GE may bid adieu to its annual pay raise
Thursday, September 1, 2016 12:35:14 PM

At present, executives at GE are involved in reviewing whether or not its yearly updates to the compensation would remain the best possible response to the accomplishments and requirements of its employees. Further, the company is likely to scrap its long-standing process of rating its employees on a scale of five points. The final decisions pertaining to both the issues are expected within the coming months, revealed by Valerie Van den Keybus, the company’s spokeswoman. With senior professionals preferring more flexibility just before their retirement, organizations are involved in competing over the young workforce. For this workforce, various perks are equally important as their salaries. Therefore, organizations are exploring various ways to attract and retain young professionals. Just 1.2 percent of organizations in the US are making use of a discretionary timescale in order to raise base pay, revealed by the 2016 compensation survey by Mercer LLC. With young workers likely to stay in their organizations for a short period of time, a year may be considered very long to wait. Therefore, Steve Gross, a senior partner at Mercer, said, “It’s more like employees are serving tours of duty and you need to get them to re-enlist and get them re-engaged.”

(Credits – Bloomberg )