"Rewards and Performance Management Challenges: Linking People
and Results"
No author cited
Towers Perrin, April 2004.
Available Online
According to this Towers Perrin survey, in spite of cost pressures, rewarding
and retaining talent remains at the top of most HR department’s agendas
and will for at least the next three years.
The study detailed the reward program best practices of top-performing
companies. A total of 1,294 firms in North America, Europe, Asia and Latin
America participated in the study. Towers Perrin defined high-performance
companies as those with 3 year total shareholder return and/or earnings
growth that exceeds the median of their global industry groups. The study
found that high-performing companies:
- Segmented the workforce by key company functions and high performers.
- Integrated their rewards programs into the company’s overall system.
- Understood the cost and value of each incentive.
- Struck a balance between fixed and variable rewards.
Finally, and perhaps most importantly, they effectively communicated how
their reward systems worked to managers and front-line employees.
The survey also found that many companies are turning to non-monetary or
job-enrichment incentives, such as promotions, training/development opportunities,
stretch assignments/special projects and recognition programs.
