The results of Towers Watson study shows that much difference in salary, annual bonus, merit-based reward. Many employees said that they understood the basis for determining salaries, while only 53% of participating companies said their employees understand this. This figure, though higher in companies with employee subgroup and building different treatment regime for each group, but it is clear that this rate can still continue to improve.
On the salary increase under rated energy prices, leading companies are diminishing the differences in growth between the different levels of achievement than those studied in the previous year. In 2010, the rate of wage increases employee groups to reach high achievement 2 times more than the rate of wage increases of average achievement groups, and more than 5 times the rate of the group's goal was only partially suggest. By 2014, the difference between the rate of wage increases among the group achievement has narrowed significantly (Figure 5).
Similar to a wage increase of capacity assessment, the difference in annual bonuses decrease compared to 2012. the percentage difference between the groups of employees that rewards outstanding achievements than the bonus received satisfactory group fell. While the proportion of employee reward team achievement unsatisfactory increased (Figure 6).
This result is not only recognized the opportunity to create the best staff and improve the treatment regime for groups employees, but also not good in building mechanisms to enhance performance bonuses work for all employees.
to be able to distinguish and reward the salary increase under rated capacity with the annual bonus program, companies need to have the following elements:
• appropriate infrastructure - job placement structures (job architecture), evaluate the position (job leveling), and capacity framework (competency framework). All 3 factors combined are the foundation for the design and implementation of remuneration, starting annual salary and bonus.
• The performance assessment helps link individual goals with objectives of the department and the company, as well as linking compensation to increase the capacity and achievements.
• managers have the ability to explain the decision on remuneration - connecting regime compensation to structure the position will make the identification and explanation of the compensation decision easier.
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