Key points
Reward strategies and benchmarking
In their survey of reward management, CIPD found only around a third of employers had a reward strategy in place. A variety of approaches are being used, with about half of employers applying individual pay rates or spot salaries (49%) with a similar proportion (44%) using broad bands to set pay levels. A quarter (24%) have a more narrowly-graded structure in place.
Companies use a variety of sources for determining how their pay rates do, and should, compare with other organisations. The most frequently used sources of comparison across all levels of seniority are pay surveys. National pay surveys are most frequently used to determine rates for managers and professionals, while local pay surveys are the leading source of information for clerical and manual employees.
Within organisations, about half of employers formally compare levels of pay between employees of different gender, age or ethnic origin to ensure compliance with the Equal Pay Act and Equal Opportunities Commission guidelines.
Forms of reward
Competitive pay and a good appraisal system may be enough to motivate your employees. You might consider linking your appraisal system to decisions about pay, bonuses and other incentives such as share schemes.
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