What’s in store for the rest of 2010?
If 2010 is off to a stronger start, you must prepare for the possibility that your executives may be exploring job opportunities outside of your company.
Statistics indicate that 50 to 60 percent of executives are determined to make a move once they feel the economy has rebounded. Many executives worked harder for less money in 2009 and feel they now deserve to be repositioned financially to compensate for their sacrifices.
Companies risk losing top performers to their competition. Remember, there has never been a better time to attract and upgrade your work force.
Even many of those currently employed might be contemplating making a career move.
What can companies do right now to retain and incentivize their executives?
First and foremost, companies should identify their top performers; i.e., who can you not live without? Then determine what the marketplace is paying for those same positions in other companies. Identify companies of similar revenue and employee count and determine where you stand as it relates to that benchmark.
If your company is paying below the mean, you should seriously consider increasing cash compensation. If you are paying what the market dictates, the business leaders need to communicate this fact to their executives. Many companies are thinking outside the box as it relates to total compensation for 2010.
Total cash compensation remained either status quo or decreased for many executives in 2009. As a result, to retain executives, companies are doing other things, such as offering an extra week of vacation, paying more of the executives’ health benefits, or providing spontaneous spot bonuses to reward solid performance and production.
Companies should continue to be creative and offer noncompensation perks. Offering in-house classes, training or other forms of career development is another way to give back and invest in your top-performing executives.
Successful companies in 2010 will be those that continue to be proactive in involving their work force and creating strong team work and leadership.
Tyler Ridgeway is a director at Kreischer Miller and leader of the Human Capital Resources and Executive Search practice. Reach him at (215) 441-4600 x175 or [email protected].
