Raises Out; Bonuses In

November 7th, 2012 by JBWK

The Washington Post takes an interesting look at how people are being paid. The upshot: fewer raises, more bonuses.

A record high 82% of employers report using some form of performance-based compensation this year to reward their employees. That compensation can take the form of equity or cash bonuses based on the company’s specific needs.

And employers are becoming more selective: the across-the-board bonus is going by the wayside to support retention of individual key talent. Giving employers the flexibility to engage high-performers with enticing bonuses makes sure those stars don’t leave for the company’s competitors.

All this is coming at the cost of slow-but-steady salary raises, which employers have to pay regardless of performance of company financial health.


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