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When nearly 70% of your annual revenue is invested in rewards and incentives, it makes a compelling business case to optimize total rewards as one of the most powerful levers of organizational performance.

For WorldatWork Members The Next 70 , Workspan Magazine article;Total Rewards Inventory of Programs & Practices , research;Incentive Pay Practices , research;Market Pricing: Data, Directions & Decisions , research; For Everyone ‘Neither Dead nor Dying’: Studies Explore the Current State of DEI , Workspan Daily article;AI Just Might Reshape Your Rewards Strategies (for the Better) , Workspan Daily article;The Rise of Skills-Based Rewards, and What You Must Do About It , Workspan Daily article;How Much Have Rewards Practices Changed Since 2018?

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Because these types of projects are mostly concerned with reducing the legal risk exposure, they avoid obtaining — let alone communicating — broader insights that can help improve the compensation system for increased pay fairness.

Once they know the average pay amount, each company can adopt a competitive posture fitting the desired type of employee.

Input 2: Enduring Standards That Reflect Historical Financial Performance Enduring standards — or performance levels that, if sustained over time, would likely be deemed favorable to shareholders — often are overlooked in goal setting.

WorldatWork’s latest “ Pay Equity Study ,” published in January 2023, found that 70% of respondents’ organizations are acting on pay equity, up 4 percentage points from a year earlier and up 10 percentage points from 2019.

Figure 2 shows how the pay gap breaks down for four hypothetical companies, each based on an actual case.

., will continue to emerge and reshape the contingent worker marketplace. 2.