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Retention Bonuses Continue To Be Out Of Favor As Ways To Retain Executives and Middle Managers |
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Sunday, 31 July 2005 |
BOSTON - Retention bonuses ranked at the bottom of ways that organizations are trying to retain both senior-level executives and middle managers in this improved job market - and they were near the bottom of preferred retention methods during the last hiring boom, according to ClearRock, an executive coaching and outplacement firm headquartered in Boston.
Only 12% of organizations reported using retention bonuses to try to retain senior-level executives during the past six months, and just 9% reported using retention bonuses to try to retain middle managers during the hiring recovery, in a survey of about 100 organizations by ClearRock.
"Retention bonuses continue to be out of favor due to problems with deciding which positions or departments qualify for them, and their inability to match better overall compensation packages that talented workers can receive from elsewhere," said Annie Stevens, managing partner for ClearRock. "The focus, instead, has been on improving compensation and benefit packages, rather than on one-time or short-term bonuses."
The top ways organizations are trying to retain SENIOR-LEVEL EXECUTIVES are: | Better compensation & benefits | (51%) |  | Flexible hours & schedules | (23%) | | Stock options | (37%) | | Profit-sharing | (16%) | | Coaching | (35%) | | Mentoring | (14%) | | Tuition reimbursement | (23%) | | Retention bonuses | (12%) |
The top ways organizations are trying to retain MIDDLE MANAGERS are:
| Better compensation & benefits | (43%) | | Stock options | (26%) | | Coaching | (34%) | | Mentoring | (22%) | | Flexible hours and schedules | (28%) | | Profit-sharing | (11%) | | Tuition reimbursement | (27%) | | Retention bonuses | (9%) |
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