How an Increasing Contingent Workforce Impacts Company Culture

Compensation Cafe

As this Politico article summarized: “From 2005 to 2015, according to the best available estimate , the number of people in alternative work arrangements grew by 9 million and now represents roughly 16 percent of all U.S. workers, while the number of traditional employees declined by 400,000. And then there’s a third kind of worker – neither full-time employee nor true independent contractor. Participation in formal and informal employee recognition efforts also matter.

Where Have All the Raises Gone?

Compensation Cafe

Cited in the article, analyst firm Aon Hewitt calls this a “drastic shift” based on the firm’s annual survey on salaried employee compensation. Give all employees annually an across the board Cost-of-Living Adjustment (COLA) of approximately 2%. Doing so broadens dramatically the reasons for which employees can be rewarded throughout the year in sync with the efforts being recognized. Compensation Philosophy Incentives/Bonuses Recognition Total Rewards