As with our review of 2022 compensation budgeting in the last Astronology®, predictions on how variable compensation will unfold are challenging.
Current Economic Climate and Impact on 2022
2021 has been a year of surprises in administering employee compensation programs. Among the changes and challenges in 2021 are the following:
These factors have led many to rethink past and current compensation strategies as we move into 2022. According to SHRM, when planning for 2022:
Consider the future of the organization.
As we plan for 2021, we need to consider COVID-19’s impact on 2020 compensation decisions for nonprofit executives. For the most part, nonprofit executive compensation came to a halt.
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.
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.
Many employees have spent close to two months (to date) staying at home in order to “flatten the curve” of COVID-19.
Coronavirus. COVID-19. These two words have been increasingly on our minds and in conversations daily. At this point, most of the world has been affected by the current coronavirus strain, COVID-19.
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 design and implementation of variable compensation programs continue to grow throughout 2019 and it appears that this trend will continue into 2020.
Accurate, relevant, and timely wage survey results help tremendously when effectively benchmarking your organization’s compensation structure. For many organizations, the task of participating in (or even sponsoring) a salary survey is tedious, and often time consuming.