There is no doubt that 2020 has been a year for the record books. When it comes to forecasting compensation trends for 2020 and 2021, there have been challenges.
Compensation budget planning
All business has its challenges. Due to their close-knit nature, family-owned businesses have unique challenges. Since employees are often related to each other, developing and maintaining fair & appropriate compensation plans can be difficult.
2019 has seen more activity by not-for-profit Boards than in past years. Increased concerns regarding the apparent high level of executive total compensation relative to the mission of the not-for-profit, as well as greater publication of not-for-profit executive compensation levels, have put pressure on Boards and their compensation committees.
The world of non-profit compensation continues to see radical changes from the past. Previously, it was assumed that non-profits, due to the limitations placed on their abilities to generate revenue, were in the position of compensating their employees much below the market.
Astron Solutions has been tracking the increase in organizations instituting short- and long-term incentive plans among our client organizations over the past year.
An important part of compensation administration is the salary structure. According to Compensation Programs and Practices 2015, 87 percent of organizations have a formal salary structure in place.