Variable Pay: Is There a Difference Between a Bonus and an Incentive?

Compensation Today

PayScale’s 2017 Compensation Best Practices Report (CBPR) revealed that nearly three-quarters of organizations give some type of variable pay. Is there a difference between a bonus and an incentive? Under the umbrella you can find any number of bonuses, incentives, commissions, and other cash comp that is contingent on something happening. Bonus” falls under the umbrella. Incentive” also falls under the umbrella. Choosing Incentives or Bonuses.

10 Employee Incentive Programs to Engage Your Team

Achievers - Recruiting

Incentives give employees something to strive for and provide tangible acknowledgement of their great work. When an incentive is offered, 85 percent of workers feel more motivated to do their best. What are employee incentive programs? The value of employee incentive programs.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Another New Year- Time to Think About Bonuses

Affinity HR Group

With 2019 over and at the dawn of a new decade, it’s an ideal time to think about bonuses for 2020. Organizations of all sizes and across all industries use bonus programs as an important component of total compensation. There are many different types of bonus programs.

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. But what makes a good incentive plan? Below, the five elements of a good incentive plan. Are Incentives the Same Thing as Bonuses?

SHRM 2017: Mykkah Herner and Pay Incentives

HR Daily Advisor

Today I attended a session by Mykkah Herner, the Compensation Evangelist at Payscale, entitled Effective Incentive Plan Design. The focus of his talk was on variable pay plans and how they fit into an overall pay incentives strategy. Before long, however, it was time to get down to the business of designing an incentive pay plan. And those concepts include bonuses, commissions, retention bonuses, project bonuses, etc.

PayScale Tools for Today's Comp Pro! Compensation Glossary: Part 1 of 4

Compensation Today

Jenni Marquez, CCP, PayScale Compensation Professional Even the most seasoned HR professional might take a big gulp if approached by their CEO to take charge of anything comp. PayScale has you covered in our new, 4-part Comp Glossary. Today’s Lesson: A Little Comp 101 Consider the comp pros at PayScale to be an extension of your team! Typical variable pay includes incentives, bonuses, commission, and profit-sharing.

Bonuses Remain the Top Priority for Raising Compensation

Compensation Today

Taylor, PHR, SHRM-CP, PayScale Senior Blogger Recently, I wrote about the sluggish state of the US economy and its impact on wages for the third quarter of 2015. While companies may not be raising salaries as progressively as desired, they are turning to other means to increase the compensation for their most-deserving employees by offering bonuses. Are employee bonuses the new compensation strategy? Will more employers offer bonuses? Tess C.

Want More Employee Referrals? Larger Referral Bonuses Might Not Be the Answer

Avature

In an effort to promote referrals, the majority of organizations offer related bonuses that can be anywhere between $1,000 and $5,000 for successful placements. Some, in the place of money, offer other incentives such as extra vacation days, day trips and expensive gifts.

Want More Employee Referrals? Larger Referral Bonuses Might Not Be the Answer

Avature

In an effort to promote referrals, the majority of organizations offer related bonuses that can be anywhere between $1,000 and $5,000 for successful placements. Some, in the place of money, offer other incentives such as extra vacation days, day trips and expensive gifts.

How to Make Headway on Pay Transparency

Compensation Cafe

Employees gather statistics-lite data from sites like Payscale, Glassdoor and Quora and treat it as equivalent to any data you may offer. Base Salaries Compensation Communication Compensation Philosophy Incentives/Bonuses Pay for Performance

Want to upgrade compensation best practices? Then Take Our Survey!  

Compensation Today

PayScale invited more than 250,000 professionals and business executives to participate in our 2017 Compensation Best Practices Report (CBPR) survey. More than a quarter of organizations surveyed give team incentive bonuses. PayScale CBPR 2017 compensation Compensation best practices future of compFrom the results of this survey we will produce the 2017 CBPR and reveal critical compensation trends that will help you upgrade your profession.

Compensation Cafe: Chasing Best Practices

RecognizeThis!

A recent report from PayScale, which I covered in this post on Compensation Cafe , helps to provide some useful data around compensation practices, particularly among top-performing and average companies. Here’s what they found in their research: It turns out that high performers are more likely to provide pay increases (90% compared to 84%), bonuses (81% compared to 74%), and are also likely to leverage more of a compensation mix. By Derek Irvine. Recognize This!

Variable Pay Is on the Rise: What the Data Show

Compensation Today

This is an excerpt from PayScale’s 2017 Compensation Best Practices Report. There are bonuses, incentives, benefits and much more. Why not offer spot bonuses for individuals who show strong examples of the company’s core values? If an organization values collaboration, why not give a bonus to the individual who stayed late helping a coworker finish a project? Frequency of Bonuses or Incentives 2017 vs. 2016. Bonus Type by Organization Size.

