employee attitudes to pay 2010

8/6/2019 Employee Attitudes to Pay 2010

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Annual Survey Report 2010


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ContentsBackgroundandobjectives Slide3Samplebreakdown Slides4Redundancy Slides56Satisfaction

with

pay

Slides

7

21

Communicatingchangesinpay Slides2226Payincreasesin2010 Slides2732Cashbonuses Slides3339Communicatingchangesinbonuses Slides4043Howemployeeswouldliketobepaid Slides4445Measuringperformance Slides4647Employeefeelings Slides4849Lifestyle Slides5052Conclusion Slide53RegionalAnalysis 2 Slides5457


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Background&ObjectivesTheCharteredInstituteofPersonnelandDevelo ment CIPD isthe rofessionalbod involvedinthemanagementanddevelopmentofpeople.TheCIPDconductresearchonaregularbasisonsubjectsrelevantandtopicaltotheHRcommunity.

s st e

t r waveo researc among emp oyeesto ent y

t e rop n onsan a tt tu estowardspayandbonuses.

buildsonthepreviousdatacollected.Thiswaveincludesnewquestionsrelatingpayrises,cutsandfreezesandhowemployeesarecopingwiththecurrenteconomicenvironment.Theresearchfocussedonareassuchas:

TowhatextentUKorganisationsexplaintoemployeeswhatisexpectedfromthem

Howpay

rises

and

bonuses

are

determined

and

communicated

to

employees

Howsatisfiedemployeeswerewiththeirpay,andhowtheythinktheycomparetothe

market

3


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SampleBreakdownKeyGroups N %

All working 3083 100

KeyGroups N %

MiddleManagementandabove 997 32Men 1771 57Women 1312 43Fulltime 2691 87

Juniormanager/teamleader/supervisor 799 26Nomanagerialresponsibilities 1199 39

Parttime 392 13PrivateSector 2278 74

Other 60 2Workinglessthanoneyear 356 12Workingbetween1and5years 1195 39

Otherpublicsectoremployer 549 18Charity/VoluntarySector 189 6

Workingover5years 1531 5018to24 99 325to34 834 27

Microorganisation(2to9) 349 11Smallorganisation(10to49) 436 14Mediumorganisation(50to249) 443 14

35to44 762 2545to54 723 23

Largeorganisation(250+) 1749 57 55+ 665 22

4


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SalaryafterbeingmaderedundantMedian25% Median20%

Pleasenotecautionshouldbetakenduetosmallsamplesizefor2009and2010figures:

2009:69employeesmaderedundant,46employeesearninglessafterredundancy

2010:66employeesmaderedundant,42employeesearninglessafterredundancy

Similarto2009,twothirds(64%/n=42)ofemployeeswhoweremadeearninglesscomparedtowhattheyusedtoearn.

On(median)averagethesepeopleareearning20%lessthanwhattheydidpreviously.

Justovertwointenareearningmore n= ,an n= thesameastheywerebeforebeingmaderedundant.

Base: Allwhohavegotajobinthepast12monthssincebeingmaderedundantandnowearnless

6 *Cautionsmallbasesize


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BreakdownofEmployeepay Since2008therehasbeenasignificantdecrease

intheproportionofrespondentswhohavereceivedapayincrease,fallingfromtwothirds67%)in2008tohalf 49%)in2010.

Likewise,thenumberofemployeeswhohavehadapayfreezehasalsobeenontheupwiththefigureincreasingby20percentagepoints . freezein2008,by2010thisfigurehasalmostdoubled(44%).

Althoughtheproportionwhohaveseenapay2009

(3%

to

5%)

it

has

remained

consistent

this

year.

Withcutsoccurringacrossthepublicsectoritisnotsurprisingthatthenumberofrespondentslikelytoreceiveapayriseinthepublicsectorhasdecreasedsignificantlyfrom76%in2009to42%in2010.

Whilethepublicsectorarefacingcuts,respondentswithintheprivatesectorweresignificantlymorelikelytoreceiveapayrisein2010thantheywerein2009(50%comparedto40%).

Base:Allworkingrespondents(excludingowner/proprietor)whohavebeenintheirjobformorethanayear

8


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NetSatisfaction1 pay risen=1341n=1123

n=90n=66

n=186n=120

n=188n=138

n=829n=776

n=1009n=648

n=210n=342

Base:Allworkingrespondents(excludingowner/proprietor)whohavereceivedapayriseinthelast12months

Netsatisfactioniscalculatedbysubtractingthepercentage of employees satisfied from thepercen age w o are s s a s e . e scores havebeenproducedforkeyinterestgroups.

While last year the proportion of employeeswhoweresatisfiedwiththeirpayrisedoubled

,beennochange(+61).

