06 Aug Employers failing to measure impact of incentive and reward schemes
Employers who use incentive and reward schemes are failing to measure their impact or align them to business objectives, according to research published today by benefits provider Edenred.
The report, Getting more from employee reward and incentives, found although 49% of employers said their investment was cost effective, more than half (53%) didn’t measure the impact of reward.
The survey of 500 senior reward, benefits and HR directors found less than a third (28%) have a defined strategy in place linking reward and incentives to business objectives. Only 17% said they could make a clear link between reward and business performance.
And less than a quarter of employers (23%) track how reward and incentives contribute to specific business goals.
Colin Hodgson, director sales for incentives and motivation, Edenred, said organisations could do more with their incentive schemes.
“Employee recognition schemes deliver the best results where there is a strategy which aligns the investment to business specific outcomes and provides clarity to managers and employees about the kind of behaviours which will be rewarded,” he said.
The report found one in 10 (13%) employers plan to increase budget in reward and incentives this year, compared to 6% of employers who plan to reduce it.
“In the current environment of budget and performance pressure, every part of the reward mix should be working as hard as possible for employer and employee,” said Hodgson.