The world's best performing companies pay 5% less in wages than average, new research by global managing consultancy Hay Group reveals today.
The world’s best performing companies pay 5% less in wages than average, new research by global management consultancy Hay Group reveals today.
Hay Group studied over 1,467 senior executives and directors in 358 global companies for the 2008 Fortune’s Most Admired Companies (MAC) list. MAC entrants have consistently outperformed the Standard & Poor’s index in terms of shareholder returns over five years, for example by over 11% in 2007. The study reveals how Most Admired Companies are more effective at maximising reward investments than poorer performing companies.
The Hay Group study finds that firms on the 2008 Fortune list manage reward more effectively, are better at retaining staff, and therefore have less need to recruit expensive outside talent.
Colin Evans, Associate Director of Reward Consulting at Hay Group commented: “Our research found that companies who make the MAC list haven’t just stumbled on the formula for making employee reward programmes work more effectively.
“A key differentiator between higher and lesser performing companies is the implementation of successful employee reward strategies.
“The best strategies excel at communicating benefits, optimising performance-related pay and ensuring that reward programmes are aligned with business priorities.”
Source of this article;
http://www.haygroup.com/uk/press/details.aspx?id=7237