HR Magazine, in the UK, noted that their second Reward Survey demonstrated that employee expectations stayed high regardless of the economic downturn. If companies don’t meet these expectations, many valuable staff members could leave to look for greener pastures.
With tentative signs of recovery, talented employees are not as concerned about losing their jobs and will look elsewhere if their contributions to the company are not rewarded.
This current study involved 348 HR professionals and those in charge of benefits. The participants were surveyed and the results showed that 39% of respondents were very concerned about flexible in regard to rewards needed to meet the needs of business for 2010. Twenty-eight percent were more concerned about the flexibility of reward packages to meet the expectations of their employees.
The results also showed that almost half of the respondents “said their main reward issue was base salary competitiveness.”
"This is rather converse - managing expectations seems quite at odds with the macro-economic environment,” explained Paul Banfield, lecturer and programme director in organizational and HR management at Newcastle Business School Northumbria University. He went on to tell the magazine that, “With more jobs losses and issues of underemployment, employees should still be more concerned with keeping their jobs than pressing for more perks."
To add to this, Richard Morgan, Vebnet’s head of consultancy services, told HR magazine, “Staff that feel treated fairly by their employer will be more likely to stay. The world will not stop working if employers don’t put more into reward. But if they seriously want to engage employees and rebuild after recession, they must do better.”
Employers will need to put on their thinking caps and incorporate smaller incentive rewards in place of traditional monetary rewards to keep employees satisfied.