Strategic Rewards and Pay Practices

The Need for Execution


Over the last few years, a difficult economy and rising benefit costs have prompted companies to look carefully at their approach to aligning rewards with business strategy. As economic and company performance improves, the challenge has moved to effectively implementing those reward strategies.

Survey Results

Key findings

  • Despite higher benefit costs, short-term incentive (STI) plan funding and payouts are reflecting improved economic conditions and company financial performance.
  • In light of stock option accounting changes, nearly four in ten companies (39 percent) are still adjusting their stock programs
  • Poor performers receive on average a 2.5 percent annual pay raise, and more than a quarter (27 percent) of companies with STI plans award bonuses to employees who do not meet expectations
  • Employers recognize that there is room to improve their performance management systems
  • Fifty-eight percent of employers report at least moderate difficulty attracting criticalskill employees

Search by Year

  • 2005
    This is a Member Only Benefit.

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