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Prevalence of Alternative Pay Strategies

Are companies using broadbanding? Hiring bonuses? Retention bonuses? Results of a 2000 study, which examined the Web site operations of companies of all industries.

September 24, 2000
B

uckConsultants surveyed 233 employers in eight industries -- business services,communications, financial services, pure Internet, manufacturing, publishing,wholesale/retail, and utility/transportation. Buck just examined the Internetoperations of the companies.

Thesurvey shows that the majority (69%) of companies are using hiring bonuses aspart of their total compensation packages for their employees. Team-based payand gainsharing are the least prevalent of the alternative pay strategies. 

 Belowis a chart of the results.

 

PREVALENCEOF ALTERNATIVE  PAYSTRATEGIES

 

NumberofCompaniesResponding

 

 

Using

 

 

Implementing

 

 

Considering

 

NotConsidering

Broad-basedStock Options

193

41%

3%

8%

49%

Broadbanding

183

22%

2%

15%

61%

Competency-basedPay

176

20%

3%

20%

56%

Gainsharing

171

9%

1%

5%

85%

GroupIncentives

173

17%

1%

21%

61%

HiringBonuses

201

69%

1%

9%

21%

RetentionBonuses

185

35%

1%

16%

49%

Skill-basedPay

177

20%

2%

15%

63%

Team-basedPay

173

3%

0%

16%

80%

ProjectCompletion Bonuses

183

31%

1%

24%

44%

SOURCE:Buck Consultants 2000 Web site Compensation Survey.