Businesses must reassess staff reward schemes

Companies are failing to tailor their reward policies towards what their staff actually want, it has been claimed.

Research by HR consultants Penna found that 70% of young employees want a better work-life balance over a high salary, but only 60% of firms are applying this to staff policy.

The findings also revealed that 40% of employers admit to finding it increasingly difficult to attract and retain talented employees.

“A ‘one size fits all’ approach to recruitment and reward is no longer sufficient,” said Anne Riley, managing director of Penna’s recruitment communications division.

“As generation Y becomes increasingly savvy to CSR and work-life balance, they will look closely at these policies when making a choice on where to work.”

Riley said employers needed to step up offerings to keep current employees engaged while simultaneously recruiting new talent.

She added: “Many companies need to review the reward and recognition policies to ensure that they fall in line with what employees really want.”

Other key findings revealed that only 27% of bosses have strategies in place to engage their staff, while a fifth claimed their board did not recognise or support engagement and culture as a retention tool.

Well over half of HR professionals surveyed said they thought CSR and environmental considerations were becoming an important part of reward and recognition strategies.

© Crimson Business Ltd. 2008