Searching Pondering Equity-Based Long-Term Incentive Plans on page 16

It is crucial to design plans that incent the right actions and align with strategic objectives.

Consider 2022, a year when actual short-term incentive payouts exceeded targets across most employee levels — with almost 50% of companies saying that their short-term incentive plan would pay above target in 2022.

WorldatWork’s Pay Equity Study found that 70% of organizations are taking action on pay equity, which is up 10% from 2019 and 4% from 2021.

Get fresh market pay data to update on-target earnings: base salary plus target incentive.

In general, this approach: ;Provides the best employee experience due to permanency;; ;Requires significant budget expansion and long-term financial planning; and,; ;May accelerate wage-price spirals in hyperinflationary economies.; 4.

For WorldatWork Members ;Integrating Pay Equity Compliance with Effective Salary Administration , Journal of Total Rewards article; ;Using Analytics to Fully Assess and Close the Pay Gap , Journal of Total Rewards article; ;Solving the Pain Points in Pay Equity Analysis , Workspan Magazine article; ;Salary Budget Planning Guide , tool; ;Pay Equity Planning Guide , tool; For Everyone ;WorldatWork: 2026 Salary Increase Budgets Project U.S., Global Caution , Workspan Daily article; ;More Organizations Deploying Salary Structures to Tackle Compensation , Workspan Daily article; ;The Impact of Pay Compression on Pay Equity , Workspan Daily article; ;A Road Map for Developing Your Global Pay Equity Strategy , Workspan Daily article; ;2025-2026 Salary Budget Survey , research; Navigating a challenging labor market continues to put pressure on internal pay equity in many organizations.

It examines such issues as which organizations are taking action on pay equity, how frequently organizations conduct pay equity analyses, the barriers and motivators of pay equity work, what types of compensation are included in pay equity analysis, how organizations share the results of pay equity analyses and more.

For the plan to be most effective, you will need to collect base pay, incentive pay and all related performance data that drives the incentive payments.

Elections can be changed to increase contributions; no qualifying event is needed.; ;Employees can make individual after-tax contributions (up to the annual limits) until April 15.; ;Excess contributions beyond limits will be subject to an excise tax if not returned from the HSA.; Wellness incentives ;Deadline for completing core activity (health risk assessment [HRA] screening, point accumulation, etc.); ;Amount of incentive(s); ;Explanation of the reasonable alternative standard (RAS) to receive the reward for qualified employees; Qualified pension plan employer match — 401(k), 403(b), etc.

Course Health and Welfare Plans: Strategic Planning and Design Learn advanced, cost-effective strategies for designing and managing employee health and welfare benefit plans.