Merit pay is now prime way to reward staff

first_img Previous Article Next Article Comments are closed. Merit pay is now prime way to reward staffOn 30 May 2001 in Personnel Today Related posts:No related photos. Performance-related pay has overtaken profit-related pay as employers’preferred method of rewarding staff, according to recent research. Recruitment consultancy Select’s Appointments Salary and Benefits Surveyfound that 64 per cent of companies operated a performance-related pay schemein 2000 compared with 36 per cent in 1999. Only 29 per cent of companies still offer profit-related pay. There has also been a significant increase in the number of companiesoffering flexible working hours – 38 per cent compared with 22 per cent twoyears ago. There was little change to non-financial benefits such as opportunities forsecondment, career breaks, and working from home. However, the public sectorwas found to offer non-financial incentives that were significantly higher thanthe national average. Diane Martyn, managing director of Select, said, “Businesses are tryingto become more ’employee-friendly’. By offering a wider range of benefits theyare creating a culture that will help them to attract and retain staff.” It was found that 32 per cent of firms offer the opportunity to work fromhome, and holiday entitlement remained at an average of 23 days per annum. Access to the Internet is provided by 80 per cent of firms but only 27 percent restrict staff use at work. The survey used data from more than 450companies employing almost 400,000 staff across 18 industry sectors. read more