Employers are planning to spend more on their high performers in 2012, according to research by Mercer.
The poll of attendees at Mercer’s 2012 compensation planning in Europe, Middle East and Africa (EMEA) webinar, found that 44% of employers would spend more on their top performers compared to an average performer, than they had in previous years.
Half (50%) would spend the same amount, while 5% would spend less.
The poll also found that a two-tier approach to pay is emerging. When asked what percentage of their workforce they expect would not receive a pay rise on the basis of performance, 50% said 5%; 25% said between 6-10%; 12% said 25% or more; 8% said between 11-15%; and 4% said 16-24%.
Mark Quinn, partner, human capital at Mercer, said: “Decisions on base pay and variable pay will continue to become much more tightly bound to performance, both business and personal, in the years ahead.
“While organisations are funding some level of increases in base pay across all employee groups they are increasingly looking to differentially reward those whose immediate and long-term contributions are critical to their organisational success.
“Pay is increasingly being delineated into a fast and a slow lane, and this will become more acute.”
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