Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

BonusesCompetency-based payHR practicePay & benefitsPerformance management

Building a happier workplace

by Personnel Today 9 May 2006
by Personnel Today 9 May 2006

Paying personal performance-related bonuses is helping employers in the construction industry attract and retain the best staff, according to research to be unveiled next month.

A survey of more than 3,500 construction employees across the UK will show that staff on personal performance-related bonuses were happier, less pressured, liked their managers more and were prouder of their company.

The research, based on data collected from detailed questionnaires by Personnel Today’s sister magazine, Contract Journal, for its ‘Best Places to Work in Construction Awards’, will also show that employees on these bonuses were half as likely to leave in the next 12 months.

The implied turnover rate was 9.5% for those who were on schedule for a bonus, compared with 19% for those not on the schemes, and 15.5%
for the sample as a whole. The results come at a time when firms in the construction industry are struggling to find enough skilled workers to cope with expansion, which has put recruitment and retention high on the boardroom agenda.

According to industry estimates, the construction workforce is set to grow by more than 200,000 over the next four to five years, with projects such as the 2012 Olympics and transport infrastructure improvements driving demand.

Guy Hazlehurst, deputy director of skills strategy at sector skills council CITB-ConstructionSkills, said: “In a tight employment market, employers will need to do all they can to ensure they attract and retain good employees.”

Analysis of the data shows that, on an agreement index – ranging from plus 100 (strongly agree) to minus 100 (strongly disagree) – those on bonus schemes targeting individual performance come out far more positively across a range of work-related issues.

For instance, those with a bonus scheme scored 52.2 on the agreement index when asked if they had confidence in their manager, compared with 33.7 for those that were not in a scheme.

On whether they had a good work-life balance, scheme members scored 34.6 against 22.4.

On enjoying work, they came out 48.1 to 33.2. And on negative questions, the survey found that they disliked their colleagues less, they felt less stressed, and they felt safer in their working environment.

Chris Charman, reward specialist at HR consultancy Towers Perrin, said the results highlighted the need for employers to ensure clear alignment between individual and organisational performance measures.

“We have found that where individual performance-related pay awards are seen as fair and consistent, they do drive employee engagement, and this is linked with improved company financial performance and employee retention,” he said.

But despite the apparent benefits, only 14% of UK employees receive performance-related pay, compared with a European average of 21%, according to research.

The survey of almost 19,000 employees in 12 European countries, by recruiter Kelly Services, found that employees in the financial services industry were the most likely to have part of their salary linked to performance, with more than one-quarter (28%) receiving bonuses. Workers in the education sector were the least likely, with just 5% of employees picking up bonuses.

Find out more

Further analysis of the Contract Journal data will be published this June at a conference to launch the Workforce Futures 2006 report, which explores people issues in the construction sector.

For more information, go to www.workforcefutures.co.uk

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

For more on Kelly Services survey www.personneltoday.com/34657.article

Skills shortages lead to stress for construction workers www.personneltoday.com/34695.article


Personnel Today

Personnel Today articles are written by an expert team of award-winning journalists who have been covering HR and L&D for many years. Some of our content is attributed to "Personnel Today" for a number of reasons, including: when numerous authors are associated with writing or editing a piece; or when the author is unknown (particularly for older articles).

previous post
UK employers encouraged to tackle ageism at work
next post
Dispute prevention: employment tribunals

You may also like

Six ways to kickstart conversations about team stress...

23 May 2025

Public sector workers gain pay rises of up...

22 May 2025

HSBC employees warned of office attendance link to...

22 May 2025

Workplace stress: Why it’s time to rebrand resilience

22 May 2025

Fewer workers would comply with a return-to-office mandate

21 May 2025

Legislation could block bonuses at Thames Water

16 May 2025

Next to improve wage-setting transparency after shareholder pressure

16 May 2025

University of Salford launches Better Working Lives cluster

14 May 2025

Four ways employers can reduce the risk of...

14 May 2025

Senior execs at BlackRock to work in office...

8 May 2025

  • 2025 Employee Communications Report PROMOTED | HR and leadership...Read more
  • The Majority of Employees Have Their Eyes on Their Next Move PROMOTED | A staggering 65%...Read more
  • Prioritising performance management: Strategies for success (webinar) WEBINAR | In today’s fast-paced...Read more
  • Self-Leadership: The Key to Successful Organisations PROMOTED | Eletive is helping businesses...Read more
  • Retaining Female Talent: Four Ways to Reduce Workplace Drop Out PROMOTED | International Women’s Day...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+