Developing a strategic approach is top of reward agenda

REWARD STRATEGY

Developing a strategic approach is top of reward agenda

Leaving aside the annual pay settlement, the most important ongoing priority for the coming year for organisations is to devise a reward strategy, according to a large-scale survey by pay analysts IRS.

Just over two-fifths (42.2%) of the 500 employers surveyed cited reward strategy as the most important issue for them in the next 12 months. As many as 42.4% mentioned the annual pay review.

Although almost half of the respondents reported that they had reviewed their grading structure during the past year, 39.9% say it is an important area for their organisation in the coming 12 months.

Minority have conducted equal pay audits

Just one in five (20.5%) had conducted an equal pay review, while "worryingly" the largest proportion of employers -- one in four (24.4%) -- said they had no plans to do so. "The level of apathy is particularly marked in manufacturing and among smaller employers," says IRS.

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Title: "HR prospects 2004: Pay the strategic way", IRS Employment Review 799, 7 May 2004.

Methodology: Third annual HR prospects study is based on information received from a postal survey conducted in February 2004.

Sample size: In all, 519 organisations participated in the research, employing 2.9 million employees.

Business sectors: Organisations participating in the study come from all parts of the economy. By broad sector, the survey covered 241 private services companies, 163 manufacturers and 97 public sector organisations.

Availability: Contact the subscriptions department at IRS in London, tel: 020 8686 9141 or visit www.irsemploymentreview.com

Posted 21 June 2004