Employee performance 'must be rewarded' in 2012

It is important that the nation's employers recognise the important work being done by their staff and reward them appropriately in 2012 in order to maintain worker optimism, it has been claimed.

Charles Cotton, rewards advisor at the Chartered Institute of Personnel and Development (CIPD), made the comments after his organisation's annual survey of Employee Attitudes to Pay found that employees are readjusting their expectations for the coming year in line with the economic climate.

Mr Cotton said it is "encouraging" to see that employees recognise the impact the state of the economy has on their employers' ability to reward them with pay rises and cash bonuses.

However, he added: "Employers must try harder to explain what performance the organisation values and how it will reward and recognise this. If not, levels of motivation and productivity could fall, perpetuating a vicious circle that could hold back both organisational performance and wider hopes of economic recovery."

The CIPD report also revealed that 51 per cent of private sector employees had a pay rise since the start of 2011, compared with just 24 per cent of those in the public sector to have received an increase.

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Posted by Richard Esquilant

Filed: 04-01-2012