Retention Strategies During Difficult Economic Conditions
Results from a Deloitte survey
Many companies are facing particular challenges retaining their valued employees. These companies are searching for ways to help their employees feel valued and motivated while still adhering to their existing compensation philosophies and principles. Deloitte Consulting LLP’s survey was designed to capture ways companies are approaching this problem.
This survey was conducted in September 2008 and closed at the end of the month. At that time, the market was down 25 percent year to date. The survey generated 151 responses from companies of all sizes in all industries.
Key findings of the survey include:
- 41 percent of companies expect their annual incentive plans to pay out at or above target, fully 59 percent expect a pay-out below target and 11 percent believe that their current annual incentive plan will not yield a bonus at all this year
- 40 percent of those surveyed said they have already implemented a retention program, one-third are taking a “wait and see” approach, and 27 percent said they currently have no plans to adopt a retention program
- 78 percent of survey respondents do not plan to change their current incentive plan and 53 percent of companies are planning to adjust next year’s annual incentive plans because of current economic conditions
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