Many human resources departments are boosting their payroll management by hooking and keeping workers at the company through sign-on and retention bonuses, according to a new study by nonprofit HR organization WorldatWork.
WorldatWork's "Bonus Programs and Practices" survey found more HR departments are using these two types of programs than in the past. There's also been an increase in the use of referral bonus programs and spot bonus programs. Seventy-four percent of 713 surveyed participants have a sign-on bonus program compared to only 54 percent in 2010. Fifty-one percent use a retention bonus program, which is more than double the amount that did in 2010. Likewise, 63 percent now have a referral bonus program compared to 60 percent in 2010, and 60 percent have a spot bonus program compared to 43 percent in 2010.
According to the survey, these programs are strategic approaches to payroll management and talent acquisition.
Rose Stanley, total rewards practice leader at WorldatWork, said recruiting and keeping talent has become a greater focus for employers, especially now that the recession is over and there may be additional financial resources available.
"The uptick in sign-on and retention bonus programs may indicate that the war for key talent could be heating up as the economy improves, leading to an increased focus on attracting and retaining employees," Stanley said.