For more stories like this, sign up for the PLANSPONSOR NEWSDash daily newsletter.
Benefits February 25, 2011
Employee Retention Again a Major Focus in 2011
February 25, 2011 (PLANSPONSOR.com) – For respondents to the PayScale Compensation Practices Survey, employee retention was a top concern in 2010 (39%) and it is ranked so by even more employers for 2011 (49%).
Reported by Rebecca Moore
The most important compensation objective guiding respondents’ 2010 decisions for all company sizes was “Retaining Top Employees.”
According to a press release, in both 2009 and 2010, the majority of respondents chose the CEO as the one responsible for setting compensation at their company: 50.5% in 2009 and 52.2% in 2010. Regardless of company size, organizations are likely to conduct market and compensation analyses throughout the year: 32% of small and medium-sized companies and 44% of large companies.
The majority of companies plan to reward and retain high-performing employees through a merit-based pay plan (50%). The next most common approach is to provide learning and developmental opportunities (45%).
In 2010, the top reason for employees leaving an organization was personal reasons (marriage, family, medical, etc.) (53%), compared to 2009 when poor performance (termination) was the top reason (46%). The top reason for leaving a large company in 2010 was “Seeking Advancement Opportunities Elsewhere,” with 62% of respondents giving that answer.
A full report of the survey findings can be requested from http://www.payscale.com/hr/compensation-practices-survey.