Searching Pondering Equity-Based Long-Term Incentive Plans on page 52

More organizations are adopting a formal base pay structure amid a tight labor market and increasing focus on pay transparency and equity.

Fred Whittlesey, principal consultant at Compensation Venture Group SPC , said the current interest around crypto in compensation plans reminds him of the stock plans craze in the 1990s.

Alignment with business goals Respondents highlighted the challenge of balancing short-term and long-term priorities.

Hyper-personalized compensation may vary from organization to organization, but these are a few examples of the modular dollars-and-cents options employees may have to choose from, according to the Deloitte report and the experts interviewed for this piece: ;A lower base salary and a higher bonus opportunity versus a higher base salary and less bonus potential; ;Bonuses versus equity or stock options versus restricted stock units with different vesting schedules as performance rewards; ;The option to extend longer-term incentives by a year or two in return for a larger reward based on continued success with targets or objectives; ;Customized reimbursement; ;Retirement account matching versus student loan repayment matching; ;Longer-term employer contributions such as retirement versus shorter-term assistance such as emergency savings; “Personalized compensation lets you be really dynamic, and it has an incredible effect on retention,” said Marcy Klipfel, the chief engagement officer

These include offering only base salary and stock options with no short-term incentives (e.g., Netflix), setting significantly wider performance ranges in incentive plans (e.g., Spectrum Brands), offering a choice of pay devices (e.g., Iron Mountain, Tapestry, Netflix) and granting career shares (e.g., Lear).

The eight pathways are based on research-supported principles.

As new technology such as generative AI gets introduced into the workplace, a natural employee inclination is fear-based resistance out of job security concerns.

It carefully reviewed what was being asked of employees and their family members, including understanding new plan options and the required actions to get new well-being incentives.

Public-sector employees may not be familiar with terms like performance-based pay, variable pay, incentive compensation, equity compensation or wellness incentives.

The rule, intended to help close pay gaps , would serve as an incentive for employers to analyze and address pay disparities, in addition to fortifying the EEOC with data that could be used for enforcement.