Searching executive compensation on page 95

See Issue Journal of Total Rewards Q3 2021 This issue looks at ways to fix Social Security’s funding gaps, a pay equity primer for executives, investing in retail employees, and more.

Policy manuals, compensation philosophy statements and articles on managing compensation often use the terms “internally equitable” and “externally competitive” in reference to setting pay rates.

Workspan Daily article; Financial services company Goldman Sachs Ayco recently analyzed the benefits and compensation offerings at more than 400 client companies and found those respondents are increasingly allowing employees to convert paid time off (PTO) into an equitable cash value directly applied toward: ;Student loan payments; ;401(k) accounts; ;Health savings accounts (HSAs); ;Charitable contributions, including donating time to other employees; ;529 plan contributions; ;Monetary payouts; In addition, the Goldman Sachs Ayco report showed more than 25% of these companies have a PTO purchase program, which allows employees to buy and sell their vacation days.

An overly dominant corporate leadership can put further distance between executives and employees.

Tangible Considerations Organizations often view interim workers as less expensive than permanent employees because they don’t carry the ongoing compensation costs nor do they pay benefits or payroll taxes, which average about 31% of total compensation (U.S.

While culture is certainly an organizational imperative, most employers intrigued by this model will need to take a brass-tacks approach by examining their compensation strategy as well as staying ahead of potential compliance hurdles.

For WorldatWork Members ;Bonus Programs and Practices , research; ;2024-2025 Salary Budget Survey , research; ;Action Versus Motion , Workspan Magazine article; ;Rewarding Great Ideas: Using Pay to Encourage Innovation , Journal of Total Rewards article; ;Incentives and Recognition: An Evidence Review , Journal of Total Rewards article; At the heart of successful organizations lies a compensation strategy that attracts, retains and motivates employees.

“This growing patchwork of laws signals a significant shift in how employers approach compensation, and it is something they’ll need to navigate carefully,” Hendrickson said.

Editor’s Note: Additional Content For more information and resources related to this article, see the pages below, which offer quick access to all WorldatWork content on these topics: ;Employee Benefits; ;Employee Compensation; ;Employee Experience; ;Well-Being; ;Workforce Engagement; #1 Total Rewards & Comp Newsletter Subscribe to Workspan Weekly and always get the latest news on compensation and Total Rewards delivered directly to you.

This was a main finding from WorldatWork’s 2022 “ Compensation Programs & Practices Survey ,” which found nearly 90% of the 1,064 organizations surveyed use a formal base pay structure and almost half of those without a structure are considering putting one in place.