Michael Rose: Getting more for less in benefits in 2013

Getting more for less has been a growing theme in 2012, and one that I expect to continue in 2013.  Organisations will look for tax-efficient, approved benefits arrangements that can deliver value at low or nil cost, such as salary sacrifice. 

That said, while there will be a growth in approved plans, more aggressive forms of tax planning will continue to decline in 2013. 

Meanwhile, employers will need to ask themselves whether they are getting value from their reward spend. Shorter and more frequent employee engagement surveys will be used to check the pulse of an organisation and how effectively reward is working.

Not enough organisations take a strategic approach to reward, though I expect this to change in 2013 as employers start to align their HR strategy with their organisation’s aims.

The pace of organisational change will only increase pressure on employers to reconsider the use of out-dated reward mechanisms.  In particular, I expect increased flexibility of pay systems to recognise further fragmentation of pay markets. Organisations will also need to review their bonus plans to ensure they are fit for purpose: most are not.

 

This article has been reproduced with persmission of Michael Rose author of ‘A guide to non-cash reward. Rose is currently writing a book on Reward Management for publication in 2014.