After the dearth of the recession years, employee reward is on the up and compensation and benefit issues are in the spotlight.
For many years salaries have stagnated with few companies being able to offer a pay increase and many making many job cuts. But along with the current buzz of increasing recruitment, pay seems to be top of the agenda with pay awards of around 2.5% being anticipated this year and reward structures being assessed for fit for purpose reasons.
As I blogged about recently there is a skills shortage in the UK so it is important the companies hold onto their talent and make sure they are incentivised. Pay can be a big incentiviser for some, but employee total reward encompasses financial reward with motivational aspects such as career development, job satisfaction and recognition. To retain and recruit talent companies may have to consider paying above the market rate.
Employee reward specialists have always been thin on the ground, but now, more than ever, they are needed to help organisations develop reward solutions to support business strategy. Employee reward professionals can help with employee reward strategy, analytics to assist with pay and benefit reviews, job evaluation which links job size to pay and defends equal pay claims, flexible benefits, salary sacrifice schemes, bonuses, commission schemes and pensions particularly pension auto enrolment.
Total reward statements can help employees to see the full effect of the benefits they receive. So many employees do not understand the benefits a company provides to them. All benefits can be included such as maternity pay, health insurance, employee assistance programmes. Seeing financial employee reward on paper as a simple pie chart or graph can add to employee retention.
It makes sense for employers to reward their staff well to encourage motivation that will impact on the bottom line.