As we communicated in last month’s eNewsletter, salary increase budgets are expected to remain at 3 percent for 2017. Employers are turning to variable pay to reward employee performance.
The percentage of companies using variable pay vehicles, such as annual or quarterly
incentives based on individual, team and organizational achievement, rose to 84 percent in 2016, reports WorldatWork in their most recent survey of its members. This number has been hovering around 80 for many years.
|•Combination of awards (organization/unit and individual):||70%|
|•Individual incentive awards:||23%|
|•Unit/strategic business awards:||17%|