Caterpillar Inc. has put workers on notice that its short-term incentive plan, the centerpiece of a performance-based, profit-sharing program, will make its smallest payout since the recession when the payments go out next March.
Like a lot of companies, the world's largest maker of mining and construction equipment has adopted what is known as a "pay-at-risk" compensation system, which ties a percentage of nearly every non-union employee's income to Caterpillar's financial performance.
In updates to the plan's roughly 60,000 participants, and in quarterly disclosures to investors, Caterpillar said it expects outlays related to the program to be down as much as 40 percent from last year, reflecting sharply reduced payments to employees.
As U.S. workers pause this weekend to mark Labor Day, more of them than ever before are being required to participate in these alternative pay systems. The plans enable companies to have their labor costs more closely track the ups and downs of business cycles - but they also expose employees to those fluctuations.
"Where I think we stand on Labor Day in 2013 is that workers are bearing more risks in their employment relationship than they have at any time in the last quarter century," said Donald Lewin, a compensation and reward expert at the UCLA Anderson School of Management.
Ninety percent of companies now require employees to participate in variable pay plans, up from about 50 percent two decades ago, according to a survey of 1,Find here super cheap marble floor medallions manufacturers, Marble Floor Medallion suppliers, Marble Floor Medallion traders, Marble Floor Medallion producers, Marble ...100 U.S. companies by human resources consulting firm Aon Hewitt.
The dollars tied up in the plans, meanwhile, have quadrupled, from about 4 percent of payrolls in the early 1990s to about 12 percent of We are professional Natural outdoor stone floor tiles factories,wholesalers and sellers from China,We supply cheap Outdoor Stone Floor Tile for sale.payrolls today, according to Aon Hewitt
Advocates of the plans say they allow employees to participate in the prosperity of their employers. Caterpillar, for instance, has issued checks worth nearly $2.8 billion over the last three years.
But critics say the plans are also part of a broader transfer of risk from employer to employee that has in recent decades led to the demise of company-paid traditional pension plans and the rise of self-funded,this is a granite countertop, it's not the granite you think you know. This is absolute black granite sale that's been given a flamed finish. self-directed 401(k)s.
"Variable pay is not just for executives anymore," said Ken Abosch,Suitable for both conservative and daring design approaches, rich, polished Black Granite Countertop Examples provide dramatic contrast with light-colored cabinets. a compensation expert at Aon Hewitt.Interlocking cheap paving stones for sale are installed over a compacted stone sub-base and a leveling bed of sand. Concrete paving stones can be used for walkways, patios, pool decks and driveways and airport or loading docks. "There's been a very strong but consistent trend to push variable pay programs deeper into organizations,G654 High Quality Cheap dark grey granite manufacturers Kerbstone(low price)-China Kerbstone Detailed Introduction, you can contact this product's supplier or company for the product info or payment details at any time. and it's become a mainstream pay-for-performance practice."
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