2017 Rewards Decision-Making and Communications Report


Based on a global survey of 365 companies, Mercer’s Rewards Decision-Making and Communications Report delivers the latest insights on performance-based pay strategies around the world. This report features preliminary survey results that address the entire employee evaluation and rewards compensation process, including strategy, communication, challenges, and perception. Optimal for HR professionals and managers looking to find more value and efficiency through their workforce compensation program, this report shows the prevailing rewards-based compensation trends among some of the world’s leading organizations.

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As your company seeks a solution for tomorrow’s workforce challenges, Mercer’s Rewards Decision-Making and Communication Survey results point to the factors that companies use when evaluating employees’ effectiveness in the workplace and the trends sweeping rewards decision- making worldwide. They answer many relevant questions including:

How could a pay-for-performance compensation strategy impact my workforce?
• Your company’s compensation process can be about more than distributing pay checks. Consider how employees are motivated and encouraged by rewards at work, and investigate how companies around the world are prioritizing top-performers.

How should performance evaluation differ for employees at different career levels?
• Although a rewards-based compensation strategy can be effective for employees at every stage of their career, HR professionals should not use the same metrics to measure an executive and a para-professional. See what factors are most important when evaluating every career level.

How does the communication of rewards strategy impact the success of a pay-for-performance system?
• Introducing a tiered compensation strategy can be controversial if managers and HR professionals do not explain the factors used to evaluate performance and distribute pay. Read the report to learn how HR departments are balancing the need to drive performance while maintaining employee engagement.

Data collected through Mercer Select Intelligence’s survey on Rewards Decision-Making and Communications conducted in April & May 2017. A total of 365 survey submissions were received from companies across 40 countries.

Topics Covered

  • Employee Evaluation
  • Challenges of Employee Evaluation
  • Annual Salary Increase Cycle
  • Reward Decision-Making Communication
  • Perception of Rewards Decision-Making

Data Included

  • Average Weighting For Differentiation Factors — Base Salary Increase, Short-term Incentive Payout, Long-term Incentive Payout
  • Top Three Methods of Linking Pay to Performance in the Absence of Performance Ratings
  • Factors that Determine the Size of Salary Increase Budgets
  • Reward Decision Information Most Commonly Shared with Employees
  • How Companies Respond to Employee Queries on Competitive Compensation Practices
  • Training for Communicator of Reward Philosophy and Compensation Practices
  • Employee Satisfaction with Compensation

Career Levels

  • Executives
  • Management
  • Professional — Sales
  • Professional — Nonsales
  • Para-professionals



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