PayScale has released their 2012 Compensation Best Practices Report. The data, collected in November and December of 2011, covers multiple industries including healthcare, finance and insurance. The report provides information on compensation practices, hiring practices and social media.
The report reveals a significant improvement for both employers and employees. Of particular note is that there continues to be an upward trend in hiring practices with more organizations increasing their size than in either 2009 or 2010. Additionally, fewer companies are terminating employees and are instead maintaining their existing workforce or adding new talent.
Finance & insurance industries were 60% more likely to maintain their existing employee levels with healthcare at 59%. Industries anticipating increases in organization size over 2011 were media & telecommunications (57%) with transportation & warehousing/storage at 55%.
The principal reason why companies adjusted compensation was "Performance-Based Pay Increases (69%). Just under 49% indicated "Employee Promotions" as a driver for compensation adjustments.
In 2011 the base salary adjustments ranged from a decrease of 10% to an increase of 15% depending on the industry.
Pay range adjustments in 2011 held at 66% compared to only 25% of respondents in 2010. The average adjustment was approximately 5%, slightly up from an average of 4% in 2010.
The most important compensation objective guiding the respondents' 2011 decisions was "Retaining Top Employees," which was chosen by 54% of the respondents. This was true across all company sizes and industries. Retaining and attracting quality workers are still the two chief compensation objectives for 2012 regardless of company size and industry.
Mining, oil & gas exploration is the industry with the greatest concern for employee retention in 2012: 81% of respondents in this industry feel employee retention is a high or top concern in 2012. The industry with the least concern is Real Estate & Rental Services. 21% of respondents in this industry feel employee retention is of little to no concern for 2012.
Survey responses in the area of Social Media reflected that 53% of respondents have a formal policy on the use of social media. Where companies have official policies, only 29% encourage the use of social media at work, while 42% say the use of social media is not allowed at all. The larger the company, the less likely it has a formal social media policy in place: 57% of small companies have a formal social media policy, compared to 52% of medium companies and 47% of large companies.
In closing, employers and employees face 2012 with greater optimism. Companies will continue to focus on increasing their workforces and increasing employee wages. Employee retention will continue to be a concern as the economy improves and workers consider other options.
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