Brown of Coopers & Lybrand, 212-526-2013/


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Date:Nov 11, 1993
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