Today we’re releasing the much anticipated 2015 Compensation Best Practices Report.
Based on data from more than 5,500 business leaders, the report reveals attitudes about compensation, hiring, and retention as the economy continues to recover from the recession. This latest research report shows that while most companies plan to grow in size and offer salary raises in 2015, employers are still very concerned about attracting and retaining top performing employees, which creates serious doubts about their ability to compete effectively in our rebounding economy.
Says Brian Sommer, founder of Vital Analysis:
“During the worst recession most employers have ever experienced, too many firms gave little thought to retention, compensation, and talent development. Managers felt that anyone who had a job would be content with that alone. Unfortunately, that uninformed or nonchalant attitude is very out of sync with the current economic situation. Today, employees have options and they intend to exercise them. Business leaders must adopt new processes and technologies if they wish to remain competitive.”
Key findings from the 2015 Compensation Best Practices Report include:
- 55 percent of organizations increased in size in 2014; only 9 percent of organizations decreased in size.
- 73 percent of companies expect their financial situation to improve in 2015.
- 89 percent of employers expect to give pay raises in 2015.
- 76 percent percent of employers give bonuses, and 43 percent of employers report having a bigger bonus budget for 2015.
- Three-quarters of respondents gave bonuses in 2014, more than in previous years.
- The main reason people leave medium and large organizations is for better compensation.
- 57 percent of respondents cite employee retention as a top concern. The Information, Media and Telecommunications industry is most concerned with employee retention.
- Half of all employees believe there are more job openings than qualified applicants to fill them. IT, management, and engineering are the hardest roles to fill.
- A huge need for market-based, real-time salary data exists. Nearly 78 percent of employers reported some degree of dissatisfaction with the compensation data available.
“Increasingly, a company’s ability to get compensation right is a prerequisite for achieving its growth projections,” said PayScale’s Vice President of Marketing, Tim Low. “Compensation data that reveals the realities of specific talent markets allows companies to attract their most desired candidates and retain existing employees who might otherwise be looking for a better deal.”
The report is a summary of survey data collected from small, medium, and large companies from North America and around the world. Get the complementary report here.
Want to see an overview? Click here to see the highlights from this year’s report.