Performance-related pay flourishing
Mon 11 Feb 2008
More private sector employers are introducing performance-related pay, a senior policy advisor has said. Marion Seguret, from the Confederation of British Industry (CBI), said its research has found 27 per cent of employers think this type of reward helps attract staff. "Private sector employers are increasingly linking pay to performance and to local market rates, to reward staff and encourage better results" she said. Recent research from the Chartered Institute of Personnel and Development (CIPD) revealed that almost half of organisations no longer award employees 'across the board' pay rises. However, it also found only one third of employers are confident in their line managers' ability to deliver the appropriate pay messages. The organisation's employment conditions and rewards adviser, Charles Cotton, explained why it is essential to have the correct pay system in place. "How you reward and recognise employees sends a powerful message to employees at all grades about what your organisation regards as important."
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