Many leading companies are now seeing the reward agenda coming back more strongly onto the table for discussion. Whilst some sectors in the economy continue to struggle, it is widely accepted that as the Irish economy continues to grow, reward pressures will likely dominate discussions in many companies in 2016.
Let’s look at some of the important points that are currently influencing the reward agenda:
• Ireland is the fastest growing economy in Eurozone
• Average pay increase discussions likely to be circa 2.7%
• 37% of companies (250+ employees) have made a counter offer in recent times
• 70% of employees feel they need to move to advance their career
• 26% of employers pay bonuses to employees who fail to meet expectations
(source: CIPD Survey 2015)
The above points should be viewed against the following table which highlights the critical challenges now facing employers:
These figures clearly present a very challenging environment for many employers against a strong growing economy. One element where employers are trying to regain the upper hand is in the area of performance management. A recent survey carries out by Willis Towers Watson in terms of performance management trends highlighted the following:
• The past twelve months have seen unprecedented focus on performance management processes in many companies
• 65% of employers operate a “one size fits all “approach
• 28% of employers do not have effective performance management processes
• 49% of Managers do not see the benefit of performance management
• Some very large corporations (15%) are moving away from the traditional rating scales structures and adopting a rating less approach.
• 61% of companies are planning to make changes to their Performance Management systems
(Source: Towers Watson Survey 2015)
Against the background of all the above points, what will your company do? Will it a) do nothing and adopt a wait and see approach or b) pro-actively take on this challenge and try and regain the higher ground. Many leading companies have already made their decision and are now at implementation stage or beyond.
Niall Glynn & Associates Limited was established in 2010 to provide Business Solutions and HR Advice to companies and Senior Executives.
Our approach is to work closely with Senior Executives in a confidential way and coach them to both prepare and overcome any barriers in terms of achieving their future career goals / ambitions.
We also help SMEs improve their business performance by successfully implementing tailored Core HR Processes and Business Performance Improvement Models.