More employers are taking a strategic approach to reward

Employers are increasingly taking a strategic approach to reward, with 35% having done so, so far. A further 40% plan to adopt a strategic approach in the coming year.

The sixth annual Reward management survey by the Chartered Institute of Personnel and Development (CIPD) also found that 41% of respondents have adopted a total reward strategy, while 32% plan to do so in 2007.

More than half (55%) of respondents, meanwhile, claim to measure the effectiveness of their reward strategy.

Where bonuses and incentives are concerned, two-fifths of organisations that currently offer such schemes to make some changes this year. Just under a quarter (23%) intend to introduce another scheme to sit alongside their current arrangements, while 16% will introduce a scheme for the first time.

Non-cash recognition and incentive schemes are offered by 36% of respondents and are particularly popular among private sector employers. Nearly all employers (96%), meanwhile, offer a pension scheme for staff. Just under a third (29%) use salary sacrifice arrangements for their occupational scheme, while the same number automatically enroll employees into their pension plan.

A fifth of respondents, meanwhile, are planning to make changes to their pension arrangements this year, with the most popular options being increasing both employer and employee contributions, and moving to a salary sacrifice arrangement.

What is employers’ perception of reward strategy?
Claim to mesaure the effectiveness of their reward strategy 55%
Have adopted a total rewards approach 41%
Are planning to create a strategy in 2007 40%
Have a reward strategy 35%
Are planning to take up a total rewards approach in 2007 32%

Source: CIPD