Reward risks are a major concern November 2011
Posted date: 16 November 2011
Managing reward risks is a major concern for nearly
80 per cent of professionals in this field, with appreciation of total remuneration top of the agenda.
80 per cent of professionals in this field, with appreciation of total remuneration top of the agenda.
The annual Reward Risks Survey carried out by the Chartered Institute of Personnel and Development (CIPD) found that an organisation’s ability to achieve a balance between affordability and competitiveness causes anxiety among these experts.
The research reveals a shift in priorities which centres on the perception of fairness. The number one hazard is now seen to be employees not appreciating the value of the total offering, up from fifth place last year. This is reinforced with the risk that reward is seen as not being fair; moving up five places from ninth.
Conversely, issues such as retaining talent and engaging employees have fallen down the list of top 10 dangers, as has the ability of reward to attract key skills.
Charles Cotton, Reward Adviser at CIPD, is unsurprised by trends showing apprehension around budgetary constraints given the current climate. However, the survey does allude to international differences. The UK is focused on aligning reward packages with changing business strategies, while emerging markets in Asia and the Middle East are struggling to recruit and maintain talent.
“For multinational organisations, the challenge is to ensure consistency and equity across multiple locations while taking into account inevitable cultural and economic differences,” said Cotton.
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