Astronology®: 2020 Compensation Budgeting Forecast Part 2: Incentives, Bonuses, and Variable Compensation

Astron Solutions

The design and implementation of variable compensation programs continue to grow throughout 2019 and it appears that this trend will continue into 2020. WorldatWork found that 84 percent of surveyed organizations used variable pay as part of their compensation program in 2019.

Astron’s Yearly Compensation Review Part II: Incentives, Bonuses, and Variable Compensation – Oh Boy!

Astron Solutions

As Astron’s clients begin their 2019 compensation program budgeting, we are often asked whether or not the practice of providing variable compensation will grow, shrink, or remain about the same as in 2018. employers gave out performance-based bonuses. Photo by Lukas from Pexels.

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Compensation Dentistry (part 1)

Compensation Cafe

Compensation programs can often be the same. Most of us do our regular maintenance and keep our base pay in line with our philosophy and relevant data. Annual and long-term incentive plans are often not as well cared for. Yes, incentive plans can be harder than base pay.

6 Things You Think Are True, But Aren’t (Compensation Edition)

Compensation Cafe

The video got me thinking about things compensation professionals believe that have little, or no, foundation in reality. Incentive pay motivates people to perform. It has been sold to businesses that a great incentive program can motivate a person.

Do Your Incentive Plans Motivate Choking?

Compensation Cafe

Could it be that we are designing and communicating incentives for our highest performance all wrong? This study specifically looked at the impact of incentives on motor and neurological performance in high-pressure situations. Dan is a leading expert on equity compensation issues.

11 Reasons Your Equity Compensation Survey Data is Wrong

Compensation Cafe

And, with equity compensation the final answer is even squishier than other types of compensation. Data seems to be all over the place. Equity compensation really is that messy. That’s right, it’s at least eleven times as fun as basic variable compensation.

The Not-so-secret Formula to Making Incentives Work

RecognizeThis!

To be effective, recent research suggests incentives are best paired with recognition. Whether or not incentive programs are effective has been a long standing question, spanning multiple academic disciplines. Bonus & Incentives Social Recognition employee motivation incentives

An Unpopular Sales Incentive Plan Design Fiasco

Compensation Cafe

The new sales incentive plan was not well received. Their disapproval disappointed the corporate headquarters compensation experts tasked with the duty to faithfully but delicately comply with the incentive program guidelines supplied by the division's senior management.

Your Brain on Incentives

Compensation Cafe

b) This is your brain on incentives. What can we possibly learn about incentive compensation from functional magnetic resonance imaging (fMRI)? There is no shortage of research and data on either side of this questions. (a) This is your brain. (b)

Cafe Classic: What Do CFOs Wish Compensation Professionals Knew?

Compensation Cafe

Editor's Note: We recently featured Dan Walter's Classic post on what CEOs want from compensation professionals. Recently I provided some insight into what your CEO is thinking when you talk to them about compensation. Heck, they even enjoy being compensated (like most of us!)

3 Tips for Effective Incentive Compensation Management

HRsoft

That’s why so many business leaders opt for incentive compensation. Employers utilize incentive compensation plans to reward employees for performance that goes above and beyond. Incentive compensation management doesn’t have to be difficult.

Should You Scrap Your Long-Term Incentive Plans?

Compensation Cafe

If you're like most companies, you provide stock options, restricted stock grants, and other long-term-incentives to your senior executives. But do you know why you provide those incentive packages? But are those incentive packages working ?

Astron’s Yearly Compensation Review Part III: Non-Profit Executive Compensation Planning for 2019

Astron Solutions

This Astronology® , the third in our three-part series, examines non-profit executive compensation. In considering non-profit executive compensation, employers and Board have two primary legal concerns. Any portion of compensation paid to a licensed medical professional (e.g.,

Unleashing Your Inner Scientist: Lab Mindsets & HR/Compensation Experiments

Compensation Force

And I have borrowed shamelessly from their material to create a set of rules for compensation and HR experimentation, presented below for your review and response. Experimentation, it seems, is on a lot of our minds lately.

Be a Compensation Paleontologist

Compensation Cafe

Is your compensation structure a Payalotasaur? No matter your approach to pay, you are probably acting as a Compensation Paleontologist to get things done. The best compensation pros do much the same thing. Where useful data is available, they use it.

The 5 Elements of a Good Incentive Plan

Compensation Today

Offering incentives is a practice that has seen increased popularity over the past decade. In PayScale’s 2017 Compensation Best Practices Report , over 60 percent of organizations surveyed said they give individual incentives, and nearly a quarter of them reported giving team incentives.

Binge Watching at Compensation Cafe!

Compensation Cafe

I often talk about employee communications at Compensation Cafe. Following are their insights into implementing incentive pay and sales compensation, with additional information on how to accomplish their recommendations.

Corporate Social Responsibility, Corporate Performance and Executive Compensation

Compensation Cafe

Is there a relationship between corporate social responsibility, corporate performance, and executive compensation? Similarly, there is disagreement about the direction of the relationship between CSR and the strength of the corporate performance - executive compensation relationship.

