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%).
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)