Despite embracing the concept of pay-for-performance, a surprisingly large number of North American employers say their pay-for-performance programs are not doing what they are designed to do—drive and reward individual performance—according to a new survey released by Willis Towers Watson.
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The survey results come at a time when a majority of companies are fully engaged in their annual performance review and pay decision cycles.
“Employers continue to make significant investments of time and money in their traditional pay-for-performance programs, primarily annual merit-pay increases and annual incentives,” said Laura Sejen, global practice leader, Rewards at Willis Towers Watson.
“Unfortunately, these reward programs are falling short in the eyes of many employers. It appears that organizations are either trapped in a business-as-usual approach or suffer from a me-too mentality when it comes to their programs.”