We have to pay you?
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).