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Astron Solutions’ New Phone Numbers

Astron Solutions’ move is complete! We have made the transition to 8th Avenue and are enjoying our new location, which will allow us to better serve you.

Our phone installation continues to be a work in progress. But we do have a general number you can use to contact us: 212-792-8252. You can reach your consultant at the following extension:

John – 102
Eric – 103
Brendan – 104
Jennifer – 105
Mike – 106

You can send your faxes to 212-792-8256.

In our next issue of Astronology, we’ll provide you with our direct dial numbers.

2008 Merit Increase Budget Projections

It’s the time of year Total Rewards professionals greet with interest – the announcement of projected salary increase budgets for the coming year. Overall, projected salary increase budgets for 2008 approximate 2007 levels.

According to William M. Mercer’s research, merit increase budgets will be, on average, 3.8%. The budget amounts will range from a low of 3.6% for trades / production / service employees to a high of 3.9% for executives.

Research conducted by WorldatWork mirrors the Mercer findings. The average Cost of Living Adjustment (COLA) budget for 2008 is 2.9%. The average 2008 merit budget – aka the pay for performance budget – is 3.7%. 3.9% is the projected total increase budget for 2008. While most total increase budgets closely follow the 3.9% average, a few demographics have total increase budgets on the higher and lower ends of the spectrum:

Public Administration – 4.2%

Washington, D.C. – 4.1%

Organizations with 1 – 499 employees – 4.1%

Boston – 4.0%

San Francisco – 4.0%

Organizations with 20,000 or more employees – 3.7%.

With pay increase budgets at less than 4% on average, what’s an employer to do? Attracting and retaining good employees becomes ever more challenging with skilled worker shortages and very low unemployment rates. Organizations are placing more focus on attracting and retaining employees specializing in Information Technology, Finance and Administration, Human Resources, Marketing and Sales, Customer Service, Legal and Compliance, and Engineering. However, giving a stellar performer an extra 2% in his or her paycheck probably isn’t going to make a sufficient distinction between good solid performance and exceptional performance.

In the coming year, proactive employers will approach the thorny pay for performance question from several angles:

Cash can be an excellent motivation and recognition technique for many people. Individual and group incentives will continue to play an integral role in the total compensation equation.

Phased retirement and part-time work alternative plans ensure a sufficient transfer of knowledge from long service employees to up and coming stars. Such plans allow an organization to tap into an employee’s collected wisdom. At the same time, he / she enjoys continued income and benefits while having the flexibility to enjoy outside activities.

Offering benefits to part-time employees can attract skilled workers who seek the flexibility of work-life balance.

Changes to the performance management system can place a greater focus on talent. One emerging trend is the shift away from anniversary date annual reviews to fixed focal performance appraisals to facilitate more effective use of limited merit budgets. In addition, organizations are moving towards competency based reviews with employees’ goals linked directly to organizational goals. This direct linkage, when used as part of a fixed focal review period at the very start of an organization’s fiscal year, sends a strong message on how to excel while maintaining employees’ lines of sight.

While these are four major US trends in effectively rewarding employees outside of pay increases, each organization is different. You know your employees best. Talk with them, find out what makes them tick, and use those ideas to develop reward programs that complement your organization’s pay increase budget, no matter its size.

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Coming next time in Astronology

Astron Solutions’ New Phone Numbers

Addressing Political Activism in the Workplace

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ISSN Number 1549-0467