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Telework Tops Among Rewards Growth
The 2008-2009 WorldatWork Salary Budget Survey found that telework – among all surveyed total rewards programs – has shown the most significant 12-month increase in both the United States and Canada. In contrast, the use of other employee rewards programs inched up only slightly in recent years, and a few even declined.
Telework grew considerably in the U.S., from 30% of organizations saying they offered it to employees in 2007 to 42% this year. In Canada, the increase was even more significant – rising to 40% from 25% a year ago.
“It’s been a perfect storm,” said Anne C. Ruddy, CCP, president of WorldatWork. “Rising gas prices, leading-edge technology, and the push for work-life flexibility have all come together in the past 12 months to create a pretty dramatic increase in telework across the U.S. and Canada.”
Most Cited Programs
Hiring bonuses were still the most commonly cited reward program among U.S. employers (70%), though only about half Canadian employers noted that. Canadian employers most often mentioned market adjustments/increase to base salary (66%), which was the third most commonly cited reward among U.S. employers (65%).
A comparison of rewards practices in the U.S. and Canada noted a number of similarities, as well as a few differences:
- Part-time employment with benefitsU.S., up from 32% a year ago.
- Retention bonusesU.S. with similar growth in Canada However, just as many U.S. employers cited this in last year’s survey.
- Stock grant programsU.S., soaring from 7% in 2004 to one-in-five employers this year – which was actually down 1% from the 21% that mentioned it a year ago.
- Stock option programsU.S. employers in 2008, but has been in a slow, steady decline since 2004, when 27% had such programs in place. Similar trends were evidenced at Canadian employers, except for a surge to 28% in the 2007 survey.
- Spot bonusesU.S. employers were more apt to pay spot bonuses: 45% compared to 34% of Canadian employers in 2008
- Pay ratesU.S. employers said they paid above market rates, as did a quarter of Canadian employers.
- rit increase budgets
Survey data was collected in April 2008 with a 3% margin of error. Survey respondents were WorldatWork members employed in the HR, compensation and benefits departments of mostly large North American companies.
align="center"> Programs Used to Attract and Retain Employees in the U.S. | ||||||||||
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2004 | align="center"> | class="bwcellparagraphmargin" align="center">
2005 | align="center"> | class="bwcellparagraphmargin" align="center">
2006 | align="center"> | class="bwcellparagraphmargin" align="center">
2007 | align="center"> | class="bwcellparagraphmargin" align="center">
2008 | ||
class="bwcellparagraphmargin">Sign-on/hiring bonus | 61% | 64% | 69% | 70% | 70% | |||||
class="bwcellparagraphmargin">Employee referral bonus | 63% | 63% | 65% | 66% | 69% | |||||
class="bwcellparagraphmargin">Market
adjustments/
| 55% | 60% | 64% | 65% | 65% | |||||
class="bwcellparagraphmargin">Flexible work schedules | -- | -- | -- | 62% | 63% | |||||
Flextime | -- | -- | -- | -- | 51% | |||||
class="bwcellparagraphmargin">Compressed work week | -- | -- | -- | -- | 27% | |||||
class="bwcellparagraphmargin">Telecommuting/
| -- | -- | -- | 30% | 42% | |||||
class="bwcellparagraphmargin">Job sharing | -- | -- | 12% | 14% | 13% | |||||
class="bwcellparagraphmargin">Spot bonus (individual) | 43% | 43% | 45% | 46% | 45% | |||||
class="bwcellparagraphmargin">Retention/stay bonus | 27% | 30% | 35% | 38% | 38% | |||||
class="bwcellparagraphmargin">Part-time employment with benefits | -- | -- | 28% | 32% | 37% | |||||
class="bwcellparagraphmargin">Paying above market | 25% | 28% | 30% | 29% | 31% | |||||
class="bwcellparagraphmargin">Stock option program | 27% | 25% | 24% | 23% | 22% | |||||
class="bwcellparagraphmargin">Stock grant programs | 7% | 10% | 16% | 21% | 20% | |||||
class="bwcellparagraphmargin">Project
milestone/
| 16% | 17% | 18% | 21% | 18% | |||||
class="bwcellparagraphmargin">Special cash
bonus/
| 17% | 19% | 20% | 20% | 19% | |||||
class="bwcellparagraphmargin">Separate salary structures | 13% | 12% | 13% | 15% | 15% | |||||
class="bwcellparagraphmargin">Exempt overtime pay or time off | 14% | 15% | 13% | 14% | 14% | |||||
class="bwcellparagraphmargin">Larger merit increase budgets | 7% | 9% | 10% | 11% | 9% | |||||
class="bwcellparagraphmargin">Phased retirement | -- | -- | 4% | 6% | 6% | |||||
class="bwcellparagraphmargin">Paid sabbaticals | 3% | 3% | 2% | 3% | 3% |
align="center"> Programs Used to Attract and Retain Employees in Canada | ||||||||||
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2004 | align="center"> | class="bwcellparagraphmargin" align="center">
2005 | align="center"> | class="bwcellparagraphmargin" align="center">
2006 | align="center"> | class="bwcellparagraphmargin" align="center">
2007 | align="center"> | class="bwcellparagraphmargin" align="center">
2008 | ||
class="bwcellparagraphmargin">Market
adjustments/
| 58% | 56% | 65% | 64% | 66% | |||||
Flexible work schedules | * | * | * | 62% | 64% | |||||
Flextime | * | * | * | * | 58% | |||||
Compressed work week | * | * | * | * | 30% | |||||
Telecommuting/telework | * | * | * | 25% | 40% | |||||
Job sharing | * | * | 12% | 17% | 19% | |||||
Employee referral bonus | 46% | 47% | 48% | 51% | 61% | |||||
Sign-on/hiring bonus | 44% | 44% | 51% | 50% | 51% | |||||
Part-time employment with benefits | * | * | 34% | 32% | 38% | |||||
Retention/stay bonus | 26% | 27% | 30% | 37% | 37% | |||||
Spot bonus (individual) | 27% | 28% | 30% | 30% | 34% | |||||
Paying above market | 28% | 35% | 30% | 31% | 25% | |||||
Stock option program | 28% | 24% | 23% | 28% | 23% | |||||
Project milestone/completion bonus | 17% | 20% | 23% | 42% | 23% | |||||
Exempt overtime pay or time off | 19% | 21% | 20% | 18% | 19% | |||||
Larger merit increase budgets | 5% | 9% | 12% | 16% | 16% | |||||
Special cash bonus/group incentives | 13% | 14% | 16% | 17% | 14% | |||||
Separate salary structures | 9% | 7% | 10% | 9% | 13% | |||||
Stock grant programs | 8% | 5% | 9% | 13% | 13% | |||||
Phased retirement | * | * | 6% | 8% | 8% | |||||
Paid sabbaticals | 6% | 3% | 3% | 4% | 5% |