News: Performance Management
Ignoring reward strategies costs firms
22 April 2008
New research has shown that companies are losing money by not implementing a documented reward strategy.
According to a survey of 755 employers by Thomsons Online Benefits (TOB), less than one-third had a formal rewards scheme in place, which resulted in around half of the human resources (HR) departments having difficulty obtaining a sufficient budget.
The research also found that more than 40 per cent of companies were unable to report the costs of their incentives.
Speaking to Personnel Today, Michael Whitfield, chief executive of TOB, believes that reward is one of the greatest costs of any business and that HR professionals must keep track of it.
"As well as ensuring that it has a properly documented strategy, HR must get a real handle on what it is spending and where, so it can evaluate which elements are working and where it could achieve more bang for its buck," he stated.
TOB use both consultancy and technology to improve employee reward plans for businesses.
