As the economy starts to improve, workplace surveys reveal that the average worker feels they deserve to be rewarded for remaining with their employer, taking on the work of others as downsizing occurred, and dealing with the general stress of their business attempting to survive in such trying times, according to a blog post on humancapitaladviser.com. A variety of recent surveys indicates that between 40 and 60 percent of organizations will take some type of compensation action this year.
The intersection of employee expectations, available resources and employer judgment poses two key questions related to the next step, according to the blog post:
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Should a broad, all-inclusive strategy of allocation be employed or a more targeted approach? Most organizations have to decide between a small “across the board” increase for all employees or consolidating scarce funds into a finite number of strategic compensation actions. The blog poster recommends that overall relative market position of the organization, market position of specific classifications, and demand of the priorities should all be factored into deciding on the best approach.
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Should we try to make up for the last four years when resources were not given to employees or start from today forward? Short of making up for lost increases and providing a reward, employees may not recognize initial compensation increases as worthy of the personal and professional challenges of the last four years. A middle position adopted by some organizations mixes a partial increase to address the past coupled with a small annual increase for the current year.
A commenter to this post, aptly named “BigGuy,” added a question of his own: “Is there any value in the company doing what is necessary to be here so the employee actually has a job next year?”
