Whenever we conduct a search - regardless of position level, function or industry - we ask each prospective candidate for their current salary information. In almost all cases, we get current salary and bonus/commission information. The result is that for each position, we have incredibly up-to-date, (hopefully) accurate and current market information. For each and every search, we actually speak to between 150 and 767 (our actually record!) people. This represents an amazing database - larger than many compensation study samples.

What are the trends?

We are not compensation consultants; we are simply people with large amounts of current and relevant compensation package data. In pooling our collective knowledge here AND in doing a literature search, we are seeing the following as trends in this market at this time:

Top performers continue to do well in this market

• Most companies are looking for an opportunity to pay their top performers who helped them get through 2009.
• Variable pay will be the focus for compensation budget planning. Studies show most companies are not increasing their base salary budgets in 2010.
• The days of giving everybody an increase (between 1% and 4%) are going away. This practice gave the wrong message to everyone - the poor to average performers and certainly the top performers.
• Organizations are gravitating toward compensation systems that promote goal achievement, organizational flexibility and variable pay (for performance).

Over the next few entries, we will go further into trends and the details behind them. We will also explore how compensation planning and the concern over employee engagement work together/interact.