General Electric Co. has long been famous for its management practices. Former CEO Jack Welch, subject of many a business school lesson, pioneered a competitive system that rewarded the best-performing employees and fired the worst.
The corporate ritual of the annual raise was central to that system. Now GE is exploring alternative forms of compensation and benefits that would better suit today’s dynamic work environment. The solution, GE’s Janice Semper told Bloomberg, will require “being flexible and re-thinking how we define rewards, acknowledging that employees and managers are already thinking beyond annual compensation in this space.”
Many startups and technology companies already offer non-traditional rewards as a way to attract and retain talent. But they sit outside the norm: Just 1.2% of U.S. companies currently give managers the discretion to increase base compensation at any time, according to Mercer LLC.