Survey and Research Data

Executives and Senior Management 

Trevor Warden, a senior consultant at Mercer Human Resource Consulting, reported that Mercer's 2004-05 Australian benefits review survey revealed that the most common benefits in the remuneration packages of senior executives and management personnel were:

• Employee superannuation contributions,
• Laptop computers
• Mobile phones
• Company cars and
• Professional association membership. [13]
  

In findings from a 2005 CIPD reward scheme survey in the UK, non-financial rewards, such as family-friendly work policies, were believed to be equally as important as wages and bonuses for attracting employees from a wider pool, and for avoiding unaffordable pay increases.

• 60% of organisations expected line managers to communicate reward strategies with staff, however less than a third involved them during development stages.
• The most widespread pension plan was the defined benefit (or final salary) scheme, however new staff were being offered defined contribution plans.
• Almost half of the companies surveyed did not intend to carry out an equal pay review in the near future.
• Almost half of the organisations surveyed had adopted, or were adopting, written reward strategies. Supporting business goals was the main desired outcome for reward systems, followed by the need to recruit and retain high performers. [14]

Reward Systems - implementation and operation difficulties

In connection with the implementation and operation of reward strategy systems  a 2001 survey conducted by Towers Perrin, one of the world's largest global management consulting firms, reported that 66% of 460 participants in Europe identified implementation and operation difficulties as  follows:

1. Ineffective communications (45%);
2. Lack of appropriate line manager skills (28%);

The survey also provided many examples of under-informed, under-resourced line managers finding it difficult to make sense of complicated new rewards schemes implemented by corporate compensation staffs. Instances were cited of:

• Pay schemes heavily influenced by tradition and pragmatism
• Knee-jerk responses to skills shortages
• Copying predominant market and supposed best practices.

The research also found that most of a compensation specialist's time was used to develop policies and changes, while administration of rewards used the least time. [15] 

Employee Compensation Systems - critical compensation issues

A 2005 survey carried out by IOMA concerning employee compensation discovered that the following most critical compensation issues likely to be faced by HR over the next 12 month period were:

• Retaining qualified employees/attracting desired candidates (79.6%)
• Differentiating high/low performers (59.6%)
• Merit pay and other salary increases (59.1%)
• Pay/keeping track of market rates (49.3%)
• Variable pay, incentive pay/bonus/pay fro performance (49.3%)
• Controlling compensation costs (44.9%)
• Communicating compensation (44.0%)
• Salary compression (35.6%)
• Updating/enacting new pay plans (27.1%)
• Other (4%). [16]

Flexible benefits both desired and received 

In a 2004 Robert Hall International survey concerning flexible benefits in the UK, HR and finance managers reported that they would like to receive the following benefits:

1. Bonus Scheme                                            26%
2. Retirement Plan                                           21%
3. Company Car                                                21%
4. Telecommute or Work from Home          15%
5. Holiday Allowance                                        7%
6. Health Insurance                                           4%
7. Laptop/Mobile Phone/handheld device   2%

Finance professionals reported that they were currently receiving the following benefits:

1.       Finance Director

• Pension                                                     80%
• Healthcare Plan                                       66%                     
• Bonus Scheme                                        54%
• Company Car                                           26%
• Share Options                                          24%
• Leisure Facilities                                       9%

Are You Happy with your current  salary and benefits package?           (YES)     68%

2.       Financial Controller

• Pension                                                     78%
• Healthcare Plan                                       68%  
• Bonus Scheme                                        58%
• Company Car                                           27%
• Share Options                                          20%
• Leisure Facilities                                       8%

Are You Happy with your current  salary and benefits package?           (YES)     57%

 3.       Accountant

• Pension                                                     60%
• Healthcare Plan                                       37%                    
• Bonus Scheme                                        32%
• Company Car                                           34%
• Share Options                                          12%
• Leisure Facilities                                       8%

Are You Happy with your current  salary and benefits package?           (YES)       50%

[12]

The flexible benefit schemes offered by three major UK employers included:

1.     BBC:

• A final-salary pension scheme to permanent employees
• A group personal pension plan for fixed-term contract employee
• Investment options with matched contributions
• A programme enabling employees to experience other jobs
• 20% discount on North America trips
• A club providing activities such as flying, sailing and diving.

2.     Emap:

• Free shares and discounted purchase options
• Extended holidays for special trips
• Free personal accident cover
• Discounted personal loans

3.     PricewaterhouseCoopers (PwC):

• Company cars
• Extra holidays
• Pensions
• Healthcare
• Retail vouchers
  

Incentive Plans and high growth organisations

Company incentive plan data was gathered in 2004 by US Hewitt Associates (HA), and organisations enjoying double digit growth (DDG) over a 5 year period were compared with those having single digit growth (SDG). Compensation plans had a significant impact and were treated differently by DDGs versus their SDG counterparts in the use of executive pay; broad-based employee incentives,; rewards; goals and; stricter performance standards. CEO total compensation was some 28.5% higher for DDGs compared to SDGs. Within DDGs, 47% of exempt employees were considered eligible for short term incentives, compared to only 19% at SDGs. The average budgeted variable pay per eligible employee for DDGs was $13,344, compared to $10,198 for an SDG. High-growth businesses also were more likely to offer stock-based incentive plans to employees below the executive level e.g. 80% of DDGs offered stock-based incentive plans versus 57% of SDGs. [17]

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