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Ensuring benefits packages remain engaging has become a greater concern for reward professionals than attracting and retaining staff, according to the latest reward risk survey from the Chartered Institute of Personnel and Development (CIPD).
This reveals that 'attraction and retention of key employees' has dropped out of the top ten list of concerns while 'increasing pensions costs' has crept in to the top ten for the first time since the survey began two years ago. This is likely due to automatic pension enrolment kicking in this month.
Overall, reward professionals are most concerned about employees not appreciating the value of the total reward offering. This is followed by 'reward not engaging employees'.
Meanwhile, employee attraction and retention have moved from first and sixth places in 2010 to 11th and 12th in 2012. Yet in the long-term, professionals said that attraction and retention would remain their largest concern in the coming years.
Other 'reward risks' that have moved up the table of concerns in the past year include employees not understanding performance and behaviour requirements. Many are also worried that incentives are not motivating while the ‘inability to communicate desired performance and behaviours' has also been identified as a top reward risk.
“HR and reward professionals need to recognise that there are many inherent risks in how employers reward and recognise their employees,” said Charles Cotton, rewards adviser at the CIPD.
“The profession must act strategically and collaboratively to identify the various ways in which a poorly designed or implemented reward strategy, coupled with external factors such as changes in the economy or regulatory framework, could put their organisation at risk.”