Decline in number of organisations that can report on total reward costs

REWARD MANAGEMENT SURVEY

Decline in number of organisations that can report on total reward costs

Almost half of organisations surveyed by Thomsons Online Benefits state that controlling employment costs is their top concern. Yet there has been an 18 percentage points slide in companies that can report on their total reward costs - down from 64% last year to 42% in 2012.

What’s more, almost six in ten respondents still don’t have a written reward strategy. These are among the key findings to emerge in the ninth annual Employee Rewards Watch report.

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Other key survey findings

• Pensions: Unsurprisingly, almost three-quarters of respondents cite changes to pension legislation and regulation as their key benefits strategy challenge. But only 24% are compliant already and 43% won’t be ready until September 2012. Just 19% are already using auto-enrolment to enrol eligible employees into their pension schemes. Affordability (55%) and a lack of understanding (41%) were reported as the main reasons why employees don’t engage with, or take up, their pension benefits.

• Flexible benefits: 40% of respondents now offer flexible benefits schemes with 56% reporting that improved employee engagement is the greatest benefit of implementing such schemes.

• Health and wellbeing benefits: 62% of respondents are not yet aware of the government’s “Healthier Workforce” pledges and, although 11% provide health and wellbeing benefits primarily to reduce levels of sickness absence, 38% do not know if their absenteeism levels actually reduced in 2011.

A final word

”During the last 30 years, there have been many changes in the world of pensions - some positive, some negative - but no change as significant as the introduction of National Employment Savings Trusts (NEST) and the accompanying application of auto-enrolment. Everyone should prepare themselves for a roller coaster of a pensions ride over the next few years as we respond to the staging dates and then the subsequent phasing dates which occur all the way up to October 2018. Respondents to Employee Rewards Watch this year have given a very clear indication that this issue is now very firmly on their radar.” - Michael Whitfield, Chief Executive, Thomsons Online Benefits,

Want to know more?

Title: Employee Reward Watch 2012, Thomsons Online Benefits.

Survey details: A total of 430 organisations took part in the survey between September and November 2011. As many as 62% of respondents employ more than 1,000 people, 40% are located throughout the UK and 21% were Director level respondents.

Availability: To download a PDF copy of the report go to www.thomsons.com/erw2012.

Thomsons Online Benefits helps "businesses gain maximum benefit from their employee reward schemes at minimum cost". For more information visit www.thomsons.com.