Employers are increasingly taking a strategic approach to reward, with 35% having done so, so far. A further 40% plan to adopt a strategic approach in the coming year.
The sixth annual Reward management survey by the Chartered Institute of Personnel and Development (CIPD) also found that 41% of respondents have adopted a total reward strategy, while 32% plan to do so in 2007.
More than half (55%) of respondents, meanwhile, claim to measure the effectiveness of their reward strategy.
Where bonuses and incentives are concerned, two-fifths of organisations that currently offer such schemes to make some changes this year. Just under a quarter (23%) intend to introduce another scheme to sit alongside their current arrangements, while 16% will introduce a scheme for the first time.
Non-cash recognition and incentive schemes are offered by 36% of respondents and are particularly popular among private sector employers. Nearly all employers (96%), meanwhile, offer a pension scheme for staff. Just under a third (29%) use salary sacrifice arrangements for their occupational scheme, while the same number automatically enroll employees into their pension plan.
A fifth of respondents, meanwhile, are planning to make changes to their pension arrangements this year, with the most popular options being increasing both employer and employee contributions, and moving to a salary sacrifice arrangement.
- For more information, visit www.cipd.co.uk/surveys from 8 February.
|What is employers’ perception of reward strategy?|
|Claim to mesaure the effectiveness of their reward strategy||55%|
|Have adopted a total rewards approach||41%|
|Are planning to create a strategy in 2007||40%|
|Have a reward strategy||35%|
|Are planning to take up a total rewards approach in 2007||32%|