Our coverage of Total Retail’s first annual Salary Benchmark Report this week examines how retail executives — CEOs/presidents/founders; chief marketing officers; C-level execs other than CEOs and CMOs; and vice presidents — view the approaches taken by their companies to award raises. This data can be looked at in two different ways: one, how their own individual raises are determined, particularly those in a position where they're reporting to another person or entitity (e.g., board of directors) and, two, since these executives are frequently making compensation decisions for employees that they manage, what are they basing their decisions upon when deciding whether to give an employee a raise.
The Salary Benchmark Report was produced based upon the responses to an online survey that was sent to Total Retail’s audience over a two-week period last summer. Survey questions asked respondents about their salaries, benefits (financial and nonfinancial), opinions on their career paths and compensation fairness, as well as demographic information. The survey resulted in 660 responses; the C-suite respondents accounted for 182 responses.
The chart below shows these 182 respondents’ answers to the following statement: Choose from the list below the method that most closely matches your beliefs about how your company decides eligibility for a raise. (Click on the chart to get an expanded view.)
Here are some of the key findings to emerge from this chart:
- It's promising to see that most executives believe that raises are based on merit (i.e., job performance) more than tenure. Furthermore, a combination of time spent at a company along with performance ranks highly with respondents in regards to how raises are awarded.
- I found it surprising that 31 percent of chief marketing officers that took the survey believe their companies award raises based neither on time with the company or merit. I wonder what these respondents believe raises at their companies are based on.
- The answers of CEOs/presidents/founders and vice presidents most closely aligned with each other among the four respondent segments. This is interesting consider these are the people most likely to be awarding raises at their companies — or at least approving of them.
For more of these valuable insights into retail executives’ salaries, download Total Retail’s Salary Benchmark Report today! This comprehensive research report can help you maximize your earning potential, as well as enable employers to benchmark their compensation packages against the rest of the marketplace — a critical component to acquiring and retaining valuable executive talent.
Related story: Do Retail Execs Feel They're Being Compensated Fairly?