Lack of satisfaction with pay

REWARD MANAGEMENT

Lack of satisfaction with pay

Less than half of employees in Britain feel they are fairly paid given their performance and contribution to their organisation, according to a study by Mercer Human Resource Consulting.

When Mercer asked employees to rate the quality of their benefits package, slightly less than half rated it as "good" or "very good".

Importance of pay

The Mercer survey asked employees to rate a series of factors in terms of the extent to which they influence their commitment and motivation at work:

• Just over two-thirds of employees state that pay is "extremely" or "very" important.
• But pay is regarded as a less important factor than "being treated with respect" and other factors including "the type of work I do", "being able to provide good customer service".
• Pay is rated as of similar importance to work-life balance.

Incidence of performance appraisals

Almost six in ten British employees report having had a formal performance appraisal in the past 12 months, according to the results of the Mercer survey.

The sectoral breakdown is as follows:

• Appraisals are most commonly conducted in the financial services sector. As the Mercer survey explains: "In the last decade, there has been a strong drive to achieve competitive levels of performance in this rapidly-changing sector". As a result, just over eight in ten employees report having had an appraisal in the last 12 months.
• Two-thirds of employees in technology, media and telecoms firms report having had an appraisal in the last 12 months.
• Only half of those in the NHS report having an annual appraisal, significantly less than the rest of the public sector.
• Only just over half of those in the retail sector have an annual appraisal. "This is a sector where there tends to be less focus on employee development," Mercer says.

Benefits of performance appraisals

Performance appraisal processes represent a major investment for organisations in terms of the time required of managers and appraisees, so what are the perceived benefits? Mercer found that of those employees who have an annual appraisal, two-thirds report that their last one was helpful in identifying ways for them to improve their performance.

Want to know more?

Title: Britain at Work Survey 2002, Mercer Human Resource Consulting.

Methodology: Respondents completed a survey questionnaire consisting of 125 questions about their perceptions of their job, organisation, work environment, compensation, benefits, and the management of their organisation.

Survey sample: The results are based on data collected from over 3,500 working adults in Britain representing a broad cross-section of industries. "The weighted survey results are representative of the entire British workforce and individual industry sectors."

Mercer Human Resource Consulting is the "largest consulting firm of its type in the UK, helping organisations create business value through their people". It employs over 3,500 staff in 17 office locations in the UK, serving some 7,000 corporate clients. To find out more visit www.mercerhr.com

Posted 24 January 2003