Sunday, November 4, 2007

Compensation as a strategic move to reduce turnover for HR professionals!

"Organizations have lost nearly 30 percent of their human capital in the past two years" (2007 SHRM Human Capital Benchmarking study).

High turnover and the need to fill positions quickly is making HR operations even more challenging. One way organizations are trying to control is by having a strategic compensation through incentive system beyond base pay for HR professionals. The variable pay is tied to performance through short-term incentives (STI) in the form of cash bonuses for increased/improved productivity and long-term incentives (LTI) in the form of varied stock options.

The use of LTI's is spreading from the top specifically for HR executives whereas STI's are used more frequently than LTI's for variable pay for HR executives as well as HR managers.

Source: HR Magazine (Nov. 2007)

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