Merit pay is now prime way to reward staff

Performance-related pay has overtaken profit-related pay as employers’
preferred method of rewarding staff, according to recent research.

Recruitment consultancy Select’s Appointments Salary and Benefits Survey
found that 64 per cent of companies operated a performance-related pay scheme
in 2000 compared with 36 per cent in 1999.

Only 29 per cent of companies still offer profit-related pay.

There has also been a significant increase in the number of companies
offering flexible working hours – 38 per cent compared with 22 per cent two
years ago.

There was little change to non-financial benefits such as opportunities for
secondment, career breaks, and working from home. However, the public sector
was found to offer non-financial incentives that were significantly higher than
the national average.

Diane Martyn, managing director of Select, said, "Businesses are trying
to become more ’employee-friendly’. By offering a wider range of benefits they
are creating a culture that will help them to attract and retain staff."

It was found that 32 per cent of firms offer the opportunity to work from
home, and holiday entitlement remained at an average of 23 days per annum.

Access to the Internet is provided by 80 per cent of firms but only 27 per
cent restrict staff use at work. The survey used data from more than 450
companies employing almost 400,000 staff across 18 industry sectors.

Comments are closed.