2. Recruitment and retention
Whilst job losses and furloughing employees are widespread, and working from home is the current situation for the vast majority of employees, some respondents have pointed to the opportunity to attract talent regardless of location and even accommodate returning employees to the business. Whilst our autumn 2019 Reward Management Report reported that 55 per cent expected to have trouble retaining employees in the coming year, this has now dropped to 43 per cent anticipating retention challenges. Similarly, two thirds expected to experience recruitment challenges in the coming year, but this has dropped to one third. Crucially, 95 per cent of employers think that employee opinion and consequent engagement will be driven by their response to COVID-19 and the support they offer their employees.
3. Pay practices will face heavy scrutiny by key stakeholders
Over half of respondents are indicating that internal and external relativities are the two main factors that will dictate pay budgets. With turbulent times in assessing pay action right now, with many job losses (particularly in the hospitality and airline industry where many jobs cannot accommodate remote working), pay and bonuses are of huge importance for workers being furloughed and the executive board being seen to be responsible with their own pay practices in the circumstances. We will also examine the bonus outlook for 2020.
4. We continue to monitor the use of out of cycle pay awards
Cautious pay budgets continue to be supplemented by out of cycle pay increases. However this type of increase not only serves to act as a bridge between constrained increases around 2 – 2.5 per cent and economic pressures; our report will also examine in more detail the role of the supplementary pay increases in relation to internal pay alignment. 84 per cent report using out of cycle pay increases to rectify pay inequality in 2019 and 80 per cent anticipate continuing to do so in 2020. We outline the wider ramifications that this practice has on budget certainty for the year.
5. Gender Pay Reporting continues to encourage transparency
Even though the reporting deadline will not be enforced this year due to the coronavirus pandemic, many employers will have captured this data or be looking to monitor their progress as part of a yearly audit of their practices in promoting diversity and inclusion. Our report will outline the measures companies have in place to scrutinise the demographic make-up of their workforces and how diversity is also specifically championed in relation to ethnicity, age and disability.
Receive a free report and sector analysis
To find out more about the key HR and reward challenges facing organisations, how they are implementing effective strategies to support diversity and inclusion in the workplace and the shape of HR budgets over the next 12 months, answer our survey. You will receive a free analysis of the results when they are published in June. Subject to participation, we will also produce sector reports that compare your industry against the general market practice.
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We understand that some of the information we are asking for may be commercially sensitive. We give you two assurances:
- We will never share your confidential information with anyone else.
- We will only produce an aggregated summary report of the results making it impossible to identify individual answers.
Should you have any queries, or need assistance accessing the survey, please get in touch.