Public sector fails to make rewards strategy flexible

A lack of flexibility in reward strategies in some parts of the public sector could restrict the chances of achieving efficiency gains, according to research.

The Chartered Institute of Personnel and Development’s (CIPD) Reward Management Survey 2006 asked respondents to rate their reward strategies against a number of factors. When asked if their strategy was, “flexible enough to change when circumstances require”, public sector respondents rated this requirement the lowest.

Charles Cotton, CIPD reward adviser, said: “Inflexibility can create a barrier to achieving business objectives and cause recruitment and retention problems. This can lead to the reward strategy becoming misaligned over time with business objectives.

“At a time when the public sector faces major changes following the Gershon review, a more flexible approach to reward could be particularly beneficial.”

However, on equal pay, public sector organisations are leading the way. Public sector organisations are more likely to have carried out an equal pay review than their private sector counterparts.

More than half (54%) completed a review in 2005, compared with only 35% of private sector and 30% of voluntary sector organisations.

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