A recent study suggests that business owners have implemented a more formal way of conducting employee benefit plan administration.
The report, "Compensation Programs and Practices 2012," was conducted by WorldatWork, and found that formalized compensation programs have become more common, even among small business owners. The differences were particularly stark when contrasted with 2003.
Kerry Chou, a certified compensation professional and practice leader for the human resources organization, indicated that business owners may be changing styles because its more cost efficient.
"For a vast majority of organizations, employee compensation is one of the largest operational expenses and the most difficult to manage," said Chou. "We expect to see more compensation professionals applying discipline and rigor to the design and management of pay programs to ensure business objectives are met."
The report also revealed that the overwhelming majority of employers – 99 percent – have a human resource system that charts how employees are doing through a formal employee performance framework.
