Pay audits on the increase

number of organisations carrying out pay audits has grown significantly in the
past year, according to research by the Chartered Institute of Personnel and
Development (CIPD).

CIPD’s annual reward survey of more than 500 organisations, published next
month, will also show that a significant minority of employers plan to raise
their retirement age over the next two years.

findings of the report:

Despite the pensions ‘crisis’, the vast majority of employers still contribute
to the pension arrangements of their employees. However, employers are
restricting final salary schemes to existing staff and introducing
money-purchase schemes for new staff, typically with lower rates of
contribution. Most private sector organisations now offer money-purchase
schemes to new employees.

Many employers fail to keep staff updated about pension arrangements.

Despite cost worries, employers are more concerned with ensuring their benefit
offering (excluding pensions) makes them an employer of choice, with more
employers planning to introduce benefits than reducing them.

‘Cafeteria benefits’, which give employees a choice over the mix of cash and
benefits they receive, are becoming increasing popular among employers.

By Michael Millar

Comments are closed.