HR Insights


Is Company Performance Connected to Employee Compensation and Transparency?

Posted by Wendy White on May 3, 2016

Is Company Performance Connected to Employee Compensation and Transparency? | Wendy White | HR Insights blog by CareATC, Inc.In a large survey by Payscale, companies that exceeded revenue expectations tended to pay their employees more. The correllation was strong, using data from more than 7,500 companies all over the world.

In 2015, about 90% of "top performing" companies gave pay raises. Of survey respondents, more than 1/3 of raise-givers increased compensation to between 96% and 100% of employees. 81% of top performers have bonuses.

And while these numbers may dazzle, it's not always well understood where success comes from; more simply, do raises cause success, or does success create the profits from which raises can be awarded?

The numbers tend to indicate the former. The survey measured companies by many factors, including many ways in which a company might act on employee value. Of the high-performing companies that measured near the top on employee valuation, high compensation, benefits, and bonuses tended to follow.

Read full article at Forbes.

Photo credit: Ben Saren via Foter / CC BY-NC-ND


Wendy White

About The Author

Wendy White

As the Director of Client and Clinical Services at CareATC, Wendy manages the implementation and ongoing success of our clients' clinic programs. She is also a resident expert on all things CareATC, having been with the company for over 10 years.

Post Topics Benefits & Compensation