The U.S. Bureau of Labor Statistics released a report announcing the unemployment rate dropped to 7 percent in November, the lowest rate in five years.
The Department of Labor said November 2013 marked the fourth consecutive month of hiring growth. November added more than 203,000 jobs to the labor market, a statistic that helped lower the overall national average by 0.3 percent from October’s rate of 7.3 percent, the Chicago Sun Times reported.
Between August and November, the U.S. economy added an average of 204,000 jobs, a substantial increase from April through July’s 159,000 jobs.
The continued upturn in employment opportunities means an increase in worker confidence and higher rates of salary competition. After the financial collapse, because of the lack of career opportunities and the economic condition, many salaries were lower than in prerecession years. Subsequently, because more workers were available than jobs, there was little room for competitive salary packages, as many felt happy to have a job at all.
Now, as the economy is on the steady incline, incentive compensation management (ICM) structures are again increasing in popularity, with many companies looking to merit increases and other performance-based pay plans to usher in a new labor era.
ICM helps develop leaders for new business age
ICM and merit increases inherently rely upon stellar work performance in order to achieve higher salaries. This an invaluable concept that can ultimately help companies shape and guide future leaders to positions of success with pay to match.
Merit pay and ICM can be integrated into professional development plans, and with increased job creation and more workers entering the workforce, leaders can be crafted from the get-go. The Society for Human Resource Management recommends several ICM strategies that range from team-based structures, to individual incentives to profit-sharing, an array of plans to fit a multitude of company needs.
By designing and implementing an ICM structure with a professional development plan, employees can begin to build personal capital while mastering top-performer skills that can pave the way for a business’ future success in a friendlier economic climate.
Many ICM strategies can easily be managed through software solutions that allow for streamlined use and increased transparency between the employer and the worker. ICM software also helps to keep employees engaged, as most programs extend access to employees so they can chart and plan their financial and professional progress.
