Workers Satisfied With Compensation; Unsure About Performance Reviews, Finds Hudson Survey
June 15 2005 - 7:00AM
PR Newswire (US)
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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