Compensation Planning - Are You Up-To-Date?

October 04, 2019
Blog
Benefits
Compensation Planning
Read time: 2 mins

Last week, MRA hosted its annual CompTrends: Pay, Benefits, Best Practices event, where input from 655 organizations from across the U.S. was unveiled after participating in MRA’s 2019 Compensation Trends Survey. There were 800 people in person and via webinar who took advantage of this worthwhile morning.

Here are the top ten points that had people talking.

  • Same as it ever was. It didn’t come as a surprise that the 2020 overall projected pay increases will be 2.9 percent (including zeros) and 3.2 percent (excluding zeros).
  • But… More organizations are increasing pay using incentives, variable pay programs and lump sum payments.
  • The economy is strong. Organizations are hiring, unemployment is low, there is an abundance of jobs and consumers are spending.
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  • However, there is pessimism in the air. Turnover is on the rise, there are trade war and tariff concerns and 2020 brings with it an election year.
  • Employers are staying in tune with the market when it comes to pay. Twenty one percent of companies are pricing their jobs at least monthly, and 66 percent do it twice a year.
  • Compensation and benefits packages are getting more creative. There were 15 different areas in the top five total rewards for both employers and employees, including unlimited vacation, pets at work and adoption assistance.
  • When it comes to total rewards for employers - the three most important factors are:
    • A diversified workforce - 96 percent
    • Incentive compensation - 85 percent   
    • Benefits (health, dental, etc.) - 83 percent
  • And the top three for employees are:
    • Base pay/salary – 94 percent
    • Flexibility in work hours – 94 percent
    • Paid time off - 90 percent
  • Pay transparency isn’t common. Only two percent of organizations publish all pay ranges and/or employees’ salaries.
  • Total compensation statements are growing in popularity. Organizations are showcasing their compensation strategies:
    • 35 percent of organizations produce a personalized total compensation statement annually for employees
    • 31 percent are considering doing so

For more information on MRA’s 2019 Compensation Trends Survey, log into the MRA website and check it out.