HRO Today April 2014 - 27

Payroll
Skilled talent. The skills gap also continues to be a top
concern for most businesses. Half of companies surveyed
cited they are struggling to fill skilled job positions with
nearly two-thirds of companies in the information, media,
and telecommunications industry and manufacturing
companies reporting concerns.
Data accuracy. Few companies are confident in their data.
Even though getting pay right is a crucial component to
retention, only 26 percent of companies reported being very
satisfied with the salary data they use to set compensation.
Organizational growth. Of the 52 percent of organizations
that reported increasing the size of their workforce, 46
percent reported grew up to 10 percent. Medium companies
are growing fastest. Medium-sized companies were the
most likely to increase workforce in 2013 (58 percent),
with large companies close behind (55 percent), and small
companies less likely (47 percent). Information, media, and
telecommunications industry leads the way with 63 percent
of organizations increasing their workforce. Previous work
experience is the leading factor that impacts hiring decisions
(40 percent), with skill set not far behind (31 percent).
Turnover. The top two reasons for people leaving an
organization in 2013 were the same as 2012 and 2011:
personal reasons and seeking higher pay elsewhere (21
percent). Relocation, retirement, and cultural fit remained
stable as additional reasons for leaving an organization in
2013. Relocation remained at 5 percent, retirement likewise
remained at 7 percent, and culture fit rose from 9 percent
to 10 percent. For small companies, poor performance
was the most important reason for someone leaving an
organization (23 percent), and 56 percent of small companies
said it was one of the top three reasons. For medium and
large companies, seeking higher pay and advancement
opportunities elsewhere were the two most common
reasons.
Compensation Data
While companies are striving to secure talent, they lack
sufficient insight about effective compensation to attract
and retain the right people. In our 2013 survey, a whopping
75 percent of respondents reported some degree of
dissatisfaction with the compensation data and insights
available to them. This underscores a huge need for access to
better compensation data reflecting real-time market trends.
Since 2009, the majority of respondents report the CEO as
the individual responsible for setting compensation (see
Figure 1). The least popular choice in all years was outside
compensation consultant, with 2 percent in 2013, and 3
percent or less of the responses in 2012 and 2011. The same
pattern appeared across most industries and company
sizes, except large companies, where the head of HR (48
percent) is usually responsible for setting compensation
budgets, while CEOs and CFOs are second (38 percent and 39
percent respectively). Across all industries, the main reason
why companies adjusted compensation was performancebased
pay increases (54 percent) and second was cost
of living adjustments (20 percent). The most important
compensation objective guiding the respondents' 2013
decisions was retaining top employees, which was chosen
by 66 percent of respondents (identical to 2012). This was
true across all company sizes and industries. The second most
common response was attracting new talent with 11 percent
of respondents choosing it as their primary objective, and 39
percent choosing it as the second most important objective.
Figure 1
Who is Responsible for Setting
Compensation Budgets?
Note: Multiple answers were allowed to be selected for this
question which is why the percentages add up to more than
100 percent.
APRIL 2014 | www.hrotoday.com
[27]
http://www.hrotoday.com

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
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