U.S. Companies Increase Focus on Pay Packages

A tight labor market is causing U.S. companies to boost pay and benefits packages in a bid to attract and retain employees, according to a recent poll of 275 firms conducted by consultancy Willis Towers Watson and cited by the Wall Street Journal . Two-thirds of the businesses surveyed have enhanced their employment packages, which include compensation and retirement and financial benefits, among other perks. Practices vary widely between firms, reports Carole Hathaway, Willis Towers Watson's global rewards head. Just 49 percent of respondents said they understood which total rewards offerings their employees valued. "The economic situation is having an impact equally as the competition for scarce talent," Hathaway said. Sixty-one percent of the firms surveyed said they are considering providing workers with greater flexibility in connection to benefits, career options, and/or working arrangements.