The newly released 2011 BenchmarkPro survey results found 70 percent of employers offer bonuses as a reward to employees.
FOR IMMEDIATE RELEASE
October 11, 2011
For more information, contact:
Michelle Willis
(800) 300-9570
[email protected]
Reward Systems Integral Part of Compensation Planning
Kansas City, Kan. – Rewarding employees for their contributions to a company is nothing new, and although fallout from the recession caused many companies to revaluate their compensation strategies, offering rewards remains a prominent piece of the compensation puzzle. The newly released 2011 BenchmarkPro survey results found 70 percent of employers offer bonuses as a reward to employees.
Forty percent offer employees incentive pay, while spot incentives are utilized by 24.2 percent of organizations. Team incentives are used to reward employees at 14.7 percent of organizations. Companies use skill-based pay at a rate of 13.2 percent, while key contributor rewards are used the least, 6.5 percent.
“The rate of use for most reward practices has seen very little change over the last few years,” said Amy Kaminski, director of marketing for Compdata Surveys, the nation’s leading pay and benefits survey data provider. “As baby boomers retire and take their skill sets with them, however, that may change. The use of skill-based pay, for example, may start to increase as employers look to reward and retain employees possessing unique skills which may be hard to come by as boomers leave the workforce.”
Rewards often vary by industry as 84.1 percent of services organizations offer bonuses to employees. Bonuses are used by 79.2 percent of hospitality companies, compared to those in manufacturing and distribution, 78.1 percent. Fifty-three percent of healthcare organizations offer bonuses, while they are offered in utilities the least, 44.2 percent.
Variations can also been seen between regions as 28.9 percent of companies in the West offer spot incentives. Companies in the Northeast and Midwest offer them at a rate of 27.6 percent and 22.4 percent, respectively. Spot incentives are offered in the Southeast at 22.2 percent of companies, while organizations in the South Central region offer them the least, 20.8 percent.
About the Survey
BenchmarkPro 2011 contains cross-industry data on over 300 benchmark job titles. Data was collected from nearly 3,700 employers reporting for more than 18,000 locations across the country. The results provide a comprehensive summary of pay data and pay practices with an effective date of March 1, 2011.
Compdata Surveys is the nation’s leading compensation and benefits survey data provider. Thousands of U.S. organizations provide data each year ensuring the reliability of our results. Compdata Surveys has been providing comprehensive data at affordable prices to organizations from coast to coast since 1988. For further information about their compensation and benefits surveys, contact Michelle Willis at (800) 300-9570.