The current recession has resulted in a sea-change in UK reward, with cash no longer representing the central part of the reward offering for many employers, according to research from consultants Mercer.
Borrowing a turn of phrase coined earlier this year by McKinsey worldwide managing director Ian Davis, Mercer argues that a "new normal" is emerging in reward.
Mercer representative Hannah Perera defines this "new normal" as follows:
Cash, tarnished by the role of bonuses in the economic slump, is no longer king in the eyes of employers. It's being usurped by an emphasis on employee engagement and a focus on motivating specific high value employees. Whether this 'new normal' approach continues when the economy gathers pace again remains to be seen.
The Mercer report is based on responses from 41organisations surveyed in September 2009.
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Comments (1)
Another quote from the Mercer research that is quite true (and quite telling):
"A significantly changed employment deal. It's been a tough year for employees. Trust in and connection to the organization have diminished. Attitudes toward success, rewards and work have shifted. Employers must find ways – within the current cost-constrained environment – to reconnect and reengage their workforces for the challenges ahead. ... Employers today have a daunting task: focusing their limited resources toward reengaging key talent in ways that will drive performance and profits."
As you say, other methods are being found to encourage, motivate and engage employees - including various non-cash recognition and reward schemes. But as global organizations implement these solutions, Mercer raises another challenge - global differences in pay practices, taxation, laws, etc.
Ideas on how to overcome this here: http://globoforce.blogspot.com/2009/10/global-look-at-2010-planning-and.html
Posted by Derek Irvine, Globoforce | November 18, 2009 2:57 PM
Posted on November 18, 2009 14:57