The First Step Towards Pay Transparency

Compensation Cafe

They can see the difference (because you have explained it to them) between your pay data and the data on sites like PayScale. If you offer incentives, payment is based on communicated measures not management discretion. Base Salaries Compensation Communication Compensation Philosophy Incentives/Bonuses SurveysEarlier this month I mentioned that I'd write a series on three steps that can get you started on pay transparency. Determine your mindset (a.k.a.

Companies Use Pay Alternatives to Keep Employees Around

Compensation Today

Taylor, CPC, PHR, SHRM-CP, PayScale Senior Blogger It always seems as if one company tries to be progressive in terms of it’s compensation strategy, it shakes things up for the rest of the business world. This comes on the heels of somewhat stagnant growth and the company’s efforts to retain key employees with generous bonuses. Non-salary incentives – the future of comp? The question that’s on many people’s minds is “Are non-salary incentives the wave of the future?”

2020 Workforce Trends- What You Need to Know!

Affinity HR Group

An increasing number of organizations use bonus programs as a retention tool. A 2019 Payscale survey reported that 73% of respondents used some type of bonus or variable pay program. Consider developing a bonus program(s) for 2020 with an anticipated 2021 payout date.

Want a Better Culture? Set Compensation Strategy Accordingly

Compensation Today

At PayScale, we think the way you pay says a lot about you as an organization. In PayScale’s 2017 Compensation Best Practices Report (CBPR), we found that 57 percent of organizations agree that compensation is becoming more important to their executives. When these same organizations turn around and give raises annually, or even give bonuses annually, their compensation is inconsistent with their culture. Organizational culture matters more now than ever.

Cash is Still King When it Comes to Compensating and Engaging Workers

Compensation Today

Taylor, CPC, PHR, SHRM-CP, PayScale Senior Blogger When I wrote Golden Carrots Don’t Produce Employee Engagement last year, little did I know just how much this would ring true for 2016. At that time, employers were just beginning to wake up to the critical nature of employee engagement, spending close to $720 million in programs and incentives. Compensation is more than just developing incentive plans and giving people small annual raises. Tess C.

Pay the Friendly Way: United Airlines Ties Executive Compensation to Customer Satisfaction

Compensation Today

In the 2017 Compensation Best Practices Report , PayScale shared that most companies do link compensation to performance. And 64 percent of organizations recognize high-performing employees with bonus or incentive (either goal-based or without a formal plan). PayScale’s 2017 Compensation Best Practices Report revealed that 71 percent of organizations either have or are developing a compensation strategy.

7 Tips for Moving to a Pay-for-Performance Culture

Compensation Today

In the 2017 Compensation Best Practices Report , PayScale found that 89 percent of organizations reward and/or recognize performance in some way. In the 2017 Compensation Best Practices Report, PayScale found that 89 percent of organizations reward and/or recognize performance in some way. At PayScale, we believe that your pay brand, the how and why decisions in your compensation plan, should both reinforce your culture and help accomplish business objectives.

Compensation Round-Up: JLaw’s Gender Wage Gap, Transparency, and RIP Annual Raises

Compensation Today

Joleen Oerman, B2B Content Marketing Specialist, PayScale Welcome to the Compensation Roundup, where we bring to you the hottest news in comp! The consulting firm Towers Watson, found that for the 5th year in a row, the employee bonus pool will look like an abandoned hotel pool—drained and neglected. The death of the annual raise and the rise of the bonus. PayScale found that the majority—two thirds of people that are paid at or above market rate—think that they’re underpaid!

Top Five Compensation Trends from 2016

Compensation Today

Going are the days where companies stop at giving discretionary bonuses that are unlinked to performance. That includes using team-based incentives to drive collaboration, providing creative perks , and offering performance-based incentives across the organization from executives to individual contributors. In PayScale’s 2016 Compensation Best Practices Report we found that 47% of top-performing companies are transparent about pay, vs 40% of all companies.

Modern Comp Practices for Traditional Companies

Compensation Today

By Kari Van Hoof, CCP, PayScale Compensation Professional At PayScale, we strive to help all kinds of organizations embrace modern compensation practices to engage their workforce and drive results. Last year, PayScale surveyed 71,000 employees and found that satisfaction is very closely linked to employer transparency about their pay practices. Kari Van Hoof, CCP, is a Compensation Professional at PayScale.

Chasing Best Practices

Compensation Cafe

Research from the firm PayScale may help to answer at least some of those questions, with their annual analysis of compensation trends and activity. It turns out that high performers are more likely to provide pay increases (90% compared to 84%), bonuses (81% compared to 74%), and are also likely to leverage more of a compensation mix.

