The alignment of pay awards and individual or business unit-performance is the top priority for UK employers in 2012, according to research by Curo Compensation.
The first annual UK compensation trends survey, run jointly with HR recruitment firm Digby Morgan, found that 40% of respondents intend to increase the differential in pay awards between top performers and the rest of the organisation.
Another top priority for employers is effective employee engagement, both directly and through line management.
When it comes to compensation management, 62% of respondents do not believe the technology they use is flexible enough to meet their needs. A further 55% believe the administration of their existing process is too onerous.
Gerry O’Neill, chief executive officer (CEO) at Curo Compensation, said: “The survey results clearly demonstrate that a window of opportunity exists for HR to ensure absolute alignment of compensation decisions with individual performance.
“By focusing on the way compensation processes are managed, and implemented, HR can effectively operate within budget limits, ensure fairness of recommendations resulting in both talent retention and engagement.”
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