Keep Your Key Employees On-Board: Incentive Plan Trends For 2020
According to our 2019 Fall Flash Survey the trend of increasing incentive usage among Canadian organizations is continuing in Alberta, B.C., Ontario, and Quebec. With many organizations indicating lukewarm salary increases, we are happy to see better use of variable pay to control costs and keep key employees soaring high. Highlights include:
We see that IT Services industry taking off, leading all sectors with 40% increasing variable pay plans. Our 2019 Flash survey also indicate more IT Service organizations will be increasing their number of employees as well, so we expect incentives to become even more important in attracting top talent and reducing turnover.
Some sectors, such as Construction and Energy, have seen inconsistent performance in recent years. Progressive companies are offsetting this through short term incentive plans such as performance bonuses, profit-sharing, sales/ commission programs and recognition programs. These can often be been crucial in dealing with the most critical human capital challenges such as attracting key talent.
All in all, the use of incentive plans within organizations can not only motivate employees but also result in increased earnings, reduced turnover, enhanced collaborative efforts and boosted productivity. Therefore, aligning incentive plans with strategic goals and objectives are crucial for both the employee and employer. It is evident that incentive plans are an essential tool for every organization's growth in the early stages of 2020. How are you keeping your best people on board?
Click here for the full industry breakdown in the 2019 Fall Flash Summary.
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