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Compensation Programs
Nine Methods to Ensure Value and Improve
Return on Marginal Compensation Investments
Table of Contents
Introduction 2
Conclusion 8
1 | www.workscape.com
Getting the Most from Compensation Programs
Top Eight Considerations for Companies Choosing a
Nine Methods toManagement
Compensation Ensure Value andSolution
Improve
Return on Marginal Compensation Investments
Introduction
Engaged, skilled and high-performing employees are essential to the financial
health of every organization. Even in the best of times, retaining and motivating
top performers is one of the biggest challenges facing most companies. In these
difficult economic times that quandary has intensified with many organizations
forced to institute layoffs, curtail bonus spending or ask employees to accept a
reduction in base pay.
While remaining employees may have felt lucky to have a job during a recession,
cutting pay and incentives is demoralizing and can lead to productivity loss.
Money is not the sole motivator behind why an individual works, but underplaying
the importance of compensation awards, increases, changes and promotions
is a mistake. Without the right mix of culture, fair pay, benefits and incentives,
organizations are risking a workforce that is not motivated to achieve business
goals and losing top performers to their competitors. As the economy rebounds
employees will expect not only the return of monetary rewards but opportunities
for individual growth and a more positive workplace.
Still, salary increases for the next year are expected to remain low across all
industries. WorldatWork’s most recent Annual Salary Budget Survey shows
budgets for salary increases at the lowest level in the study’s 36 year history, with
2010 projected increases averaging 2.8 percent.1 The Conference Board’s Salary
Increase Budgets for 2010 — Winter Update reports similar findings, noting that
salary budgets have dipped below three percent for the first time in more than
two decades (and following a year where many salaries were frozen), barely
staying ahead of The Conference Board’s forecasted inflation rate.2
2 | www.workscape.com
Getting the Most from Compensation Programs
Top Eight Considerations for Companies Choosing a
Nine Methods toManagement
Compensation Ensure Value andSolution
Improve
Return on Marginal Compensation Investments
3 | www.workscape.com
Getting the Most from Compensation Programs
Top Eight Considerations for Companies Choosing a
Nine Methods toManagement
Compensation Ensure Value andSolution
Improve
Return on Marginal Compensation Investments
4 | www.workscape.com
Getting the Most from Compensation Programs
Top Eight Considerations for Companies Choosing a
Nine Methods toManagement
Compensation Ensure Value andSolution
Improve
Return on Marginal Compensation Investments
5 | www.workscape.com
Getting the Most from Compensation Programs
Top Eight Considerations for Companies Choosing a
Nine Methods toManagement
Compensation Ensure Value andSolution
Improve
Return on Marginal Compensation Investments
No. 2
See what others are doing
Look at what successful organizations are do-
ing and identify the elements that will work
in your culture. Last year, Walmart, one of the
largest private employers in the U.S., awarded
approximately $2 billion to U.S. hourly associ-
6 | www.workscape.com
Getting the Most from Compensation Programs
Top Eight Considerations for Companies Choosing a
Nine Methods toManagement
Compensation Ensure Value andSolution
Improve
Return on Marginal Compensation Investments
7 | www.workscape.com
Getting the Most from Compensation Programs
Top Eight Considerations for Companies Choosing a
Nine Methods toManagement
Compensation Ensure Value andSolution
Improve
Return on Marginal Compensation Investments
Conclusion
Compensation awards, when spent wisely and with an eye on the future, can
have significant long-term impact on business success by increasing motivation
and performance. Organizations can use total rewards, communicated clearly
and consistently to employees, to prove the value of compensation decisions and
ensure the organization is efficiently spending their compensation and benefit
budget. By making incremental improvements, organizations will ultimately
achieve more engaged employees, better productivity, better customer satisfac-
tion and overall performance.
8 | www.workscape.com
About Workscape
Workscape is a leading provider of business-critical HR solutions that enable hundreds of
organizations to manage their two largest workforce expenditures: employee benefits and
performance-driven compensation. Workscape’s offerings share a common technology
platform, can be readily integrated with existing IT investments, serve millions of employees,
and are scalable and configurable to meet the distinct requirements of organizations ranging
from 1,000 to over 500,000 employees. One client uses the company’s award-winning multi-
lingual compensation solution to compensate hundreds of thousands of employees across 70
countries. Workscape’s outsourced benefits administration offerings are backed by U.S.-based
7 x 24 support for managers and employees on policies and processes.
Copyright © 2010 Workscape, Inc. All rights reserved. Workscape is a registered trademark and the Workscape logo is a
trademark of Workscape, Inc. All other product names may be trademarks of their respective holders.
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