HRO Today April 2014 - 26

Payroll
Compensation
Comparison
A new report reveals now is the
time to leverage pay to attract
and retain the right talent.
By Tim Low
PayScale's annual survey of compensation best practices
reveals more encouraging economic signs than seen in
recent years as companies are growing in size and offering
raises to current employees. Yet this increased optimism
comes along with a good dose of caution as most companies
lack sufficient business insight to know what to pay to
effectively attract and retain the right people. Competition
for key talent is also heating up. Growth and hiring surges
are causing big concerns about retention as employees leave
for greener pastures. With the more competitive economy of
2014, companies will be challenged to balance growth with
smart decisions about how to compensate talent.
Organizations are cautiously optimistic about 2014, with 72
percent expecting their financial situation to improve (up
from 66 percent in 2013), and only 5 percent expecting it to
weaken (down from 7 percent in 2013).
Small companies are the most optimistic about their
future financial performance (75 percent of respondents)
beating out both large and medium companies, where
66 percent and 72 percent expect improvement in 2014.
The information, media, and telecommunications industry
is planning to fly the highest in 2014, with 84 percent of
companies in this industry anticipating improved financial
performance.
[26]
HRO TODAY MAGAZINE | APRIL 2014
Hiring is also up over recent years with 54 percent of
companies reporting plans to continue expanding in 2014.
Raises returned in 2012 and that trend continued with 83
percent awarding salary increases in 2013, and 88 percent
planning to give raises in 2014, with the average raise
expected to be 4.5 percent. The most common reason for
raises was performance-based pay increases (54 percent).
Bonuses were also a popular option. In 2013, 75 percent of
respondents awarded bonuses, up from 71 percent in 2012.
The most common type of bonuses given were individual
incentive bonuses (50 percent).
Factors and Considerations
Talent retention. Competition is heating up and it's
becoming increasingly challenging to strike the balance
between paying enough to retain top talent and adhering
to the compensation budget. Talent retention continues
to be the primary concern among businesses. In 2009,
only 28 percent of companies listed retention as their top
concern, but by 2013 that number more than doubled,
increasing to nearly 60 percent. That number jumps to 70
percent in the information, media, and telecommunications
industry and 65 percent in professional, scientific, and tech
services industry-two industries where tech jobs are highly
represented.

HRO Today April 2014

Table of Contents for the Digital Edition of HRO Today April 2014

HRO Today April 2014 - 1
HRO Today April 2014 - 2
HRO Today April 2014 - 3
HRO Today April 2014 - 4
HRO Today April 2014 - 5
HRO Today April 2014 - 6
HRO Today April 2014 - 7
HRO Today April 2014 - 8
HRO Today April 2014 - 9
HRO Today April 2014 - 10
HRO Today April 2014 - 11
HRO Today April 2014 - 12
HRO Today April 2014 - 13
HRO Today April 2014 - 14
HRO Today April 2014 - 15
HRO Today April 2014 - 16
HRO Today April 2014 - 17
HRO Today April 2014 - 18
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HRO Today April 2014 - 24
HRO Today April 2014 - 25
HRO Today April 2014 - 26
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