New Incentives are on the Rise

Abstract

In today’s tight labor market, businesses are finding they have to offer more creative packages that go beyond traditional compensation just to stay competitive. With unemployment at historically low levels, jobs are plentiful and employee turnover is a major concern for businesses of all kinds. This article uses national survey data of employees and employers and case studies to explain why an increasing number of U.S. companies are using incentives and “sticky” rewards in the workplace. It describes how these programs can be incorporated into a company’s comprehensive efforts to attract and retain the best employees in a tight labor market.