Short-Term Incentives Are Playing Larger Retention Role

Stephen Miller
Echoing the results of other recent surveys, pay raises for U.S. employees are expected to hold steady in 2016 at about 3 percent, according to findings released in August 2015 by consultancy Towers Watson. In this environment, bonuses and other types of short-term incentives are playing a larger role in encouraging employee retention, but they can't carry that burden alone; companies need to provide an overall value proposition that’s effectively communicated.

A preview of results from Towers Watson’s 2015 General Industry Salary Budget Survey—U.S., conducted between May and July 2015 with responses from more than 1,100 U.S. companies, shows that employers continue to reward their best performers with significantly larger pay raises as they look for ways to retain top-performing talent in a tightening labor market.

Virtually all respondents (98 percent) are planning to give employees raises next year. The number of companies that are giving raises has risen steadily since the recession in 2008.
View Count 676