Increase Benefits or Increase Compensation? Latest Research From Workscape Examines How Employers Are Managing Post-Recessionary Total Rewards

While an Overwhelming Number of Employers Acknowledge Health Benefits Are Important to Employees, More Are Apt to Consider Pay Increases

MARLBOROUGH, MA--(Marketwire - May 17, 2010) -  Workscape, Inc., a leading provider of integrated HR solutions and services, revealed recent findings from a primary research study titled "Managing Employees and Total Rewards During the Economic Upswing" at this week's WorldatWork Total Rewards 2010 Conference in Dallas.

Conducted at the end of March 2010, 519 HR decision-makers and practitioners answered 20 questions regarding timely topics such as post-recessionary employee flight risk. Among the possible compensation incentives planned to retain and engage employees, merit increases (66%), performance-based bonus (52%), market/equity adjustment (24%), stock allocation (14%) and lump sum payment (12%) were cited. In contrast, 64% of respondents said their organization had no plans to offer a richer benefits package, despite 71% stating that health insurance was the one "reward" that they thought employees couldn't "live without." When asked about the effects of the new healthcare legislation on employee benefits, 100% indicated concern.

Some of the other findings include:

  • Respondents were cautiously optimistic about an economic recovery in 2010. While more than a third expected to experience business expansion within six months, the majority believe they will need to wait longer. A full 25% expect business to remain stagnant for at least another year; this is especially true of large organizations in the 5,000 - 10,000 employee range of whom, 40% expect business growth to be more than a year away.
  • To stem attrition, 82% of respondents plan to increase manager/employee communications during the recovery.
  • Technology sector respondents expressed the greatest optimism, with half anticipating business growth within the next six months and almost 80% within the next nine months.

David Turetsky, Workscape's Director of Total Rewards Strategy, commented, "An interesting contrast has emerged in our latest total rewards research. Companies recognize the importance of retaining valued employees but are more likely to incentivize employees with more money rather than more benefits. And while salary increases were at the top of the retention strategies, offering flexible work schedules and implementing greater employee/management communications are also being considered."

He continued, "Total rewards management means managing an employee's 'total relationship value.' This includes pay, increases, short and long-term incentives, benefits as well as corporate culture, mission, opportunities for growth and other environmental factors. As competition once again intensifies for qualified talent, employers need to take a comprehensive view of employee rewards."

A complimentary white paper detailing the findings from Workscape's research can be downloaded from

About Workscape

Proven experts in employee performance, compensation and benefits administration, Workscape is the only company with domain proficiency and extensive experience across these three vital pillars of human resources. The blend of Workscape's Total Rewards Platform™ and services helps clients solve complex HR challenges such as pay for performance, compensation planning, and benefits eligibility and enrollment. For more than a decade, Workscape has delivered the software and services that enable organizations to drive predictable outcomes through engaged, top performing workforces. For more information about Workscape, visit, follow or call 888-605-9620.