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Reward failings 'could lead to increased staff attrition'
HR News |
03/09/2010
More HR professionals are concerned about the steps being taken by their organisations to maintain employee morale and ensure high retention rates, a new survey has indicated.
A study of Chartered Institute of Personnel and Development (CIPD) members has found that 15 per cent believe their employers are poorly prepared to handle the staff attrition risks associated with rewards and benefits.
This is up from the nine per cent who expressed concerns last year, alluding to wider fears over the current effectiveness of pay and benefit packages.
HR professionals are also worried about their organisations' level of competitiveness in the jobs market as the economy recovers.
Their ability to change pay and benefit practices, manage reward demands via line managers, and engage employees through incentives were found to be major concerns.
Charles Cotton, performance and reward adviser at CIPD, noted that the past 12 months have been "a turbulent time" for many employers in terms of pay and benefits practice.
"They are fearful that the way that reward helps them attract, retain and motivate their employees is no longer appropriate," he stated.
"While the private sector is concerned that its reward practices will not help them if the economic recovery is sustained, in contrast, the public sector is concerned that its reward practices won't help them as their economy starts to decline."
Back in July, Claire McCartney, resourcing and talent planning adviser at CIPD, claimed that senior management must be open and honest with all members of the workforce if they wish to secure their engagement.
She claimed that the difficult economic climate of the last two years has left many UK workers feeling somewhat undervalued.
Posted by Stephen Wilkinson
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