Published: 01 May 2023
Eighty-one percent of organizations differentiate pay according to individual performance to drive higher performance, yet few actually guide their managers on how to do this. HR leaders can use this resource to benchmark their current approach to pay for performance against those of their peers.
81% of organizations have a pay-for-performance philosophy.
48% of organizations devote resources to pay differentiation analysis, but only 26% of organizations devote resources to performance analysis.
Half of organizations provide guidelines to their managers to enable pay differentiation decision making, but only 32% provide guidelines around how much differentiation managers should seek to achieve.
About half of organizations use a combination of senior leadership oversight in combination with pay differentiation analysis to ensure consistency and fairness in their pay-for-performance decisions.
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