"More performances rewarded, fewer costs cut"

Charles Cotton, Reward Adviser (The Chartered Institute of Personnel and Development), detects optimism among employers in 2010

The latest CIPD (Chartered Institute of Personnel & Development) Reward Survey shows a distinct shift in the approach to reward. Charles Cotton says: “Employers seem more confident about the economic outlook in the months ahead and have refocused their thinking with that in mind. Many will be going back to the drawing board to revisit their reward strategies in the wake of the recession and may be keen to link pay more with performance... employers want to ensure that whatever profits they reap in 2010, a better proportion should go to those who have added the most value."

Other findings reveal that there has been a sharp rise in the number of employers operating recognition and non-cash incentive schemes. Four in ten employers (41%) now have recognition schemes such as Employee of the Month, up from 31% last year. The number using non-cash incentive schemes has also jumped from 17% to 30% this year.

Charles Cotton adds: "It's not surprising that these non-cash schemes gained popularity last year, when many employers had limited resources to reward staff. Most will be reviewing their non-cash incentive and recognition arrangements in 2010, and it will be interesting to see if these fall by the wayside when the economy picks up."

Read key findings of the CIPD Reward Survey


CIPD Reward Adviser Charles Cotton will be speaking at the 13th Annual Financial Sector Compensation and Benefits Conference, 26-27 April 2010, in London