As uncertainty continues to buffet the economy, companies are looking for ways to keep employees feeling valued while maintaining their compensation policies.
A Deloitte survey shows lower earnings and falling stock prices decimated the value in some companies’ annual and long-term incentive plans in 2008, leaving them searching for ways to help employees feel valued and motivated.
Of 151 companies of all sizes and industries surveyed in Retention Strategies During Difficult Economic Conditions:
- 53% are planning to adjust this year’s annual incentive plans due to current economic conditions.
- 19% will modify their plans’ performance targets.
- 14% will change the performance measures, such as including more strategic, operational or individual goals.
Source: Deloitte Consulting LLP, Retention Strategies During Difficult Economic Conditions, www.deloitte.com/us/retentionsurvey08.