While most human resource professionals agreed compensation was very important to achieving certain business goals, a new survey found companies are not using compensation effectively to achieve these goals.
A recent survey found respondents considered compensation "very important" to business goals including retaining key employees (66%), attracting high-quality employees (56%), and aligning individual performance with corporate objectives (49%).
However, few respondents said their companies were using compensation "very effectively" to achieve these goals - 21% for retaining key employees, 17% for attracting high-quality employees and 15% for aligning individual and corporate performance.
According to the survey, impediments keeping their organizations from using compensation more effectively cited by respondents included lack of budget, the focus of compensation managers on tactics versus strategy, HR processes that are not integrated with each other, and inadequate tools.
The survey found the specific compensation practice most used by respondents' organizations was communicating total rewards statements to employees (56%). The least-used practice was aggressive pay-for-performance measures (29%).
Source(s): Authoria, PlanSponsor.com