Effective Compensation Management
In recent years, organizations have made significant changes to the way they compensate workers. The focus on cash compensation has, in many sectors, given way to a more comprehensive as well as a more creative and personalized approach, one that’s needed to attract and retain top talent. This has particularly been the case in hyper-competitive, knowledge-based industries such as financial services, where higher levels of compensation are a function of the significant financial impact expected of top talent.
For example, the average Goldman Sachs employee makes $367,564 USD annually, according to the firm's recent financial disclosures, up from last year’s per-employee average of $254,850. A key point here is that at much higher levels of cash compensation, small percentage increases can have little to no effect on employee retention or on their ability to achieve employees’ financial goals.