Ensuring benefits offerings engage and motivate employees is now a bigger concern for employers than the need to attract and keep staff, according to research by the Chartered Institute of Personnel and Development (CIPD).
The CIPD Reward risk survey found that for the first time employee attraction and retention has fallen off the list of the top ten employer concerns. Now in 12th place, it was previously featured in first place in 2010 and 10th place last year.
The top concern in 2012 is that employees do not appreciate the value of the total reward offering. Second place is that reward is not engaging employees. For the first time since the list was started in 2010, increasing pension costs has made it into the top ten concerns.
Charles Cotton, rewards adviser at the CIPD, said: “It’s encouraging to see reward professionals thinking more strategically about rewarding the behaviours and performance that contribute to business success, but attracting and retaining key talent is always crucial, in the good times and the bad.
“Even in a stagnant labour market, key talent can find opportunities to move onward, so reward professionals shouldn’t be too complacent while they wait for the economy to eventually pick up.”
The CIPD’s findings echo Globoforce’s own discoveries from its survey when it comes to the discord between recognition and reward. Organisations need to make a concerted effort to ensure their reward programmes, and their value, are clearly communicated to their employees.
While making employees feel appreciated through rewards can have a positive effect on employee engagement, simply recognising their contribution can have a more meaningful impact.
An outdated approach to the employee performance review process could be the root of the problems revealed in the CIPD’s findings. Our research, which found that more than 50% of employees believe annual reviews are not an accurate appraisal of their work, combined with the CIPD’s findings, suggests that performance reviews should be taking place more strategically and frequently. This would ensure that employers effectively communicate core performance and behaviour requirements to employees.
Communicating the value of reward, as well as ensuring employees are aware of their targets to achieve these rewards, will ensure staff feel appreciated and sufficiently compensated for their contributions. Once this is in harmony, employee engagement and productivity can only increase.