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Press Contact:
Marcia Rhodes, APR
Media Relations
WorldatWork
Phone: 202-315-5517 or 480-304-6885
E-mail: [email protected]
www.worldatWork.org
August 27, 2008
WorldatWork Survey Finds Telework on the Rise in the U.S., Canada
Analysis of Employee Retention Practices Shows Some Cross-Border Differences
August 27, 2008 — Washington, D.C. – Employers in both the United States and Canada deploy a similar mix of employee rewards programs to attract and retain talent in an ever-changing marketplace with diverse employee needs.
According to the 2008-2009 WorldatWork Salary Budget Survey, telework – among all surveyed total rewards programs – has shown the most significant 12-month increase in both countries. In contrast, the use of other employee rewards programs inched up only slightly in recent years, and a few even declined. See tables 1 and 2.
Telework grew considerably in the U.S., from 30 percent of organizations saying they offered it to employees in 2007 to 42 percent this year. In Canada, the increase was even more significant, from 25 percent to 40 percent.
“It’s been a perfect storm,” said Anne C. Ruddy, CCP, president of WorldatWork. “Rising gas prices, leading-edge technology, and the push for work-life flexibility have all come together in the past 12 months to create a pretty dramatic increase in telework across the U.S. and Canada.”
A comparison of rewards practices in the U.S. and Canada noted a number of similarities, as well as a few differences:
- Part-time employment with benefits: Offered by 38 percent of employers in Canada and 37 percent of employers in the U.S.
- Retention bonuses: Grew from 27 percent in 2004 to 38 percent in 2008 in the U.S. with similar growth in Canada
- Sign on/hiring bonuses: On the rise in both the U.S. (70 percent) and Canada (51 percent)
- Stock grant programs: Growing in both countries, though experiencing more rapid growth in the U.S. from seven percent in 2004 to 20 percent this year
- Stock option programs: Declining in both countries
- Spot bonuses: U.S. employers are more apt to pay spot bonuses: 45 percent compared to 34 percent of Canadian employers in 2008
- Pay rates: 31 percent of U.S. employers pay above market compared to 25 percent in Canada
- Merit increase budgets: 16 percent of Canadian organizations report larger merit increase budgets in 2008 compared to 9 percent in the U.S.
Table 1. Programs Used to Attract and Retain Employees in the U.S. |
|
|
2004
(n=2,308) |
2005
(n=2,286) |
2006
(n=2,251) |
2007
(n=2,136) |
2008
(n=2,288) |
Sign-on/hiring bonus |
61% |
64% |
69% |
70% |
70% |
Employee referral bonus |
63% |
63% |
65% |
66% |
69% |
Market adjustments/increase to base salary |
55% |
60% |
64% |
65% |
65% |
Flexible work schedules |
-- |
-- |
-- |
62% |
63% |
Flextime |
-- |
-- |
-- |
-- |
51% |
Compressed work week |
-- |
-- |
-- |
-- |
27% |
Telecommuting/telework |
-- |
-- |
-- |
30% |
42% |
Job sharing |
-- |
-- |
12% |
14% |
13% |
Spot bonus (individual) |
43% |
43% |
45% |
46% |
45% |
Retention/stay bonus |
27% |
30% |
35% |
38% |
38% |
Part-time employment with benefits |
-- |
-- |
28% |
32% |
37% |
Paying above market |
25% |
28% |
30% |
29% |
31% |
Stock option program |
27% |
25% |
24% |
23% |
22% |
Stock grant programs |
7% |
10% |
16% |
21% |
20% |
Project milestone/completion bonus |
16% |
17% |
18% |
21% |
18% |
Special cash bonus/group incentives |
17% |
19% |
20% |
20% |
19% |
Separate salary structures |
13% |
12% |
13% |
15% |
15% |
Exempt overtime pay or time off |
14% |
15% |
13% |
14% |
14% |
Larger merit increase budgets |
7% |
9% |
10% |
11% |
9% |
Phased retirement |
-- |
-- |
4% |
6% |
6% |
Paid sabbaticals |
3% |
3% |
2% |
3% |
3% |
Table 2. Programs Used to Attract and Retain Employees in Canada |
|
|
|
|
|
|
|
|
2004
(n=213) |
2005
(n=210) |
2006
(n=207) |
2007
(n=195) |
2008
(n=227) |
Market adjustments/increase to base salary |
58% |
56% |
65% |
64% |
66% |
Flexible work schedules |
* |
* |
* |
62% |
64% |
Flextime |
* |
* |
* |
* |
58% |
Compressed work week |
* |
* |
* |
* |
30% |
Telecommuting/telework |
* |
* |
* |
25% |
40% |
Job sharing |
* |
* |
12% |
17% |
19% |
Employee referral bonus |
46% |
47% |
48% |
51% |
61% |
Sign-on/hiring bonus |
44% |
44% |
51% |
50% |
51% |
Part-time employment with benefits |
* |
* |
34% |
32% |
38% |
Retention/stay bonus |
26% |
27% |
30% |
37% |
37% |
Spot bonus (individual) |
27% |
28% |
30% |
30% |
34% |
Paying above market |
28% |
35% |
30% |
31% |
25% |
Stock option program |
28% |
24% |
23% |
28% |
23% |
Project milestone/completion bonus |
17% |
20% |
23% |
42% |
23% |
Exempt overtime pay or time off |
19% |
21% |
20% |
18% |
19% |
Larger merit increase budgets |
5% |
9% |
12% |
16% |
16% |
Special cash bonus/group incentives |
13% |
14% |
16% |
17% |
14% |
Separate salary structures |
9% |
7% |
10% |
9% |
13% |
Stock grant programs |
8% |
5% |
9% |
13% |
13% |
Phased retirement |
* |
* |
6% |
8% |
8% |
Paid sabbaticals |
6% |
3% |
3% |
4% |
5% |
About the Survey:
Survey data was collected in April 2008 with a 3 percent margin of error. Survey respondents were WorldatWork members employed in the HR, compensation and benefits departments of mostly large North American companies. The WorldatWork Salary Budget Survey is the most comprehensive salary budget survey with more than 2,700 organizations representing 13.6 million North American employees.
About WorldatWork®
The Total Rewards Association
WorldatWork (www.worldatwork.org) is an association of human resource professionals from FORTUNE 500 and other leading organizations worldwide focused on attracting, motivating and retaining employees.
Founded in 1955, WorldatWork provides practitioners with training and education to effectively design and implement strategies and practices in total rewards, including compensation, benefits, work-life, recognition, and career development. With offices in Scottsdale, Arizona and Washington, D.C., WorldatWork supports its 30,000 members and professionals in 75 countries with thought leadership, publications, research and community. WorldatWork administers certification through the WorldatWork Society of Certified Professionals.
The WorldatWork group of registered marks includes: WorldatWork®, workspan®, Certified Compensation Professional or CCP®, Certified Benefits Professional® or CBP, Global Remuneration Professional or GRP®, Work-Life Certified Professional or WLCP®, WorldatWork Society of Certified Professionals®, and Alliance for Work-Life Progress® or AWLP®.
WorldatWork Journal, WorldatWork Press and Telework Advisory Group are part of the WorldatWork family.
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