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Dear All,
Compensation provides the bedrock on which th foundation of motivation and performance is based. The quality of people an organization retains is determined by a lot of factors and every survey and every benchmarking study has proven the fact that - Compensation plays a major role in a prospective employees to continue or quit. Please follow the link below to download the Compensation Benchmarking done by ipma - hr. I have downloaded the pdf.file and attached with this post for your convinience. <link updated to site home>
Warm regards,

From India

Attached Files
File Type: pdf compensation_benchmarking_396.pdf (366.9 KB, 2664 views)

Dear All,

Below is the news article related to the release of the Compensation Benchmarking Survey 2007.:

Warm regards,


IPMA-HR Releases Results of Benchmarking Compensation Survey

Media Contact

Tina Ott Chiappetta

Director of Government Affairs


1617 Duke Street

Alexandria, VA 22314

Ph: (703) 549-7100, ext. 244

Fax: (703) 684-0948




IPMA-HR Releases Results of Benchmarking Compensation Survey

On May 2, 2007, the International Public Management Association for Human Resources (IPMA-HR) benchmarking committee, chaired by Gib Johnson, Senior Manager, CPS Human Resource Services, released the results of the survey, Compensation: Focus on Variable Pay.

The study revealed that in order to be effective, a variable pay program, such as pay for performance must be funded at a level between one and seven percent of payroll and to be highly effective, it must be funded a level higher than 7 percent of payroll.

While many state, federal, and local governments fund their programs at more than one percent of payroll, far fewer fund it at greater than seven percent. Roughly 9 percent of counties and cities, 10 percent of states and 33 percent of federal employers fund their variable pay programs at a level of 7 percent of payroll or greater.

“Compensation is a key part of public sector performance,” noted IPMA-HR Executive Director, Neil E. Reichenberg. “The results of this survey are designed to help our members achieve their performance goals and provide a benchmark for their progress.”

Another significant finding from the survey is that 45 percent of respondents report using some form of variable pay and of those who do, pay for performance is by far the most popular with 88 percent reporting using this type of variable pay. Other common types of variable pay include skill-based pay, spot awards and competency based pay, although all far less popular than pay for performance.

Those using variable pay approaches said they are most effective at linking pay to performance and improving employee understanding of critical performance areas but they have been less effective in improving job security, or in reducing the base salary increase.

Thirteen organizations reported using gainsharing, a group incentive plan that directly translates increases in employee productivity into financial rewards. While this number is low, it is still significant. “Group based programs, such as gainsharing are not as popular in the public sector as the private,” noted Jim Fox, Chairman, Fox Lawson & Associates, LLC, a sponsor of the survey. “But, case after case has demonstrated that these programs can and do work,” continued Fox.

Fifteen percent of organizations reported using broadbanding, a pay structure that consolidates a large number of pay grades and salary ranges into fewer broad bands with relatively wide salary ranges. Those using broadbanding generally reported that it helped their organization become higher performing to a moderate or greater extent.

The survey was conducted in January and February 2007 and was sent electronically to all IPMA-HR members. Six hundred and forty individuals from all levels of government responded to the survey for a response rate of approximately 10 percent. The survey was conducted by IPMA-HR and sponsored by Fox Lawson & Associates, LLC. The survey report is available <link updated to site home>

IPMA-HR is a non-profit membership organization dedicated to providing resources and advocacy for public human resource professionals at all levels. Comprised of four regions and more than 50 chapters, IPMA-HR represents more than 7,000 individuals and 1,200 agencies in local, state and federal levels of government worldwide. IPMA-HR provides a focus and forum for the discussion and exchange of views and best practices among public sector human resource professionals throughout the United States and abroad.

From India
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