February 28, 2022
WSJ – Tech Giants Turn to a Classic Recruitment Tool: Cash
After years of enticing employees with large stock awards and surging share prices, some technology companies are deploying a time-tested tool: cash.
Employers’ recent changes to compensation have been fueled by a desire to blunt attrition during a period of labor market upheaval caused by employees re-evaluating their careers after two years spent working from home, recruiters and compensation consultants said. Inflation and the stock market’s volatility have also led staff to re-evaluate their appetite for risk and preference for cash.
As cash compensation looms larger, some companies are increasing the size of merit-raise pools to 4% of payroll from a typical level of 3%, said Robin Ferracone, founder of compensation consulting firm Farient Advisors.