Employers appear to be loosening their purse strings as they shift their focus from cost control to rewarding top performers. Fifty-three percent of respondents in Xerox (NYSE: XRX) HR Services’ 2017 Compensation Planning Survey report that their highest priority in the coming year is to retain top talent.
The tenth annual survey found that while pay raises are expected to remain at three percent, consistent since 2012, nearly all survey participants who plan to offer lump sum payments in 2017 will do so to reward employees who have reached or are above their pay range maximums. In addition, 37 percent of employers intend to determine market pay adjustments for high potential employees.
“Attracting and retaining top talent is increasingly critical, and organizations need to continue – or start – finding creative ways to do so,” said John Gentry, president, Xerox HR Services. “These findings reflect a sign of optimism among employers as they shift gears from controlling costs to engagement.”
Over half (54 percent) of employers surveyed anticipate normal hiring in 2017.
Pay Communication Philosophy
Respondents showed enthusiasm when it comes to compensation communications with employees:
- 64 percent share their compensation philosophy and strategy.
- 69 percent communicate the value of total rewards.
- 59 percent provide updates on results related to organizational performance and the potential impact on pay.
Employers are least likely to share the full pay structure for jobs within the same class or group, or possible pay increases associated with particular levels of performance or steps within a pay structure, with employees.
“Organizations are acknowledging employees’ desire for more transparency around total rewards,” said Gentry. “Providing information on compensation philosophy and strategy, as well as business results, helps employees understand the effect on their pay and the value or their contributions to the organization.”
Xerox HR Services helps employers improve their HR programs through advisory, technology, and administrative services while enabling employees to better manage their health and wealth programs as well as their career development.
About the Survey
The Xerox HR Services Compensation Planning for 2017 collected data on pay increases, pay-for-performance patterns, short-term incentive plans, and attraction and retention programs from 172 organizations in the U.S. The survey was completed in October, 2016. The full results are available at no cost to the media by contacting David Joslin at David.Joslin@xerox.com or +1-585-754-2978. It is available to other interested parties for $530.00 by calling +1 800.887.0509 or visiting www.bucksurveys.com.
Xerox is helping change the way the world works. By applying our expertise in imaging, business process, analytics, automation and user-centric insights, we engineer the flow of work to provide greater productivity, efficiency and personalization. Our employees create meaningful innovations and provide business process services, printing equipment, software and solutions that make a real difference for our clients and their customers in 180 countries. On January 29, 2016, Xerox announced its plans to separate into two independent, publicly traded companies – Xerox Corporation, which will be comprised of the company’s Document Technology and Document Outsourcing businesses, and Conduent Incorporated, a business process services company.