Relationship with manager not merit matters

REWARD MANAGEMENT

Relationship with manager not merit matters

Pay awards are more often based on the employee/manager relationship than ability, according to respondents to a survey published by the Chartered Institute of Personnel and Development and the Reward Group.

Based on interviews with 1,300 CIPD members and other personnel professionals, the survey found:

  • Negative effect: The overall perception that pay awards were unfair led the majority of respondents to believe that it had a negative effect on recruitment (59%) retention (73%) and employee commitment (78%).
  • Transparency: 41% said that their organisations were secretive about pay decisions, compared with 33% who felt that they were open.
  • Fairness: 13% of respondents said that their organisations did not care about the fairness of pay decisions.

A final word

"There is a perception that pay structure and awards are somewhat unfair in UK organisations. A lack of transparency may be a key factor in this given that respondents were more likely to feel that their organisations are secretive about pay. Our view is that organisations need to be more effective in communicating information about pay and how it is determined. Communication should be ongoing, regular and not just when people join the organisation." - John Philpott, chief economist, CIPD.

Want to know more?

Title: Views on Pay Management 2002, published by the Chartered Institute of Personnel and Development (CIPD) and the Reward Group.

Methodology: The data was collected in October and November 2001 from 1,300 CIPD members and other personnel professionals. The results are analysed by number of employees and industry sector.

Availability: Copies of the report are available from the Reward Group at £20 each, tel: 01785 813 566. To find out more about the Reward Group visit . . .

www.reward-group.co.uk

Posted 27 March 2002