Do Job Analysis and Evaluation Still Apply in Today’s World

New to HR

But hierarchies also tend to organise the working environment by rank, with the higher levels of management separated from the workface not only by grade and payscale, but by distance, reducing effective co-operation. Companies not only save money by employing less managers, they can also be more creative with pay structures, choosing to implement more incentives and performance-related bonuses.

Seasonal Hiring Steady for 2015 Holiday Season, but is Pay Spiraling Downward?

Compensation Today

Taylor, PHR, SHRM-CP, PayScale Senior Blogger This time of year always sees an increase in hiring additional people to cover the busy holiday season, at least on a temporary basis. To offset low wages, employers often turn to seasonal worker incentives and bonus programs based on worker performance. Tess C.

Meeting Your Employees Where They Are When It Comes to Pay Transparency

Compensation Today

Among discussion of customer success best practices and trends, there were also deep-dive sessions on customer education and training — my personal area of interest as the Manager of Customer Education here at PayScale. What is the pay schedule and when are bonuses or incentives measured and paid out? What other benefits and non-cash incentives make up the company’s compensation plan?

The Four Times You Should Be Talking About Compensation Throughout the Year

Compensation Today

We’ve written a lot at PayScale about compensation communication — especially about WHY talking about compensation is important, and WHO should be talking about pay. – Explain the details of any bonus, incentive or variable pay plan including eligibility, measurement and payout. One of the things we haven’t covered as much is WHEN you should talk about comp.

3 Practical Tips to Prepare for Salary Planning

HRsoft

According to an article in Employee Benefit News , companies can benefit from pulling data from a range of sources, such as crowd-sourced pay data from tools like PayScale as well as other outside surveys. To that end, it’s important to maintain a balanced total rewards program that factors in both incentive compensation and intrinsic motivators, such as career development opportunities.

Employee Rewards: From Most Popular to Most Creative

Compensation Today

In PayScale’s 2017 Compensation Best Practices survey, we asked employers what their workers’ favorite benefits and perks are. Other popular perks were bonuses, 401K options, pensions and modified schedules like Summer Fridays programs. Do you have room to offer more or higher bonuses (or better yet, incentives)? Today’s employees have some unique advantages that employees of the past didn’t have. For one thing, the U.S.

Why Referrals Might Be Hurting Your Diversity Efforts (and What You Can Do to Change That)

Linkedin Talent Blog

A recent report from PayScale shows that job referrals can bring more engaged employees into your company, but tend to benefit white men a lot more than women or people of color. Here’s what PayScale’s report reveals about the diversity problem with job referrals—and a few ways that you can make your referral scheme support, rather than hinder, your company’s diversity efforts. Referrals by the numbers: A closer look at Payscale’s findings.

5 Steps to Creating An Effective Employee Compensation Strategy

Career Metis

It incorporates several other factors such as incentives, medical benefits, and much more. This budget should create a borderline on how much of the compensation budget should be invested in salary, bonuses, and other benefits. Source – DepositPhotos.com.

What is a total compensation statement & how does it provide value?

Genesis HR Solutions

This includes gross wages and extra financial compensation, such as bonuses or commissions, as well as the employer-paid portion of retirement plan contributions, insurance premiums, and paid time off benefits. Bonuses. Commission/bonuses/incentive pay. Though your benefits package may be quite substantial, your employees may not know or understand the real value of the benefits you offer.

How to Negotiate Your Salary and the Job – Definitive Guide

GetFive

Then give them a range that’s as wide as possible, noting it is dependent on various factors (like bonuses and perks). PayScale and Glassdoor. If you aren’t sure where to start, check Glassdoor and PayScale. Bonus pay. Incentive compensation (short- and long-term).

How to Negotiate Your Salary and the Job – Definitive Guide

GetFive

Then give them a range that’s as wide as possible, noting it is dependent on various factors (like bonuses and perks). Start by researching online on employment websites like PayScale and Glassdoor. If you aren’t sure where to start, check Glassdoor and PayScale. Bonus pay.

Total Reward Statements—Show Employees You’re Invested in Them

HR Daily Advisor

Help is available in the free white paper from PayScale, Attack of the Out-of-Date Comp Plan. This includes base salary, overtime, bonuses, incentives, and commissions. In tomorrow’s Advisor , Rubino presents ways to communicate total reward statements to employees, plus an introduction to PayScale’s 2015 compensation best practices report, Attack of the Out-of-Date Comp Plan. A valued employee is a retained employee.

Lessons from Gravity: Murphy’s Law of Compensation

Compensation Today

According to PayScale’s 2015 Compensation Best Practices Report , nearly 21 percent of employers expect to increase the minimum wage as part of their compensation strategy for 2015. However, one thing that most will agree on is that even equitable pay systems must also be accompanied by different reward and incentive programs that motivate low performers and promote a sense of fairness among top performing employees.