Employment benefits linked to company objectives, according to CIPD survey
Reward and HR professionals are increasingly focusing on linking-up the employee benefits they offer with their company's commercial and strategic objectives, new research suggests.
The the Chartered Institute of Personnel and Development's (CIPD)latest reward management survey shows that a business concentrating on, for example, delivering a fantastic product or service for customers is statistically more likely to offer benefits linked to employee training and development than those firms focusing on cost.
Such cost-focused firms are, in turn, more likely to make voluntary perks available.
The yearly survey report supplement, Aligning Strategy and Benefits, demonstrates how bosses are also responding to the demographic profile of the workforce by customising the benefits that they have available.
There is a larger rate of membership in defined contribution plans where the staff is comprised mostly of graduates, the study also showed.
This suggests that organisations are either responding to the fact that graduates are more likely to want to take out a pension scheme or are guaranteeing that their plan is well promoted, to attract and keep valuable talent.
In addition, the study finds that there is a robust link between workplace results and openness in employee benefits.
Businesses that favour being more open about their perks scheme are more likely to have excellent staff relations, raised labour productivity levels, lower absenteeism, good worker retention and less pay discontent.
Charles Cotton, reward adviser at the CIPD recommends that HR managers should constantly ensure that the reward provisions they offer in the workplace are in keeping with the changing nature of work.
These are also aligned to both the requirements of business and employees and combined with other parts of people management strategy.
Failure to do so, he says, will end in inappropriate achievements, skills and behaviours being rewarded and recognised.
Mr Cotton said: "What our research helps to illustrate is that HR are not adopting benefits for the sake of it but are choosing those that match what the firm is trying to achieve."
It also shows the effect that staff perks can have in the workplace in terms of employee retention, absence, productivity and relations, he added.
Copyright Press Association 2013