As the econcomy recovers, employers are gaining confidence. Pay freezes are thawing and median pay increases are expected to rise to three percent this year, up from 2.7 percent in mid-2010 and 2.2 percent at the beginning of 2010. As a result, employers are turning their efforts towards implementing effective attraction and retention strategies.
A recent Buck Consultants survey, “Reviving and Inspiring the Workforce: 2011 Compensation Trends Survey,” found that a majority of employers (63%) are using hiring bonuses. The report also suggests that roughly 40 organizations offer, or plan to offer, retention bonuses.
Other strategies aimed at reducing turnover include:
- New career development opportunities (41%)
- Market pay adjustments (30%)
- Larger base pay increases (24%)
- More non-cash recognition (18%)