New research warns UK employers of renewed focus on pay
12 September 2014
British employers quickly need to get a better grip on pay and how it is delivered if they are to attract and retain top talent, according to new research from Towers Watson, a leading global professional services company. Towers Watson EUR(tm)s latest Global Workforce Study shows that just a third of UK employees are committed and focused in their current job and rank their salary as the number one motivation to consider leaving.
The research also provides evidence of continued money worries in the workforce, with nearly half of employees (46%) anxious about their financial future and less than half (42%) feeling what they get paid today is fair.
This news comes as a simultaneous Towers Watson global study of over 1,600 companies confirmed an upturn in the job market. In its GlobalTalent Management and Rewards Survey, 60% of UK employers said hiring activity has increased compared with last year. Additionally, more than half (52%) indicate that employee turnover is rising and that it is becoming increasingly challenging to retain high-potential employees and top performers.
The CIPP supports the findings from Towers Watson. Reward does and will continue to play a significant role in the workplace. It is extremely important employers are transparent with their remuneration packages, for example how many employers advise their employees of their employer pension contributions; this could be due to automatic enrolment or through a pension scheme already in situ, but does form part of their total reward package. The report identifies the pressures on those employees worried about their financial future, where an employer might not be able to provide the pay rises an employee feels they deserve there are other benefits an employer can provide with little cost and admin. The CIPP has started its campaign to encourage all employers to offer saving through payroll for that "rainy day". Automatic enrolment will go a long way to providing an income in retirement but what about when the washing machine breaks down? By employers offering saving schemes such as using a credit union, this will not only help employees save, giving them more financial security but will enable them to obtain competitive loans.
You can find out more about the CIPPs activities in this area here