ONLY TWELVE per cent of employers believe generational differences is a significant issue when it comes to designing and implementing total rewards programs. A recent survey revealed, however, that a majority believe it will warrant more attention over the next five years. Of the programs included in the survey, organisations report that the most prevalent reward programs are:
Recognition programs 85%
Paid time off 80%
Wellness initiatives 79%
These are believed to be most likely meet cross-generational needs. When asked which generation they currently spend the most effort and resources to attract and recruit, more than half (52 per cent) stated they attract and recruit equally across all generations.
Generation Y choose training over money
GENERATION Y graduates rate training and company culture far higher than salary and traditional perks when selecting an employer. According to a recent survey where more than 300 graduates were asked about their expectation and preferences, only 6 per cent said remuneration was very important in choosing an employer, while more than 70 per cent said professional development was top of the list.
Source: Cubic Consulting
Americans will see lower-than-expected salary increases
EMPLOYERS WILL be doling out smaller-than-expected pay raises and bonuses to employees in 2009. A recent survey of 411 large companies revealed that 42 per cent are revising their salary budgets and variable pay spending strategies related to the economic downturn or because of increasing cost pressures. For these companies, pay raises will decrease by an average of 1 per cent in 2009. The survey also found that companies who are revising their salary budget projections in 2009 are also considering implementing:
Source: Hewitt Associates
Employees don’t match business needs
FORTY PER CENT of business influencers do not believe the capabilities of their employees match their business needs for the next one to three years. A survey of 1200 key business leaders from Australian,China, Hong Kong, India, Malaysia and Singapore also found that 39 per cent of CEOs and decision-makers said they are not involved in any shape or form in shaping talent management strategies for their company. Additionally, 37 per cent of Australian senior leaders say they do not align talent management with business strategies nor do they address underperformance even when chronic.
Sustainability programs: regional or global?
COMPANIES ARE still grappling with how to structure their sustainability programs to ensure that they are effective in delivering on their goals while at the same time meeting key financial benchmarks. One particular problem is whether programs are best run regionally or globally. A global survey of more than 220 executives in multinational corporations that have sustainability programs found that 54 per cent of executives have adopted a regional approach, while 46 per cent seek a more global structure. Despite their conclusion that a regional focus works better (65 per cent), most executives (56 per cent) say that their companies will have a global program in three years.
Source: Economist Intelligence Unit
Fail to move from innovation to implementation
COMPANIES ARE adept at generating innovative ideas, but far less effective at turning those ideas into reality. Given the importance of innovation in driving growth in a competitive global economy, the findings of a recent survey suggest that the next battleground for companies will be around innovation sustainability –building a “machine” to institutionalise and formalise innovation processes and outcomes in a more structured way. The percentage of survey respondents (44 per cent) who felt their company was not good at moving quickly from idea to implementation outpaced slightly the percentage (42 per cent) who felt their companies did this well.
Source: Towers Perrin
Most popular executive perks
CELL PHONES are the most popular executive perks. A survey of 5300 organisations found that 60 per cent offered cell phones to executives as a perk, with 43 per cent of employers providing laptops or home PCs in 2008. Fewer than a third of organisations in the survey provided car allowances or company cars.
Businesses with revenues of more than $20 million were the most likely to provide executives with laptops or home PCs.
Source: Compdata Surveys
Expatriate employee numbers double
THE NUMBER of employees on international assignments increased by almost 90 per cent over the last three years. A survey of 243 multinational companies worldwide, including more than 94,000 expatriates,also revealed that the proportion of companies with international retirement plans increased by close to 40 per cent. According to its report, 47 per cent of companies surveyed said they had increased the deployment of traditional expatriates (employees on one-to-five -year assignments) and 38 per cent reported an increase in “global nomads” (employees that continuously move from country to country on multiple assignments).
Rise of religious diversity in the workplace
RELIGIOUS DIVERSITY in the workplace has been a rising trend for several years, driven by such powerful factors as immigration and globalisation. However it has not been reported as causing conflict within organisations. When asked whether there is religious diversity in their workplace companies reported:
Diversity and conflict 2%
No diversity 12%
Diversity but no conflict 98%
The survey of nearly 550 organisations showed that the top religious accommodation in the past 12 months was taking different religious beliefs of employees into account when planning holiday-related events.