Rewards 'should be used for retention'
Thursday, 2 July 2009
Companies should use their employee reward packages to incentivise their high-performing workers, it has been claimed.
According to financierworldwide.com, human resources departments should prioritise retaining their existing staff throughout the economic downturn, although firms tend not to have a good track record in this area.
Jon Terry, head of PricewaterhouseCoopers reward practice, added that companies should allocate a larger proportion of their rewards budget to their high-performing employees to encourage them to stay.
However, he also said that firms should reward staff out of merit, not because their workers have grown used to it.
Mr Terry explained: "Companies get into almost a habit of making staff eligible for incentives year upon year, when they should be breaking the habit and deciding whether it is appropriate to make someone eligible for the same incentives."
The news provider also suggested that incentives should be scrutinised to see how effective they are in incentivising their staff.
A recent survey by the Chartered Institute of Personnel and Development found 56 per cent of firms are concentrating their efforts on staff retention rather than recruitment.