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.
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| 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% |
Source: CIPD