Reward Management Is Playing a Key Role in Recruiting, Retention Efforts

Posted by Talent Intelligence on Fri, Sep 13, 2019 @ 10:09 AM

New hires may make more as a result; current employees could see review timetables change

bethany-legg-75nbwHfDsnY-unsplash-1More than half — 62 percent — of the U.K. HR and finance directors and reward and compensation specialists who participated in Paydata’s most recent reward management survey report they expect to continue experiencing retention issues in the next 12 months.

During the same period in 2018, only 40 percent of organizations anticipated facing retention challenges.

However, in the wake of Brexit’s deadline being extended, business optimism remains steady, according to the survey results. Fifty-seven percent of organizations anticipate revenues will increase, and 50 percent predict profitability will escalate.

While April is generally the most popular month for salary reviews, 81 percent of employers awarded off-cycle salary increases in 2018. Driven by market pressures and internal pay alignment needs, 83 percent say they plan to utilize off-cycle increases again this year.

Some employers have also upped the amount they offer when hiring. Two-thirds of organizations have extended salaries to new recruits that conflict with the pay that’s being given to existing employees. Sixty-nine percent of organizations say they’ve given up to 10 percent more to new hires.

For additional information about how companies are handling salary reviews and hiring offers, view this information about the survey.

Interested in more?  Check out our Thought Leadership!

Topics: General HR Issues, Recruitment

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