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Reward packages can leave employees 'confused'

Published: Thursday, 17 January 2008   Category: Professional & financial services | Science, IT and Engineering

Employees are often unclear about what they need to achieve in terms of recognition and reward packages offered, a new survey has found.

The Annual Reward Management survey from the Chartered Institute of Personnel and Development (CIPD) has shown that nearly half of employers no longer award their employees an annual pay rise or cost of living adjustment, reports the Recruiter

Charles Cotton, CIPD's employment conditions and reward adviser, told the website: "Changes to pay and reward packages can often leave employees confused, demotivated and in the dark about what they need to do to achieve reward and recognition."

The survey found that pay budgets are often allocated to department heads to grant to staff based on "individual and or collective contribution" as opposed to an even rise for all.

Mr Cotton stressed that it is important that line managers are sufficiently trained to be able to thoroughly communicate details of pay increases and benefits to their employees.

The CIPD is the professional body for those involved in the management and development of people.

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