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Workers Satisfied With Compensation; Unsure About Performance Reviews, Finds Hudson Survey National Survey of 10,000 Workers Reveals Tenure Trumps Performance for Determining Pay NEW YORK, June 15 /PRNewswire/ -- Although two-thirds (66 percent) of U.S. workers are very or somewhat satisfied with their compensation and benefits, many organizations still apply inconsistent standards to setting pay levels and managing employee performance. This is according to the new "Pay and Performance in America: 2005 Compensation and Benefits Report" and survey by Hudson, which also finds that one-third (34 percent) of the workforce rarely or never receives a formal performance review and another third (34 percent) is unsure about the review criteria. A majority of workers (60 percent) indicate that tenure determines pay where they work, while just 35 percent believe that performance is a more important deciding factor. Further, three in ten (31 percent) report that their company does not have a consistent standard or process to determine employee compensation, which may explain why only half (49 percent) believe that they are paid on par with their peers. "Pay for performance is still only a work in progress for many organizations," according to Peg Buchenroth, director of compensation and benefits, Hudson Highland Group. "With soaring benefit premiums and nominal merit increases the norm, companies seeking to control costs and retain top talent will have to more closely align compensation strategies with clear performance metrics. Employees with an entitlement perspective about pay increases may be in for a surprise." However, despite infrequency and confusion about performance reviews, 71 percent of workers rate the process as very or somewhat fair. This figure rises to 83 percent for those workers who are aware of the review criteria and tumbles to 44 percent among those who are not. Employees are generally upbeat about their income, with 38 percent expecting to make more this year than last year and 68 percent having received a raise in the last year. Only 13 percent have gone more than two years without a pay increase, and one-fifth (19 percent) anticipate that their overall income will be lower this year. Hudson's survey explores a variety of aspects surrounding compensation, benefits and employee performance, with results segmented by factors including company size, employee type, age, industry, race, and gender. Other key findings include: * One-fifth (20 percent) of managers rarely or never receives a review, and about the same percent (22 percent) is uncertain about the review criteria. * While half (49 percent) of workers would not consider working for a company that does not offer health benefits, a quarter (26 percent) already work without health insurance and an additional 16 percent would consider this scenario. * Even among those companies that do offer a retirement plan -- and 33 percent in our survey did not -- 12 percent do not participate. That opt-out figure rises to 19 percent among those aged 18-29 and 21 percent of people working part-time but looking for full-time employment. * Among occupational sectors, IT workers are the most likely (45 percent) to believe their organizations give more money to stronger performers -- while at 63 percent healthcare workers are the most likely to indicate tenure plays a stronger role. * Entrepreneurs are among the most pleased with their overall compensation, with 30 percent saying they are very satisfied. However, more than one-quarter (27 percent) expects to earn less this year than last year. Additional information about the Hudson compensation survey is available in "Pay and Performance in America: 2005 Compensation and Benefits Report," which can be found online at http://www.hudson-index.com/node.asp?KWD=compensation. The survey is based on a national poll of 10,001 U.S. workers and was compiled by Rasmussen Reports, LLC, an independent research firm (RasmussenReports.com). Hudson, one of the world's leading professional staffing, outsourcing and human capital solution providers, also publishes the Hudson Employment Index(SM), a monthly measure of the U.S. workforce's confidence in the employment market. Next month's Hudson Employment Index(SM) will be released on July 6, 2005. Hudson Hudson delivers specialized professional staffing, outsourcing and human capital solutions worldwide. From single placements to total solutions, the firm attracts, retains and develops talent to meet the specific business needs of each client. Global practice areas include Accounting & Finance; Engineering, Operations & Scientific; Human Resources; IT & Telecommunications; Legal; and Sales & Marketing. Hudson is a division of Hudson Highland Group, Inc. (NASDAQ:HHGP) one of the world's leading professional staffing, retained executive search and human capital solution providers. More information is available at Hudson.com. DATASOURCE: Hudson Survey CONTACT: Nikki Leonardi of Hudson, +1-813-890-7521, , Anshula Ahluwalia of Ogilvy Public Relations, +1-312-397-6074, Web site: http://www.hudson.com/ http://www.hudson-index.com/node.asp?KWD=compensation

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