How to Create a Winning Compensation Culture

By Dennis McCafferty  |  Posted 03-09-2017 Email

Say goodbye to underwhelming raises that don't keep up with cost-of-living increases. Say hello to a new era in which compensation aligns with an overall corporate culture that prioritizes talent recruitment and retention, according to a recent survey from PayScale. The accompanying "Comp Is Culture: 2017 Compensation Best Practices Report" indicates that the C-suite is recognizing employee compensation as a growing issue these days. As a result, a significant number of organizations are paying more than 3 percent in annual raises and are acknowledging the need to recognize strong job performances. This especially applies to CIOs, given that IT positions are considered the hardest to fill. In 2017, CIOs and other executives are expected to continue to combine merit-based pay and bonuses along with other benefits—including learning and development opportunities and fun perks—to establish an environment that encourages valued employees to stay. "For 2017, most of the predicted challenges center around the employee lifecycle: recruitment, engagement and retention," according to the report. "Demographics are a huge factor: It turns out that retaining Baby Boomers on the cusp of retirement is just as difficult as retaining Millennials. These future predictions bring us full circle: Respondents agree that compensation and culture are intrinsically linked." An estimated 7,700 employers and 147,000 workers took part in the research.

Dennis McCafferty is a freelance writer for Baseline Magazine.


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