Reward practices falling well short

REWARD MANAGEMENT

Reward practices falling well short

A third of employees say that their benefits packages do not cover their needs or their family needs, according to figures gathered by remuneration consultants Aon.

While 56% of the 1,502 interviewees report that recognition and rewards meet or exceed their expectations, as many as 44% say they are not satisfied.

Aon says: "The best compensation programmes encourage employees to act in a manner that will lead to organisational success. These programmes motivate employees to improve their contribution to the organisation, to be innovative in their work, and to be loyal to the organisation. However, employees report that current remuneration programmes fall short."

Main survey findings

The key reward statistics are these:

• More than four in ten are not satisfied with internal pay equity, while more than one in three are not satisfied with the competitiveness of pay compared to other organisations.
• A third of employees report that remuneration programmes do not encourage excellence in performance, and two-fifths report that they do not foster innovation.
• A third of employees are dissatisfied with the communications they receive about their benefits.

A final word

Want to know more?

Title: UK@Work volume III 2002, Aon Consulting.

Survey sample: Aon conducted 1,502 telephone interviews with employees during the first quarter of 2002 from a "randomly selected national sample".

Methodology: The researchers developed a measure called the UK Workforce Commitment Index (WCI) to summarise the level of employees' commitment to their organisations.

Availability: Contact Charlotte Mandel at Aon in London, tel: 020 7638 0909, email: charlotte.mandel@aers.aon.co.uk.

Aon provides professional insurance brokerage and consulting services, it employs 44,000 people in 550 offices in 120 countries. Take a look at Aon’ s web site at www.aon.com

Posted 1 April 2003