CIPD offers pay review advice to prevent low employee motivation

Date: 12/01/2011

Get staff pay wrong and you could be faced with low employee motivation, industrial tribunals and a lack of competitiveness, warn experts.

The Chartered Institute of Personnel and Development (CIPD) has urged businesses to carry out pay reviews bearing in mind that paying staff too little can dampen morale, while too much can result in over-expenditure.

Advice on how to manage pay is on offer in a new guide The Pay Review Process, in which the CIPD highlights the importance of effective planning, keeping processes simple and drawing on experience from previous reviews to improve practice.

Charles Cotton, adviser for performance and reward at the CIPD, said: "Too often the annual pay review is seen as a tick-box HR process, rather than a vital business process impacting on organisational strategy, despite the huge sums of money usually involved.

"Get it wrong and it may send out mixed messages on what your organisation values in terms of employee behaviours, skills, attitudes and performances."

Yesterday the CIPD advised the government to keep a fiscal Plan B to safeguard against unexpected job losses this year.

Posted by Elizabeth Mewes

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