Annual HR Salary Survey - 2000 SHRM/Mercer Human Resource Management Compensation Survey - Brief Article - Industry Overview - Statistical Data Included

Training & Development, Nov, 2000 by Patricia Schaeffer

Incentive Pay

Responding to the labor market, companies are paying more to stay competitive. The role of training and development is becoming an increasingly important retention tool and a key factor in rising pay levels. The trend continues in shifting a significant portion of additional compensation spending into variable pay programs. The key advantage: The onetime payments must be re-earned each year and don't compound over time as base salary increases do.

The survey indicates the percent of employees in a particular job who are eligible for short- and long-term incentives, as well as the types of long-term incentives typically provided. Consistent with past years, the percentage of incumbents eligible for short-term incentive programs has increased, particularly at the lower end of the salary scale. Among t&d professionals, more managers and above are eligible for long-term incentives as part of their total compensation package. The most common long-term incentives include nonqualified stock options, followed by incentive stock options.

Pat Schaeffer is a senior consultant in the Philadelphia office of William M. Mercer, headquartered in New York, with offices in more than 40 U.S. cities. The firm is the U.S. operating company of William M. Mercer Companies LLC, a worldwide consulting organization; pat.schaeffer@us.wmmercer.com.

The survey is available for purchase by calling Mercer, 800.333.3070. The cost is $450 for participants, $775 for nonparticipants.