The main aim of the CIPD’s research was to provide benchmarking in respect of current and emerging practices and trends in UK reward management.  The key trends are:

Top 3 factors influencing factors are:

  • Organisational ability to pay (78%),
  • ‘Going rate’ of competitors’ pay rises (46%), and,
  • Recruitment & retention issues (45%).

Base Pay:            

The most common criteria to manage individual base pay progression is:

  • Individual Performance (74%),
  • Competencies (64%), and,
  • Market rates (61%).


Variable Pay:     (Individual)

The most common individual performance-related reward schemes

  • Individual bonuses (57%), and
  • Merit pay rises (51%)
  • Combinations schemes (46%)

Variable Pay:     (Group)

The most common group performance related plans are

  • Goal-sharing (53%) and
  • Profit-sharing (40%)
  • Group /Team goals (30%).

Just under half of organisations operate one or more performance-related reward, incentive or recognition scheme.


Source:   CIPD Reward management survey 2014-5 

(Based on 525 respondents from the public, private sector & voluntary sectors)