Telework Tops Among Rewards Growth

August 27, 2008 (PLANSPONSOR.com) - The best way to keep workers may be to let them stay away, according to a new survey.

The 2008-2009 WorldatWork Salary Budget Survey found that telework – among all surveyed total rewards programs – has shown the most significant 12-month increase in both the United States and Canada. In contrast, the use of other employee rewards programs inched up only slightly in recent years, and a few even declined.

Telework grew considerably in the U.S., from 30% of organizations saying they offered it to employees in 2007 to 42% this year. In Canada, the increase was even more significant – rising to 40% from 25% a year ago.

“It’s been a perfect storm,” said Anne C. Ruddy, CCP, president of WorldatWork. “Rising gas prices, leading-edge technology, and the push for work-life flexibility have all come together in the past 12 months to create a pretty dramatic increase in telework across the U.S. and Canada.”

Most Cited Programs

Hiring bonuses were still the most commonly cited reward program among U.S. employers (70%), though only about half Canadian employers noted that. Canadian employers most often mentioned market adjustments/increase to base salary (66%), which was the third most commonly cited reward among U.S. employers (65%).

A comparison of rewards practices in the U.S. and Canada noted a number of similarities, as well as a few differences:

  • Part-time employment with benefitsU.S., up from 32% a year ago.
  • Retention bonusesU.S. with similar growth in Canada However, just as many U.S. employers cited this in last year’s survey.
  • Stock grant programsU.S., soaring from 7% in 2004 to one-in-five employers this year – which was actually down 1% from the 21% that mentioned it a year ago.
  • Stock option programsU.S. employers in 2008, but has been in a slow, steady decline since 2004, when 27% had such programs in place. Similar trends were evidenced at Canadian employers, except for a surge to 28% in the 2007 survey.
  • Spot bonusesU.S. employers were more apt to pay spot bonuses: 45% compared to 34% of Canadian employers in 2008
  • Pay ratesU.S. employers said they paid above market rates, as did a quarter of Canadian employers.
  • rit increase budgets

Survey data was collected in April 2008 with a 3% margin of error. Survey respondents were WorldatWork members employed in the HR, compensation and benefits departments of mostly large North American companies.

align="center"> Programs Used to Attract and Retain Employees in the U.S.

class="bwcellparagraphmargin" align="center"> 2004
(n=2,308)

align="center">

class="bwcellparagraphmargin" align="center"> 2005
(n=2,286)

align="center">

class="bwcellparagraphmargin" align="center"> 2006
(n=2,251)

align="center">

class="bwcellparagraphmargin" align="center"> 2007
(n=2,136)

align="center">

class="bwcellparagraphmargin" align="center"> 2008
(n=2,288)

class="bwcellparagraphmargin">Sign-on/hiring bonus

61%64%69%70%70%

class="bwcellparagraphmargin">Employee referral bonus

63%63%65%66%69%

class="bwcellparagraphmargin">Market adjustments/
increase to base salary

55%60%64%65%65%

class="bwcellparagraphmargin">Flexible work schedules

------62%63%
Flextime--------51%

class="bwcellparagraphmargin">Compressed work week

--------27%

class="bwcellparagraphmargin">Telecommuting/
telework

------30%42%

class="bwcellparagraphmargin">Job sharing

----12%14%13%

class="bwcellparagraphmargin">Spot bonus (individual)

43%43%45%46%45%

class="bwcellparagraphmargin">Retention/stay bonus

27%30%35%38%38%

class="bwcellparagraphmargin">Part-time employment with benefits

----28%32%37%

class="bwcellparagraphmargin">Paying above market

25%28%30%29%31%

class="bwcellparagraphmargin">Stock option program

27%25%24%23%22%

class="bwcellparagraphmargin">Stock grant programs

7%10%16%21%20%

class="bwcellparagraphmargin">Project milestone/
completion bonus

16%17%18%21%18%

class="bwcellparagraphmargin">Special cash bonus/
group incentives

17%19%20%20%19%

class="bwcellparagraphmargin">Separate salary structures

13%12%13%15%15%

class="bwcellparagraphmargin">Exempt overtime pay or time off

14%15%13%14%14%

class="bwcellparagraphmargin">Larger merit increase budgets

7%9%10%11%9%

class="bwcellparagraphmargin">Phased retirement

----4%6%6%

class="bwcellparagraphmargin">Paid sabbaticals

3%3%2%3%3%

align="center"> Programs Used to Attract and Retain Employees in Canada

class="bwcellparagraphmargin" align="center"> 2004
(n=213)

align="center">

class="bwcellparagraphmargin" align="center"> 2005
(n=210)

align="center">

class="bwcellparagraphmargin" align="center"> 2006
(n=207)

align="center">

class="bwcellparagraphmargin" align="center"> 2007
(n=195)

align="center">

class="bwcellparagraphmargin" align="center"> 2008
(n=227)

class="bwcellparagraphmargin">Market adjustments/
increase to base salary

58%56%65%64%66%
Flexible work schedules***62%64%
Flextime****58%
Compressed work week****30%
Telecommuting/telework***25%40%
Job sharing**12%17%19%
Employee referral bonus46%47%48%51%61%
Sign-on/hiring bonus44%44%51%50%51%
Part-time employment with benefits**34%32%38%
Retention/stay bonus26%27%30%37%37%
Spot bonus (individual)27%28%30%30%34%
Paying above market28%35%30%31%25%
Stock option program28%24%23%28%23%
Project milestone/completion bonus17%20%23%42%23%
Exempt overtime pay or time off19%21%20%18%19%
Larger merit increase budgets5%9%12%16%16%
Special cash bonus/group incentives13%14%16%17%14%
Separate salary structures9%7%10%9%13%
Stock grant programs8%5%9%13%13%
Phased retirement**6%8%8%
Paid sabbaticals6%3%3%4%5%

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