More employers to measure employee engagement against reward

Many employers plan to focus on employee engagement as a measure of reward programme success during the next two to three years, according to a recent survey.

The research, Reward Next Practices, found 57% of 763 organisations polled said they would do this.

"The global downturn has prompted organisations worldwide to shift to an increased focus on how to engage and motivate employees," said Colin Evans, UK head of reward services at Hay Group, which undertook the research with US HR consultancy WorldatWork.

"When times are tough, employers are looking for ways to improve engagement," he added. "It's essential they remember the motivational power of intangible rewards, the role of the line manager in establishing a great work climate, and the importance of communicating effectively with employees."

The survey also found that:

• 44% of respondents plan to use reward to foster a culture of creativity and innovation.
• 67% said they'd make line managers more responsible for managing the 'pay for performance' relationship between employer and employee.
• 60% said they'd focus more on non-financial rewards such as career and development opportunities.

The survey covered 763 organisations in 66 countries. The Hay Group said they included "several" UK companies, plus "many" global organisations with UK arms.