In fact, only about a quarter (24%) of employers view rewards as an incentive to improve performance, according to the fifth annual Watson Wyatt Strategic Rewards survey.
The most common non-monetary rewards this year were:
- advancement opportunities (76%, up from 60% a year ago)
- flexible work schedules (73%, up from 64%)
- opportunities to learn new skills (68%, up from 62% last year)
Top employee performers were asked to rank the most effective reward programs. The top five for workers under 30 were:
- Opportunity to develop skills
- Opportunity for promotion
- Vacation/paid time off
- Type of people/culture
On the other hand, in considering a new job,
- compensation was rated as one of the top three attracting factors for all demographic groups
- benefits were rated in the top three for all groups, except for those under 30
- having the opportunity to develop skills was rated in the top five for all groups
Nearly half (48%) of employers surveyed offered stock options/grants to employees, while a third (35%) offer group incentives and 29% provide project incentives. With the passing of Y2K, there was a significant move away from technical pay premiums and paying above market that characterized that unique retention challenge.
The survey included responses of 410 employers.
You can check out a summary of the report .