UK employee opinions and attitudes towards pay and bonuses

EMPLOYEE ATTITUDES

UK employee opinions and attitudes towards pay and bonuses

A survey of employees by the Chartered Institute of Personnel and Development has found that 60% of private sector workers would like to be paid based on how well they perform. The majority of the public sector (54%) would like to be paid on the basis of “inflation/cost of living”.

A third of survey respondents reported that their employer has a cash bonus scheme. These are substantially more prevalent in the private sector (39%) than the public sector (12%).

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As many as 78% of those employees receiving a bonus were satisfied or very satisfied with its value. Half of those who were dissatisfied felt that the size of the bonus did not reflect their performance.

The survey was carried out by YouGov and examined what UK employees feel is expected of them and how they are subsequently rewarded and recognised. It focussed on areas such as:

  • to what extent UK organisations explain to employees what is expected from them

  • how are pay rises and bonuses determined and communicated to employees

  • the effect of reward and recognition on employee engagement

  • how satisfied employees were with their reward package, and how they think they compare to the market.

Annual pay awards

Some respondents reported that they were unhappy with the size of their most recent pay award. They were asked to give the two main reasons for why they were dissatisfied:

  • Two-thirds (66%) said: “It did not keep pace with increases in the cost of living/inflation”.

  • A third (32%) said: “It did not reflect how well I had performed at work”.

  • In addition, a quarter (23%) said their pay is below what they could get elsewhere for doing the same job.

A separate report examines Irish employees' opinions and attitudes towards pay.

Want to know more?

Title: Pay Management (UK) Survey: Employee attitudes, Chartered Institute of Personnel and Development, February 2009.

Survey sample: YouGov conducted an online survey among 2,600 UK employees.

Availability: To download the 34-page survey, free of charge, in PDF format go to www.cipd.co.uk/subjects/pay/general/_pyattsuk.htm.

The Chartered Institute of Personnel and Development (CIPD) has more than 130,000 members and is the “leading professional institute for those involved in the management and development of people”. To find out more visit www.cipd.co.uk.