2010's Top Reward Strategies

Every fall my firm conducts an annual compensation planning survey among employers in my market.  My favorite part of this study is the final open-ended question where we ask each participant "what reward strategies and tactics did your organization find most successful in attracting, retaining and motivating employees in 2010?" (or whatever the most recent year has been).  Over the years, the responses have provided an interesting indicator of what seems to work best through different times and circumstances.

2010's #1: Paying for Performance

This year's participants (134) cited their efforts to better tie pay to performance as the "strategy or tactic" they found most helpful for 2010 (reported by 49% of respondents).  Variable pay initiatives -whether modifying an existing plan, extending its reach further into the organization or simply creating a plan where one didn't previously exist - were cited most often (by 33% of respondents) in this category.  Also mentioned were efforts made in the area of merit increases, whether simply finding the funds to provide them to deserving employees or structuring practice so as to focus available merit dollars on the most deserving/highest performing workers.

2010's #2: Maintaining Competitiveness

Close behind paying for performance overall were efforts directed at keeping salaries and benefits competitive (mentioned by 40%), recognizing the importance of keeping those foundational programs strong even in a tough economy. 

Interesting, yes?

Remember, these results aren't indication of how many organizations pursued these kinds of initiatives.  Instead, they show what types of reward activities proved most successful (at least in the eyes of HR/compensation pros) in attracting, retaining and motivating talent during the challenging past year.

Agree?  Disagree? 

What would you call out as your organization's most successful 2010 reward action or initiative?

Comments

[Nancy Hess]

Ann,I have not employed a survey this year to answer this question as you have, but anecdotally, my clients are delving into process improvement and strategic thinking with more vigor than I have seen in a long time. In short, when I ask them their philosophy, they tend towards "we are all in this together" approaches. You are either "onboard" which means, an annual pay reward, or "not up to snuff" which means, on the way out. In addition, recognition awards, such as training and development opportunities, are more frequent than extra % increases. I do not include sales or business development in this arena. That is a horse of a different color.

[Gina]

Ann- In times like these it is more important than ever to become creative in rewarding our top performers. Things like a little recognition or change in title can go a long way.

[Ann Bares]

Thanks for the comments and thoughts, Nancy and Gina!