The CIPD’s “Employee attitudes to pay and pensions” survey found that despite 63 per cent of UK workers being optimistic about receiving more money in 2015, the average pay rise has remained at two per cent for two years running. This has left 48 per cent of British people unsatisfied with their employer’s pay decision.
Only 51 per cent of workers received an explanation over the pay decision made by their employer in 2014. These explanations cover both the organisation’s decision to increase, cut or freeze the overall pay bill and the choice to raise, reduce or freeze an individual’s pay. Charles Cotton, performance and reward adviser at the CIPD, said: “This month, many employers will be spending a lot of money on increasing their employees’ pay as part of their annual pay reviews. But to get a return on this investment our research suggests that employees are more likely to be satisfied with the outcome if the organisation takes the time to explain the reasons behind it. “Businesses that are willing and able to have these discussions with workers could find that it pays off in terms of a greater employee understanding of what the organisation is trying to do and what it needs from its employees as well as a greater appreciation of how the business will reward and recognise employee success and achievement. These employers are likely to grow and prosper at the expense of firms that are unable or unwilling to communicate about staff pay. Read more on the importance of communication:- Four keys to increasing your company’s internal communication
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