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2021 Compensation Budgeting Forecast Part 2: Incentives, Bonuses, and Variable Compensation

Astron Solutions

2021 has been a year of uncertainty, especially in terms of compensation increase budgeting. Many of Astron Solutions’ clients have requested a variable pay program review, examining effectiveness in retaining key talent necessary to meet 2021’s strategic objectives. First, let’s consider Willis Towers Watson’s views.

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Planning for 2023: Incentives, Bonuses, and Variable Compensation

Astron Solutions

Additionally, 49% of companies continue to enhance recruitment offers with sign-on bonuses and equity/long-term incentive awards, while over 21% are planning or considering doing so in the next few years. base salary and short- and long-term incentive plans), and another 35% are planning or considering. Long-Term Incentives.

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Are Pandemic Hiring Practices Contributing to Churn?

Hospital Recruiting

In 2021 reports showed 30% of healthcare workers either quit their jobs or were laid off. They needed to offer higher than normal wages, signing bonuses, and enhanced benefits just to maintain recruitment levels. For existing staff, these incentives created new resentments, causing staff to leave and the cycle to repeat. .

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Planning for 2022: Incentives, Bonuses, and Variable Compensation

Astron Solutions

Let’s take a look at WorldatWork’s perspective on variable pay heading into 2022 ( Salary Budget Survey 2021-2022 ): Eighty-five percent of organizations reported using variable pay in 2021, a 1% increase in the use of these programs. Next year’s projected variable pay budgets closely mirror those budgeted in 2021.

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Industry Insights: Senior Care

Payactiv

Source: OnShift Workforce 360 Survey, Fall 2021. Source: OnShift Workforce 360 Survey, Fall 2021. Source: OnShift Workforce 360 Survey, Fall 2021. Offer a healthy mix of perks, like flexible hours, incentives and competitive, on-demand pay. Workforce Outlook: Challenges in the Next 3 Years. struggle to find childcare.

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Employee bonus programs: What’s right for your company?

Insperity

Employers usually offer bonuses to employees for a specific purpose (for example, to reward certain behavior or to recognize the achievement of established goals). For employees, bonuses are very popular because they represent an opportunity to earn more money beyond what their salary or hourly rate dictates. How employers benefit.

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Industry Insights: Healthcare

Payactiv

A Medscape poll of 10,788 nurses conducted over the summer of 2021 found that at least 1 in 5 respondents in each nursing position category reported being very burned out or burned out. These include flexible hours and scheduling, increased pay, vaccination incentives, employee discounts and training, and more.