REWARD MANAGEMENT
Three in ten employers unable to measure effectiveness of reward strategy
Despite reward professionals still feeling under pressure to minimise costs and improve return-on-investment, a third of companies surveyed by Thomsons Online Benefits are still unable to measure the effectiveness of their reward strategy.
This is just one of the newest industry insights revealed in the seventh Thomsons “Employee Rewards Watch”, in which 436 organisations took part.
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Key survey findings
Reward strategy
More than six in ten respondents (63%) believe it is important to demonstrate a return-on-investment from their reward spend. But 38% report that they “cannot do this very well”.
The vast majority of respondents (80%)) report that their reward strategy “impacts directly on employee engagement”.
Just over a third of respondents (34%) in the financial services sector plan to amend their pay and bonus arrangements based on the new Financial Services Authority Code of Practice. A similar proportion (32%) do not intend to make any changes.
Employee Benefits
Nearly half of respondents either have not measured the success of their benefit package (36%) or do not know if they have (11%).
Less than one in ten respondents (9%) have measured the cost savings generated.
As many as 70% of respondents do not know how much they are spending on their employee benefits.
Reward communications
Although a little over two-fifths of respondents (43%) believe it is very important to brand their benefits package to maximise impact, less than two in ten (17%) have a specific reward brand.
Want to know more?
Title: Employee Rewards Watch 2010, Thomsons Online Benefits. June 2010.
Survey details: A total of 436 organisations participated in the research.
Availability: To request a free copy of the report visit www.thomsons.com/surveyresearch.
Thomsons Online Benefits says: “Since our inception, our vision has been to transform employees' appreciation and understanding of their reward package and to remove the administration and communication headaches organisations suffer as a result of running them.” Further information can be found at www.thomsons.com.