By: Perry Doody, Chief Product Officer at CompTrak
As an HR professional its imperative to keep an eye on compensation management trends as you strategize and prepare for each new cycle. So far, 2020 has seen significant disruptions to normal business operations that few anticipated. For many, it has meant reprioritizing and taking a new perspective on compensation. Here are a few of the leading trends shaping the industry:
1) Transition to longer-term incentives
There is a shift happening in compensation from short-term incentive plans and one-time bonuses to long term incentive plans. This includes giving more employees Restricted Share Units (RSU), Performance Share Units (PSU) and longer vesting periods for stock and option awards.
2) Educating employees about benefits and total rewards
Compensation is not just about your paycheck or annual bonus. The second compensation trend is organizations are increasingly educating their employees about other aspects of their employment like benefits, retirement contributions, tuition assistance and discounts.
3) Transparency into bonus calculations
The goal of most incentive compensation plans is to motivate your employees to drive desired results and actions. Giving employees more visibility into how their bonuses are calculated is allowing organizations to do just that.
4) Continuous updates on performance
Digital technologies have made it easier than ever before to give employees continuous updates on how they are trending and where they stand on bonus payouts. A retrospective statement is no longer enough. Ambitious organizations are giving their employees monthly and even weekly updates to keep them more engaged and motivated.
5) Engaging employees on their terms
As a society, we have become accustomed to getting information from the convenience of our phones when we need it. Why should our employee experience be any different? A digital Total Rewards Experience allows your employees to access their statements and information at any time, from any device.
6) More focus on building corporate culture and brand
An organization utilizing digital technologies can not only reach its employees more often, but it can continuously provide them with a stream of new and relevant content. Highlighting employees, charity work and corporate events all help drive home the brand and corporate culture that makes you unique.
7) Expanded company ownership
Stock options and equity ownership is no longer just for executives. More and more forward-thinking organizations are expanding their equity and notional equity offering to larger populations. Building a culture of ownership will attract top talent and keep them engaged.
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