According to global HR firm Mercer, trends in short-term incentives for employees, based on annual performance of companies, signal a patchy business confidence in most parts of the world including the Asia-Pacific region. The conclusions are based on data garnered from over 7.6 million employees worldwide. The trend is mainly on account of companies looking to stay within tight budgets and effectively motivate their skilled workforce.
In India, part of Asia-Pacific region, the percentage of employees receiving STIs fell to 73 percent last year from 80 percent in 2009. As per Mercer data, the share of such employees was 75 percent in 2010. Short-term incentives (STIs), an important part of remuneration package for key employees and senior executives, generally reflect the overall performance of a business.
Source: The Economic Times