Posted: Monday, 09 September 2013 4:46AM
If this trend continues, the way you get paid may change
Forget about looking for a raise from you employer as your biggest concern now that more companies are completely changing how the pay structure works.
A study from human resource consultants Aon Hewitt shows the amount of companies with a variable pay plan has doubled in the last 20 years. That means all or some of the worker's pay is tied to the employer's performance.
"Basically everyone would have an absolute incentive to make sure the company would perform financially as well as it could," says Tulane Business Professor Mark Rosa. American companies are in a global economy now he says and their facing a lot of competition.
Some years employees can do well with variable plans, but some worker advocates complain they put too much of the risk on the workers.
Even though the amount of employers using these plans has doubled the last two decades, it's still only about 12% of the workforce according Aon Hewitt, but the dollar amount involved in salaries has quadruped in the last twenty years.
Rosa says it's part of a trend that includes workers having to take more financial responsibility for their own health care, and losing other benefits. And due to more government regulations, he says companies are making efforts to keep employees part-time too.
"I think people are more self-employed than they want to think," Rosa says, "But they are."
Click here for more info on the study of variable pay plans.