2011 left many employees across all sectors dissatisfied with the size of pay rise and bonus they received, with the majority having seen their pay either frozen (48%) or cut (5%), and just 18% having received a cash bonus. That's according to the Chartered Institute of Personnel and Development (CIPD)'s annual survey of Employee Attitudes to Pay, which also found that employees are readjusting their expectations for the coming year in line with the economic climate.

 

Amongst those who did receive a pay rise in 2011, satisfaction levels have dipped slightly since last year but, nevertheless, net satisfaction remains strongly positive (+56 in 2011 compared to +61 in 2010). The main explanation given by employees for being satisfied with their pay rise is that it reflected the state of the economy. Just 19% felt that their pay rise had reflected how well they worked.

 

Charles Cotton, rewards advisor at the CIPD, comments: "It's 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, one of the main reasons cited for dissatisfaction with a pay rise was feeling that it didn't reflect how well the individual had performed. 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."

 

 

Employer pay decisions in 2011:

Cash bonuses:

Satisfaction with employer pay decisions in 2011:

Download a copy of the Employee Attitudes to Pay Report

 

Source