HUB International Millennial Compensation and Performance Survey Reveals Traditional Practices Not Working
Pivotal components for success found missing in compensation and performance practices as uncovered in small and middle-market research study.
Feb 21, 2017, 13:00 ET
SAN DIEGO, Feb. 21, 2017 /PRNewswire/ -- Successful businesses understand their markets and their customers. The same cannot always be said about the people they employ to operate their company. Not understanding the millennial employee could have a devastating effect on a business. As the largest generation, millennials present a growing influence in the workplace. Understanding what motivates them is important for carrying that business success into the future.
Hub International Limited (HUB), a leading global insurance brokerage, recently conducted a research study: The Millennial Influence: The Essential Guide to Compensation and Performance Practices. A total of 330 millennials (18 to 34-year-olds) participated in the study. Those participating were full-time, white-collar professionals, employed with Southern California for-profit companies. The participants answered questions about compensation and performance practices for purposes of identifying which were most important to them.
Key Insights:
- Over 60% of respondents ranked competitive base pay as their number one factor for staying with their current employer. Over 80% ranked competitive base pay first, second, or third. Survey respondents ranked merit increases as least important.
- While competitive base pay was the top factor, 45% ranked career opportunity, interesting and challenging work, and incentive opportunity as first, second or third.
- Almost 50% of survey respondents expect to change jobs within the next six months due to a lack of competitive base pay, career opportunity or interesting work.
- Most survey respondents (92%) agree that competitive base pay and being paid for the value they bring to the company is important. The majority (90%) indicated that understanding how their job impacted the success of the company was very important (56%) or important (34%).
- 75% of respondents' incentive/bonus programs fail to use individual performance results in calculating payouts.
"When it comes to compensation and performance practices, understanding what's important to millennials is vital to a company's success. Transitioning from traditional to values-based compensation and performance practices helps attract and engage not only this generation but all generations of workers," said Tim Silvera, Vice President Ultimate Rewards Practice Leader, HUB International.
Download the HUB Millennial Survey to learn more.
MEDIA CONTACTS: Jordan Schill; [email protected]; 858-768-7309
SOURCE Hub International Limited