Thank You for 10, 360 and 180,000 Reasons

Compensation Cafe

The recognition of each of you reading this post, and anyone who has ever read a post on the Compensation Café. He has three metaphors for every occasion and is a leading expert on incentive plan and equity compensation issues. This post is about recognition.

The Immutable Laws of Compensation (Part 2)

Compensation Cafe

The Third Immutable Law of Compensation: Compensation is always done for, and by, people. Second Corollary: Compensation strategies, decisions, and execution will always contain errors or assumptions that cause them to go awry. (See See Dan’s Third Law of Compensation Motion.).

Time, Value and a Bonus

Compensation Cafe

We discussed the impact of bonus accrual accounting standards on balance sheets. The accruals cost us millions, but the executives value their bonus at a fraction of its face value.” We then spent two hours discussing that statement. Pressures on bonus structures.

You ARE Being Replaced by AI

Compensation Cafe

Just a few months ago the last compensation professional on earth was terminated by their corporate overlord. People must be attracted, motivated and even retained (except for those poor saps from the compensation department.) September 5, 2028. The day has finally arrived.

Compensation Work and Skin in the Game

Compensation Cafe

I think it could raise some interesting questions about how compensation jobs and functions are defined and organized. . How quickly could you (compensation professional) get your head around the differences in skills, practices and behaviors needed?

5 Features to Look for in Compensation Analysis Software

HRsoft

If you’re considering compensation analysis software for your organization, you may be shopping around to find the best fit for your needs. There are many factors to consider, including your company’s specific compensation planning processes and its technology budget.

Cafe Classic: 5 Lessons from a Failed Startup Applied to Compensation

Compensation Cafe

As I read them, I realized each one applied to the world of compensation just as much as they did the world of entrepreneurs. I thought I’d share these with the Compensation Café readers and invite readers to add their own lessons. We all need to clean our compensation house more often.

A Small Problem for Compensation Professionals

Compensation Cafe

But one important family of compensation, equity, is almost completely missing from this year’s event. It is easy to see why so many compensation professionals struggle with better use of equity when one of the few industry events provides so little in the way of information. .

5 Features to Look for in Compensation Analysis Software

HRsoft

If you’re considering compensation analysis software for your organization, you may be shopping around to find the best fit for your needs. There are many factors to consider, including your company’s specific compensation planning processes and its technology budget.

Why Don't You Invite Yourself to Your Next Executive Interview?

Compensation Cafe

Do we really have grassroots support for compensation philosophies? Compensation or total rewards departments that have a philosophy statement often report that they don't know where it is, or whether it is up to date. How often do you age your data?

Growing a Healthy Compensation Program

Compensation Cafe

If you're an HR office of one, busily juggling everything from beneficiary forms to incentive awards, it's hard to believe that you share any pressures with other HR managers. Compensation practices you typically see in an organization of fewer than 100 employees.

Sales Incentives: Direct Sales vs Indirect Sales

Workstride

What is the difference between sales incentives and indirect sales incentives? First, the main difference between sales (or direct sales) incentives and indirect sales incentives is who the salesperson works for. Here are the ways direct sales and indirect sales differ in terms of incentives. Data Collection. An incentive platform allows these companies to know their users and rewards them all within the same program.

How to Make Headway on Pay Transparency

Compensation Cafe

What I'm talking about is giving employees enough information to understand how compensation decisions are made in your culture. Employees gather statistics-lite data from sites like Payscale, Glassdoor and Quora and treat it as equivalent to any data you may offer.

Astron’s Yearly Compensation Review Part I: Base Pay Projections

Astron Solutions

Effective organizations will explore four key areas to better understand the “best” approach when it comes to 2019 base pay compensation budgeting: The 2019 Economic Forecast and Its Impact on Employment and Wages. Salary Budget Survey Data. Compensation costs increased 2.4%

Top Five Compensation Trends from 2016

Compensation Today

What trends have impacted compensation the most? In the spirit of the coming new year, let’s count the top five 2016 compensation trends! Count down the top #compensation trends of 2016! Gone are the days where companies compensate with just base pay.

Cafe Classic: To Innovate in Rewards, Get Outside the Rewards Profession

Compensation Cafe

There appears to be general agreement among reward professionals that the compensation approaches and protocols which have dominated practice for the last few decades are ripe for reinvention.

Study 60

What Employees Want: The Future of Compensation

Everwise

Not much new thinking has gone into the standard compensation package since the invention of the 401(k) plan , nearly 40 years ago. All other elements are considered a bonus.” . Interested in putting together a great compensation package for the future?

Plan Design Laid Bare!

Compensation Cafe

Most compensation practitioners can tick off the obvious ones on their fingers. Go back through Compensation Cafe archives and you find many articles on each of these plan design parameters. Title the first column, "The compensation plan will be considered successful if it achieves."

Variable Pay Is on the Rise: What the Data Show

Compensation Today

This is an excerpt from PayScale’s 2017 Compensation Best Practices Report. A rich compensation mix encompasses much more than just base pay alone. There are bonuses, incentives, benefits and much more. Frequency of Bonuses or Incentives 2017 vs. 2016.