01 April 2011
Companies 'could offer other financial benefits rather than pay rises'
Employers that are eager to avoid grievance cases brought against them by disgruntled workers on the grounds of pay discrimination should consider offering staff potential future financial bonuses linked to the performance of the company.
That is the view of Charles Cotton, performance and reward adviser at the Chartered Institute for Personnel and Development (CIPD), who has said that firms operating under tight monetary constraints in the wake of the worldwide economic slump can provide motivation to employees by giving them an opportunity to benefit from success in the coming months and years.
Mr Cotton explained that this could be an ideal way in which to keep staff engaged and all pulling in the same direction, despite the issues of pay restraint.
For example, he suggested that "in lieu of a pay rise, you could offer them some shares in the organisation".
This comes after the prime minister recently announced that he is backing the new independent Employee Engagement Task Force, which has been designed to help employers make their workforces more engaged.
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Posted by Richard Saunders