Boosting pay levels 'a priority for firms'

Mon, 10 Jan 2011

Boosting pay levels 'a priority for firms'

Employers are likely to make ensuring their pay levels are attractive one of their main priorities for 2010, according to a new study.

Research by the Chartered Institute of Personnel and Development (CIPD) revealed that 51 per cent of the companies questioned in this year's Reward Survey cited ensuring reward packages are "market competitive" their main aim.

This was just behind the 52 per cent that said making sure remuneration is in line with the firm's business strategy.

And 44 per cent cited making reward "internally fair" as their main aim for this year.

Reward adviser for the CIPD Charles Cotton said that the results indicate businesses are taking "a distinct shift" in their approach to how they reward their employees.

"Employers seem more confident about the economic outlook in the months ahead and have refocused their thinking with that in mind," he remarked.

Over half of those questioned said that the amount they intend to spend on salaries will rise this year, with 21 per cent predicting pay levels will remain the same and 15 per cent seeing remuneration levels falling.

In addition, more businesses will be using non-cash related incentives in order to encourage their workers to stay on, with 41 per cent now using schemes such as employee of the month in order to retain personnel, a ten per cent increase on the number using this method at the same time last year.

Earlier in the month, Ruth Spellman of the Chartered Management Institute said that businesses will need to ensure they keep hold of their most talented workers if they are to be successful in the current economic climate.

Based on research of a thousand businesses, read more about how nurturing talent amongst your workforce will help you through the current economic climate.