REWARD MANAGEMENT
Aon exposes dissatisfaction with reward practices
Two-fifths of employees say they are not satisfied with their overall rewards and recognition programmes, according to figures gathered by remuneration consultants Aon.
But the picture painted by the survey was very mixed. As Aon puts it: "There is quite a difference of opinion among UK workers on the subject of rewards."
While 58.8% of the 1,570 interviewees report that recognition and rewards meet or exceed their expectations, as many as 41.2% say they are not satisfied.
"UK employees need to be recognised and rewarded. They need to see a link between their performance and their pay within the organisation," Aon says.
Employee views on reward
The research looks at employees' attitudes and commitment within UK workplaces and the effectiveness of 38 organisational practices, including reward and work-life balance.
The key reward statistics are these . . .
Employees' satisfaction with reward
|
| Agree |
| Benefits programmes meet or exceed your needs | 76.1% |
| Performance appraisal meets or exceeds your expectations | 72.9% |
| You understand how performance is evaluated | 61.5% |
| You are paid fairly compared to others within your organisation | 54.9% |
| You understand how your remuneration plan is determined | 54.1% |
| You are very satisfied with communications about benefits programmes | 50.3% |
| Your pay is competitiveness with other organisations | 44.1% |
| Your pay is linked to your performance | 38.7% |
Source: Aon Consulting.
Pay as an entitlement
Aon found some telling evidence that an entitlement mentality has become a pervasive feature of many organisations. As the reports explains:
"While most understand how their performance is evaluated and believe it is fair; few see their pay linked to performance. Consequently the number of respondents who understand how their remuneration is determined drops."
Because employees see pay as an entitlement rather than as a performance reward, Aon warns that there is a danger that the offer of a relatively modest salary hike by a competitor can lure your employees away.
In fact, the researchers found that one in three employees would walk out of the door for a rise of 10% or less.
Benefits
The study reveals that benefits packages are generally meeting the needs of employees. But are benefits really of any value when it comes to holding on to your employees? No, is the only conclusion to be drawn from the Aon research.
Consider this sobering statistic: two-fifths of employees said benefits are not particularly important in preventing them from looking for a job elsewhere.
Criteria for success
One of the secrets of success, Aon concludes, is to create a "reward system that recognises performance and builds a bond between employer and employee".
Document extract
Aon action plan
Examine the compensation programme in relation to actual job requirements. Is pay based on current performance or on past accomplishments? Is pay equitable within your organisation? Is it competitive with other organisations?
Ensure that performance expectations are realistic and clear to both employee and evaluating supervisor.
Define and communicate criteria for pay increases. Is there a link to performance?
Encourage and train supervisors to give positive feedback as well as negative feedback.
Survey details
Title: United Kingdom @ Work 2000: workforce commitment in the new millennium.
Survey sample: Aon conducted 1,570 telephone interviews with employees: 56.2% male, 43.8% female.
Job category: Interviewees were drawn from a wide range of jobs, with 25.3% classed at professional/technical, 17.0% team leaders and 10.2% clerical/administration.
Methodology: The researchers developed a measure called the UK Workforce Commitment Index (WCI) to summarise the level of employees' commitment to their organisations.
The data the researchers assembled this year was used to establish a "benchmark" index pitched at 100. So, in future studies Aon will be able to track trends: a score above 100 will represent higher commitment and a figure less than 100 will indicate lower commitment.
Availability: contact Charlotte Mandel at Aon Consulting, tel: 020 7767 2220 or email: aers@aonconsulting.co.uk
Want to know more?
Take a look at the Aon web site . . . www.aonconsulting.co.uk