The CIPD annual Reward Risks Survey has found that the vast majority of reward professionals remain concerned about the ability of their organisations to manage reward risks.
The survey highlights that many do not consider existing reward practices fair and that line managers have a poor understanding of the concept of reward. Derek Irvine, VP client strategy and consulting at Globoforce, the world’s leading provider of SaaS-based employee recognition solutions, has made the following comments: “The findings of the CIPD’s survey reveal how far UK organisations have to go in terms of harnessing the power of reward. With some managers having a poor understanding of reward, and employees confused about what behaviours elicit rewards, there is clearly much to be learnt.
“First and foremost organisations would benefit from implementing strategic recognition programmes that define and set the parameters for reward. They should be linked to corporate values and objectives, which subtly encourages the right behaviours and fosters desirable working cultures. Executive involvement is also key here, as it can ensure a programme aligns with business and personnel goals and delivers the desired results, for example elevated retention rates and improved engagement”.
Derek concluded: “In difficult and uncertain times such as these, it is absolutely essential that organisations do all they can to ensure that their retained workforce is rewarded through this type of strategic reward programme. By touching the majority of employees, 80 – 90 percent of workers, not just the elite – with regular and smaller rewards, workers feel continually motivated while organisations can keep a lid on their reward budgets.”