REWARD RISKS
CIPD survey shows shift in priorities for reward professionals
The vast majority - almost eight in ten - of reward professionals continue to be concerned about the ability of their organisations to manage reward risks, according to the annual Reward Risks Survey by the Chartered Institute of Personnel and Development.
In particular, the survey suggests that they are concerned about achieving the balance between affordability and the need to offer competitive reward packages as demand for key skills picks up and employees’ appreciation of the value of total packages diminishes.
%ADVERT%
Although the top risks identified remained consistent with previous years, the survey shows a shift in priorities this year, in line with the wider business and economic challenges facing organisations. Some risks have moved up the scale of importance while others have become less relevant.
Top ten rankings of reward risks faced by reward practitioners and consultants
1. Employees don’t appreciate value of total reward offering: (up 4 places)
2. Unable to increase pay levels due to budget constraints: (up 6)
3. Line managers have poor understanding of reward: (down 1)
4. Reward is not perceived as fair: (up 5)
5. Inability to change reward practices quickly: (down 1)
6. Employees don’t understand performance and behaviour requirements: (unchanged)
7. Reward not engaging employees: (down 4)
8. Incentives not motivating: (up 3)
9. Reward unable to attract key skills: (down 8)
10. Reward not retaining talent: (down 4)
Source: Chartered Institute of Personnel and Development.
A final word
“In the current economic climate, reward specialists are understandably concerned about budgetary constraints but are also even more frustrated that employees don’t fully appreciate the real value of the total reward packages that are already being paid. Perceived fairness and equity in pay and reward also seems to be much higher on the list of concerns this year than it was in 2010.” - Charles Cotton, rewards adviser at CIPD.
Want to know more?
Title: Reward Risks Survey, Chartered Institute of Personnel and Development (CIPD), November 2011.
Availability: The 17-page survey can be downloaded in PDF format, free of charge, here: www.cipd.co.uk/hr-resources/survey-reports/reward-risks-2011.aspx.
Survey details: The survey was carried out between 5 August and 9 September 2011.
Replies were received from 361 reward professionals: 84% of respondents are reward or HR practitioners and 16% are consultants.
Most of the reward practitioners work for private sector organisations (70% of the sample) employing more than 1,000 employees (61%).
Most respondents are based in the UK and Ireland (69%), followed by Europe (12%), Asia Pacific and Africa (6%).
The Chartered Institute of Personnel and Development (CIPD) is the “world’s largest chartered HR and development professional body, setting global standards for best practice in HR”. It has over 135,000 members across 120 countries. For more details visit www.cipd.co.uk.