Synygy Announces Results of the 1999 Incentive Compensation Conference Survey Survey Reveals Flexible Plan Management as the Top Area for Improvement

Business Wire, Oct 21, 1999

BALA CYNWYD, Pa.--(BUSINESS WIRE)--Oct. 21, 1999--

According to a survey by Synygy, Inc., The Incentive Compensation Company(TM), incentive compensation professionals cited an overwhelming need to be better able to manage plans that are becoming increasingly complex and more frequently changed.

"We're not surprised that flexible plan management turned up as the number one incentive compensation issue. Incentive compensation plan designs reflect the complexities of a rapidly changing business environment," said Mark Stiffler, president and CEO of Synygy.

"Our clients have been telling us this for many years and we responded by creating software and processes that give our clients the flexibility and control that they need to effectively manage their plans."

Need for Improved Communication of Results

Respondents surveyed cited improving the understanding of their plans as the second most important area for improvement.

"The survey results support our long-held belief that management of incentive compensation plans should be about helping people to understand their plans so that they can help implement the corporate strategy embodied in the plans," said Stiffler. "Ultimately, our clients will be more successful by improving plan understanding rather than simply calculating payroll."

As for the methods of communication, the survey asked respondents to choose the method they use to communicate incentive compensation results to the people on their plans.

Results revealed that companies use a combination of three primary methods to communicate results to plan participants, using traditional mail to communicate results 70 percent of the time, e-mail 44 percent, and web-based applications 11 percent.

Impact of Improved Plan Management

Respondents were also asked to quantify the impact on revenues, margins, employee turnover, and costs of improving the management of their plans, including having enhanced flexibility and improved communications. On average, respondents said that if they could improve the management of their plans they would expect a:

-- 3.5% increase in company revenues

-- 2.7% improvement in margins

-- 6.0% reduction in employee turnover

-- 5.9% reduction in administrative and IT costs

-- 6.2% reduction in overpayments

About the Survey

Synygy conducted this survey at the Synygy 1999 Incentive Compensation Conference, "Best Practices Throughout the Enterprise" held September 23-24, 1999 in Philadelphia.

About Synygy

Synygy (www.synygy.com), The Incentive Compensation Company(TM), implements and manages incentive compensation plans for many of the world's largest companies. Synygy helps companies with over 200 people on variable compensation plans achieve a competitive advantage through better incentive compensation management.

Based in Bala Cynwyd, Pennsylvania, Synygy has been recognized for the past three years on the Inc. 500 and the past five years in the Philadelphia Business Journal's Philly 100.