WorldatWork Survey Finds Telework on the Rise in the U.S., Canada

Analysis of Employee Retention Practices Shows Some Cross-Border
Differences
WASHINGTON--(Business Wire)--
Employers in both the United States and Canada deploy a similar
mix of employee rewards programs to attract and retain talent in an
ever-changing marketplace with diverse employee needs.

According to the 2008-2009 WorldatWork Salary Budget Survey,
telework - among all surveyed total rewards programs - has shown the
most significant 12-month increase in both countries. In contrast, the
use of other employee rewards programs inched up only slightly in
recent years, and a few even declined. See tables 1 and 2.

Telework grew considerably in the U.S., from 30 percent of
organizations saying they offered it to employees in 2007 to 42
percent this year. In Canada, the increase was even more significant,
from 25 percent to 40 percent.

"It's been a perfect storm," said Anne C. Ruddy, CCP, president of
WorldatWork. "Rising gas prices, leading-edge technology, and the push
for work-life flexibility have all come together in the past 12 months
to create a pretty dramatic increase in telework across the U.S. and
Canada."

A comparison of rewards practices in the U.S. and Canada noted a
number of similarities, as well as a few differences:

1. Part-time employment with benefits: Offered by 38 percent of
employers in Canada and 37 percent of employers in the U.S.

2. Retention bonuses: Grew from 27 percent in 2004 to 38 percent
in 2008 in the U.S. with similar growth in Canada

3. Sign on/hiring bonuses: On the rise in both the U.S. (70
percent) and Canada (51 percent)

4. Stock grant programs: Growing in both countries, though
experiencing more rapid growth in the U.S. from seven percent
in 2004 to 20 percent this year

5. Stock option programs: Declining in both countries

6. Spot bonuses: U.S. employers are more apt to pay spot bonuses:
45 percent compared to 34 percent of Canadian employers in
2008

7. Pay rates: 31 percent of U.S. employers pay above market
compared to 25 percent in Canada

8. Merit increase budgets: 16 percent of Canadian organizations
report larger merit increase budgets in 2008 compared to 9
percent in the U.S.

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*T
Table 1. Programs Used to Attract and Retain Employees in the U.S.

----------------------------------------------------------------------
2004 2005 2006 2007 2008
(n=2,308) (n=2,286) (n=2,251) (n=2,136) (n=2,288)
----------------------------------------------------------------------
Sign-on/hiring bonus 61% 64% 69% 70% 70%
----------------------------------------------------------------------
Employee referral
bonus 63% 63% 65% 66% 69%
----------------------------------------------------------------------
Market adjustments/
increase to base
salary 55% 60% 64% 65% 65%
----------------------------------------------------------------------
Flexible work
schedules -- -- -- 62% 63%
----------------------------------------------------------------------
Flextime -- -- -- -- 51%
----------------------------------------------------------------------
Compressed work
week -- -- -- -- 27%
----------------------------------------------------------------------
Telecommuting/
telework -- -- -- 30% 42%
----------------------------------------------------------------------
Job sharing -- -- 12% 14% 13%
----------------------------------------------------------------------
Spot bonus
(individual) 43% 43% 45% 46% 45%
----------------------------------------------------------------------
Retention/stay bonus 27% 30% 35% 38% 38%
----------------------------------------------------------------------
Part-time employment
with benefits -- -- 28% 32% 37%
----------------------------------------------------------------------
Paying above market 25% 28% 30% 29% 31%
----------------------------------------------------------------------
Stock option program 27% 25% 24% 23% 22%
----------------------------------------------------------------------
Stock grant programs 7% 10% 16% 21% 20%
----------------------------------------------------------------------
Project milestone/
completion bonus 16% 17% 18% 21% 18%
----------------------------------------------------------------------
Special cash bonus/
group incentives 17% 19% 20% 20% 19%
----------------------------------------------------------------------
Separate salary
structures 13% 12% 13% 15% 15%
----------------------------------------------------------------------
Exempt overtime pay
or time off 14% 15% 13% 14% 14%
----------------------------------------------------------------------
Larger merit
increase budgets 7% 9% 10% 11% 9%
----------------------------------------------------------------------
Phased retirement -- -- 4% 6% 6%
-------------------- --------- --------- --------- --------- ---------
Paid sabbaticals 3% 3% 2% 3% 3%
-------------------- --------- --------- --------- --------- ---------
*T

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*T
Table 2. Programs Used to Attract and Retain Employees in Canada

----------------------------------------------------------------------
2004 2005 2006 2007 2008
(n=213) (n=210) (n=207) (n=195) (n=227)
----------------------------------------------------------------------
Market adjustments/
increase to base salary 58% 56% 65% 64% 66%
----------------------------------------------------------------------
Flexible work schedules * * * 62% 64%
----------------------------------------------------------------------
Flextime * * * * 58%
----------------------------------------------------------------------
Compressed work week * * * * 30%
----------------------------------------------------------------------
Telecommuting/telework * * * 25% 40%
----------------------------------------------------------------------
Job sharing * * 12% 17% 19%
----------------------------------------------------------------------
Employee referral bonus 46% 47% 48% 51% 61%
----------------------------------------------------------------------
Sign-on/hiring bonus 44% 44% 51% 50% 51%
----------------------------------------------------------------------
Part-time employment with * *
benefits 34% 32% 38%
----------------------------------------------------------------------
Retention/stay bonus 26% 27% 30% 37% 37%
----------------------------------------------------------------------
Spot bonus (individual) 27% 28% 30% 30% 34%
----------------------------------------------------------------------
Paying above market 28% 35% 30% 31% 25%
----------------------------------------------------------------------
Stock option program 28% 24% 23% 28% 23%
----------------------------------------------------------------------
Project milestone/completion
bonus 17% 20% 23% 42% 23%
----------------------------------------------------------------------
Exempt overtime pay or time
off 19% 21% 20% 18% 19%
----------------------------------------------------------------------
Larger merit increase budgets 5% 9% 12% 16% 16%
----------------------------------------------------------------------
Special cash bonus/group
incentives 13% 14% 16% 17% 14%
----------------------------------------------------------------------
Separate salary structures 9% 7% 10% 9% 13%
----------------------------------------------------------------------
Stock grant programs 8% 5% 9% 13% 13%
----------------------------------------------------------------------
Phased retirement * * 6% 8% 8%
----------------------------------------------------------------------
Paid sabbaticals 6% 3% 3% 4% 5%
----------------------------------------------------------------------
*T

About the Survey:

Survey data was collected in April 2008 with a 3 percent margin of
error. Survey respondents were WorldatWork members employed in the HR,
compensation and benefits departments of mostly large North American
companies. The WorldatWork Salary Budget Survey is the most
comprehensive salary budget survey with more than 2,700 organizations
representing 13.6 million North American employees.

About WorldatWork(R)

The Total Rewards Association

WorldatWork (worldatwork.org) is a global human resources
association focused on compensation, benefits, work-life and
integrated total rewards to attract, motivate and retain a talented
workforce. Founded in 1955, WorldatWork provides a network of more
than 30,000 members and professionals in 75 countries with training,
certification, research, conferences and community. It has offices in
Washington, D.C. and Scottsdale, Arizona.

WorldatWork
Marcia Rhodes, APR, 202-315-5517 or 480-304-6885
Media Relations
marcia.rhodes@worldatwork.org

Copyright Business Wire 2008