A Case Study about Performance-Driven Compensation: The Corporate Talent Insurance Policy
Introduction: An average company’s biggest expense and biggest differentiator is its talent. As much as 70 percent of business expense is on people: hiring, salary, and benefits. Yet in the U.S. alone, the average churn of staff is a staggering 40 percent. More alarming: in 2009, half of that churn was voluntary—people deciding to leave their jobs to find something better.
As economic conditions improve and businesses worldwide look to regroup and even reinvent themselves, smart talent management has never been more crucial. Central to that strategy is managing risk through talent insurance policies that more accurately find and incent the best performers with differentiated compensation. More than 80 percent of companies around the world are offering variable-pay programs or performance-based awards that must be re-earned each year.
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