Reward strategies win more admirers

Just under half of UK organisations have adopted, or are in the process of adopting, a written reward strategy, according to the 2005 Reward Management Survey from the Chartered Institute of Personnel and Development.

More than one-third of organisations said they employed at least one person specifically responsible for reward, and the function is predicted to grow in the next two years, according to the survey of reward managers at 477 organisations.

Three-quarters of organisations linked salary levels to the current market rates and almost half said they used individual pay rates or ranges and rewarded employees with bonuses or incentive plans.

The most popular occupational pension arrangement with employers was to provide existing employees with a defined benefit pension (56%) rather than a defined contribution pension (24%). However, in the private sector, more employers now offer a defined contribution plan to new employees.

Fewer organisations are using service-related increments (20%), but more are turning to performance (63%) to set pay rates.

www.cipd.co.uk


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