Reward strategy remains a minority pursuit among UK employers


Reward strategy remains a minority pursuit among UK employers

Only a third of employers have a clearly defined written reward strategy, according to a survey by HR magazine in association with WorldatWork. The survey found that more than a third of employers (36%) admit they have no strategy around pay at all, while a further 31% have no written pay strategy.


Three-quarters of those polled (73%) have a bonus scheme in place. As many as 53% of all respondents have paid staff some form of bonus in the past financial year.

Commenting on the findings, Ryan Johnson, vice-president of research at WorldatWork, said: "In terms of recent incentive plan payouts, organisations in the UK appear to have a wide variance of results, with 41% indicating their incentive or bonus schemes paid out at or above the target level. Conversely, 34% said their payout was either below target or that no bonus was paid at all. This is indicative of the wide-ranging effects that the economy is having on different organisations, where some appear to be thriving or at least recovering, while others remain in deep distress."

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Title: “The problem with pay”, HR magazine, 17 January 2011.

Survey sample: HR magazine surveyed 313 business people with a responsibility for HR in their organisation, using an online poll, between September and November 2010. Respondents represented “all sectors of the economy”.

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