KEY FINDINGS
Analysis of the survey data revealed four trends for finance, HR, and other C-suite leaders to consider as they close out 2021 and head into 2022. Most respondents have realized financial performance and growth that are much stronger than 2020’s Covid-affected results. Recovery, rebound, and re-energizing have produced four kinds of challenges and responses for middle market and emerging enterprises to consider: 1. Compensation for executive and senior-level leaders has increased solidly and across the board. For many companies, compensation went into a holding pattern in 2019-2020. Now, with robust growth for most companies, executive and top team compensation has increased across the board. The biggest beneficiaries have been executives with direct revenue responsibility—sales and marketing leaders. Short-term incentive packages show increased emphasis (compared to past years) on revenues in addition to profitability. We also saw a doubling in the number of enterprises that include measures of customer and employee satisfaction among the triggers for incentive compensation. 2. Enterprises are struggling to keep and find critical skilled talent in the face of the “ Great Resignation .” Companies’ talent shortages are of two kinds—difficulties finding talent and difficulties keeping it. Finding talent is difficult across the board—executive, managerial, technical/specialist, experienced workers, and hourlies are all hard to find, with technical and specialist workers most scarce. But retention problems are concentrated in the technical/ specialist and experienced worker categories. Both attraction and retention need to be addressed to increase growth and performance—but the attrition/retention problem may have special urgency and expose the most significant weaknesses in middle-market talent planning toolkits and capabilities. 3. Acquisition and retention problems cannot be successfully addressed with “same-old, same-old” initiatives and activities. Indeed, a large majority of companies say that they lack the tools and capabilities to address the talent challenges they face. Looking more closely, they’re trying to address the problem by throwing money at it—changes in pay and benefits. Even the non-monetary strengths they cite—the top two are access to senior management and to mentors—are functions of the size of the enterprise more than of any intentional actions or capability-building. But companies are not giving enough attention to the underlying factors: culture, a sense of personal growth and accomplishment, talent development, career pathing, and diversity.
2021-2022 Mid-Market Talent Acquisition, Executive Compensation and Culture Study — Powered by Insperity I 5
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