Money talks (remuneration)

Article Type: Abstracts From: Human Resource Management International Digest, Volume 18, Issue 3

Hansen F. Workforce Management (USA), 16 November 2009, Vol. 88 No 12, Start page: 27, No. of pages: 5

Reviews the trends in US salaries and bonuses. Considers advice from experts who argue that companies should unfreeze salaries as soon as the economic conditions allow them to do so and should begin to add merit increases. Highlights the possibility that failing to do this will reduce employee engagement and, consequently, reduce employee effort and the quality of their work. Summarizes research from Watson Wyatt that confirms this analysis. Looks at how firms should restore pay, discussing the merits of partial and full restoration. Quotes further research from Watson Wyatt that indicates that US firms are considering increases but advises that they should plan this carefully and be ready to react quickly if there is a market downturn. Lastly suggests that companies should use the opportunity to consider their pay policies and the practice of giving an annual pay increase. Article type: Viewpoint ISSN:1092-8332 Reference: 39AC233

Keywords: Merit pay, Remuneration, United States of America