Searching Pondering Equity-Based Long-Term Incentive Plans on page 38

Recruitment Recruitment, a complicated process that has long-term impact, takes up a lot of time and resources within the HR function.

Key Takeaways Offering incentives.

While most organizations are doing two adjustments per year, they are being more targeted in their approach, with over 50% conducting compensation review of specific employee groups (further 27% are planning/considering) and over 40% paid targeted base salary increases for specific employee groups (further 34% are planning considering).

Starting on Oct. 1, 2030, this amount will increase to 0.50% of wages for both employer and employee.; ;EWF contributions and accrued interest must be paid by the fund to registered employees at termination of employment for any reason or to designated beneficiaries in the event of death.; Global benefits and regulatory experts say employers should evaluate the impact of the change on their total rewards and benefits strategy, as well as assess long-term costs and employee retention effect.

May help bring in new talent and ideas.; ;Cons: May create pay equity issues, may be expensive and does not guarantee long-term retention.; Retention Bonus: The Defensive Arrow.

The WorldatWork study, which reflects TR programs and practices for the 2023 plan year, covered offerings from base pay and incentives to paid/unpaid time off and retirement to development opportunities and workplace flexibility.

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Options outlined by Korn Ferry include: ;Single bonuses based on the completion of AI certifications or training programs; ;Periodic bonuses calculated as a percentage of base pay; ;Equity vesting over several years (which also carries an additional retention benefit); According to Seifert, structuring AI premiums in this way, as opposed to building them into base pay, helps employers avoid: ;Substantial salary gaps between workers with otherwise similar roles;; ;Pay transparency and salary disclosure challenges; and,; ;The possibility of artificially inflating the value of a role and eventually needing to increase all salaries proportionately as the skills become more ubiquitous.; Variable compensation structures come down to paying not just for AI skills but for their outcomes , Seifert said — which, along with the skills themselves, organizations need to identify and explicitly articulate to make them measurable.

The union is also seeking to expand vacation pay and available time off based on years of service.

If you’re planning a move like this, consider these best practices to make sure the change leads to long-term success.