new survey by WorldatWork has found that only a small percentage of U.S. employers – 11 percent – are still giving out annual cost of living (COLA) pay increases to employees. “From a rewards perspective, it doesn’t make sense to base pay raises solely on the Consumer Price Index,” said Kerry Chou, compensation practice leader at WorldatWork, the global human resources association that focuses on compensation, benefits, work-life and integrated total rewards. “Pay raises are a tool to motivate and retain employees, Chou said in a press release accompanying the survey. “How motivating can it be for a top performer to receive the same base pay increase as a low or average performer?” Good question, and that cuts to the heart of the longstanding problem with cost of living raises: they don’t discriminate or reward workers based on performance. A hard-working top line performer gets the same pay increase as a weak player just doing them minimum to get by in an organization where COLAs are the name of the game. How motivating can that be for a top performer?
Posted on: Tue, 18 Nov 2014 02:27:26 +0000
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