The Annual Reward Survey 2007 from the Chartered Institute of Personnel and Development reveals that only one third of organisations have a reward strategy and just 55% of these measure its effectiveness. Of those who do measure effectiveness, only 23% link measurement to operational data, leaving most unable to show how their reward strategy achieves one of its main objectives to support the goals of the organisation.Around one-quarter of public and voluntary sector organisations forecast a cut in staff benefit spending this year, compared to just 9% of private service sector organisations and 16% of manufacturing and production.
Cash-based bonus or incentive plans are most prevalent in the private service sector with 88% having plans. This compares to 20% in the voluntary sector and 34% in public services. The most popular benefits that are being introduced are the tax-advantaged childcare vouchers and bicycle loans.
Just over half of employers still make a traditional general annual pay rise or cost of living uplift, though this approach is less prevalent in the private sectors. Only two-fifths of private sector organisations make the annual pay rise, compared to over four-fifths of public service organisations.
The survey is available at: http://www.cipd.co.uk/surveys