Are you wondering how companies are determining compensation for remote workers? Maybe you’ve been tasked with finding out whether paying for skills is really taking off? Or do you want to know just how prevalent flexible scheduling is?

Guess what? All that and so much more can be found in the US Compensation Policies and Practices Survey. Completed by over 800 companies, this comprehensive survey provides a front-row view of how others in your industry or market are tackling total compensation. For a compensation geek — and we’re using that term affectionately — it’s truly a fantastic read!

Check out some of the highlights below!

Valuing a job and managing base pay

95% of respondents found that job descriptions remain the most prevalent way to communicate job requirements, skills, and expectations; only 19% reporting using competency- or skill-based models. When it comes to valuing jobs, market pricing is still king and half of the companies stated that they use traditional salary grades to manage base pay, regardless of job level. Approximately 40% use job-specific market ranges. The least common way to manage base pay in the US is competency- or skill-based pay (3% reported ).

Looking for specifics on compensation structure design? Get your copy of the 2024 US Compensation Policies and Practices Survey here.

Flexibility and time off

Flexibility does seem to be the norm now with over 70% of companies reporting that they offer it to employees regardless of the job level. The flexibility most companies are offering includes flexible work start and end times based on manager’s discretion.

Despite some of the recent buzz around unlimited time off programs, the reality is that it’s just not that common. Of the companies we surveyed, only 14.6% offer unlimited vacation days.

An interesting find from this survey was the prevalence of companies offering summer hours, which consist of half days on Fridays, a shortened work week, and/or altered start and finish times. 17% of companies reported having summer hours.

Compensation strategies and handling remote workers

Most US respondents reported that they have a formal market position for base salary; however, only 36.6% have one for total cash compensation and even fewer (18.5%) have one for total direct compensation. Nearly all companies report that their target positioning is the fiftieth percentile. Whether or not they actually meet that target is a different question, of course.

A topic that has been in the news continuously for the past couple of years is how to pay remote workers — what market do you use to anchor their pay? Since we’re now seeing many companies issue return-to-the-office orders, including the federal government, it’s safe to say that anyone who still has remote workers, even a small percentage, likely has their go-forward strategy in place. 45% of companies reported that they use the market rate of an employee’s home location while just under 28% use the market rate of the primary office location.

Looking for more information?

The US Compensation Policies and Practices survey really is a powerhouse of all things compensation and rewards. From elements of plan design to how others are addressing newly emerging trends in what they offer employees, this survey really delivers!

Of course, if you need guidance on a topic not covered, give us a call at 1-855-286-5302 or reach us by email at surveys@mercer.com