40% believe UK managers make fair decisions about how performance is linked to pay

Two-fifths (40%) of UK employee respondents think their manager makes fair decisions about how performance is linked to pay, according to research by Willis Towers Watson.

Its Global findings report for the 2016 global talent management and rewards study and global workforce study, which surveyed over 31,000 full-time global employees, including 2,447 UK employees, and 2,004 employers worldwide, including 56 UK organisations, also found that 41% of UK employee respondents believe leaders at their organisation have a sincere interest in employee wellbeing.

The research also found:

  • 37% of global employee respondents are highly engaged with their organisation, and 41% intend to stay with their employer over the next two years by choice.
  • 56% of global employee respondents think their employer should understand them as well as they are expected to understand their business customers, and 39% report that their employers are meeting this expectation.
  • 49% of global employee respondents often worry about their current financial state, and 53% worry about their future financial state.
  • 50% of global employee respondents think they are paid fairly, and 62% understand how base pay is determined.
  • 47% of global employee respondents understand how their total compensation compares to that of a typical employee in their organisation, and 44% understand how their total compensation compares to a typical employee in another organisation with a similar job role.
  • 60% of global employer respondents have a formal process in place to ensure fairness in compensation distribution.
  • 40% of global employer respondents believe base salary increases are effective at driving higher individual performance, and 55% think base salary increases help differentiate pay based on individual performance.
  • 45% of global employee respondents see a clear link between their performance and pay.

Yves Duhaldeborde (pictured), director at Willis Towers Watson, said: “With today’s dynamic business environment and the changing nature of the new world of work, the need for strong, effective corporate leaders and managers working together is at an all-time high. The fact that a significant percentage of [employees] don’t believe their leaders are as effective as they can be is a concern, given that strong leadership is a key driver of employee engagement and improved performance.

“Given the increasingly important role that managers and supervisors are playing in defining the work to be done, motivating [employees] and ensuring a sufficient pipeline, many organisations are taking a keen interest in how manager behaviour affects engagement and how managers can build more engaged teams.”