PayScale is known as a pioneer of using the cloud to remit salaries to your employees. PayScale has announced the completion of its 2016 Compensation Best Practices Report (CBPR) which asks both employees and executives about their preferences in hiring decisions, pay and their thoughts on employee retention.
The survey queried over 7,600 people on broad topics such as salary transparency, pay increases and employee performance bonuses. The data found in this report is designed to help businesses hire smarter, faster and stronger without having to bring in multiple candidates.
Some of the top factoids found in the 2016 version of the CBPR are listed below:
- Employees are valued more at top performing firms. 86% of the people surveyed indicated that “Our people are our greatest asset” on the questionnaire.
- About 4 out of 10 businesses have adopted an open culture regarding salaries and pay practices
- Bonuses are given out at top-performing companies. 81% of successful companies have reported giving out some sort of bonus.
- Traditional pay increases are on the down tick – Payments for performance are becoming the new way to get a raise.
- A divide exists between employees and executives. While 40% say that they have a transparent culture regarding salaries, only 21% of respondents said that actualy have open discussions about pay.
- Annual reviews may not be worth the trouble. 44% of respondents said that HR has abandoned annual reviews for a frequent review process.
“We are in the midst of a sea change in the way companies think about compensation. More employers realize the importance of adopting innovative approaches to pay in order to retain the people who are making the largest impact,” says Mike Metzger, the President and CEO at PayScale.
“Although these modern compensation practices require a cultural shift for many organizations, our research shows there is significant benefit in abandoning traditional compensation practices in favor of more transparency around compensation and variable pay practices that recognize an individual’s contribution to the business,” Metzger added.
PayScale continues to revolutionize the way employees get paid using the cloud. To learn more about PayScale’s research including the methods in which PayScale can help your business, visit PayScale’s homepage for more information.