Despite overall net satisfaction scoresremaining more or less similar there is anincreased

slightly:

Microorganisationsincreasedfrom+80%to

+86% Smallorganisationincreasedfrom+77%to

+84 Mediumorganisationsincreasedfrom+68%to

+76%

Nonetheless,respondents

working

within

large

receiveapayrise,despitebeingleastsatisfiedwithit(net+54).

Threefifths(59%)ofrespondentsworkingwithinlargeorganisationfallintotheprivatesectorw t nt esamp e,w c cou poss yexplainwhytheyaremorelikelytoreceivepayrises.Thedissatisfactioncouldstemfromthepublicsector,whichmakesupathird(32%)oflargeorganisationswithinthesample.9


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3

NetSatisfaction2 pay risen=1341n=1123

n=570=

n=771n=597

n=393n=353

n=382n=315

n=533n=356

Base:Allworkingrespondents(excludingowner/proprietor)whohavereceivedapayriseinthelast12months

Womencontinuetobemoresatisfiedwiththeir a risethanmen althou htheirnetsatisfaction score has decreased by 3percentagepoints.

Despite this shift, women were just aslikelyasmentoreceivepayincreases(50%comparedwith48%respectively).

Middle managers and above continue tomanagement and those with nomanagerialresponsibility to receiveapayrise. However, satisfaction among thosemiddle managers who receive a pay risecontinues to increase (+72 in 2010compared

with

+68

in

2009).

scores among e sat s act on un or

managers remains the same, satisfactionamong respondents with no managerialres onsibilit who received a risea seems to be decreasing (+59 in 2010comparedwith+65in2009).

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Reasonsfordissatisfactionaboutpayincreasesize

ase: wor ngrespon en s exc u ngowner propr e or rece v ngapayr sew owereno s a s e w Onlyanswercodeswithatleast10%responsein2009areshown

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NetSatisfaction1 pay freeze Therehasbeennosignificantchangeinlevelof

satisfactionamon thosereceivin a a freezehenceasimilarnetsatisfactionscore: In 2009 37% were satisfied and 60% were not

satisfied. This year the figure is 35% and 61%respectively. Netsatisfactionscoreshavedeclinedacrossall

organisation sizes, except larger organisationswherethescorehasimprovedfrom48to38.

organisationsweredissatisfiedwiththeirfreeze,in 2010 this figure reduced to 67% henceimprovingthenetsatisfactionscore.

organisationsseemleastdissatisfiedwithapayfreeze as their netscore drops20 percentagepoints

to

26.

espon en s wor ng w n e pu c sec or

continuetobe lesssatisfiedthantheirprivatesector counterparts, with a net score of 32,comparedwith24. Nonethelessthegapbetweenthesectorsseems

tobenarrowing.14


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NetSatisfaction2 Pay freeze Similar to 2009, with the exception

of middle managers and above, allgroups had negative net satisfactionscores indicating that they weredissatisfied with their organisationsdecisiontogivethemapayfreeze. Despite having a positive net

satisfaction score, satisfaction formiddle managers and abovedecreasedfrom+8to+2.

Women continued to be moredissatisfiedwiththeirpayfreezethanmenwithanetsatisfactionscoreof28. However dissatisfaction amon men has seemed to increase whileamong women it seems to havedecreased.

satisfaction score of 36, this hasimprovedslightlyto28.

Men on the other hand had a netsatisfaction of 13 which has onedownto25.

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Reasonsforsatisfactionaboutapayfreeze

Base:Allworkingrespondents(excludingowner/proprietor)receivingapayfreezewhoweresatisfiedwithitOnlyanswercodeswithatleast10%responseareshown

*Cautionsmallbasesize16


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Reasonsfordissatisfactionaboutapayfreeze

Base:Allworkingrespondents(excludingowner/proprietor)receivingapayfreezewhowerenotsatisfiedwithitOnlyanswercodeswithatleast10%responsein2010areshown17


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Reasonsfordissatisfactionaboutapaycut

Base:Allworkingrespondents(excludingowner/proprietor)receivingapaycutwhowerenotsatisfiedwithit(n=89)**Caution:Lowbasesize

Top5responsesareshown18


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Causesofdissatisfactionwithpay...

Base:Allworkingrespondents(excludingowner/proprietor)(n=3083)

Top10reasonsshown

Respondents were asked what would causebe withthem to dissatisfied their a

(includingbonuses). For the majority (56%), earning less than

people

doing

the

same

type

ofjob

within

their organisation would cause them to bedissatisfied with their job. Respondentswithin the public sector were significantlymorelikelytostatethisthanthosewithintheprivatesector(65%comparedwith53%).

Just un er a sa 48 t e r pay not reflecting how welltheyperformwould leadthem to be dissatisfied with their pay respondents within the private sector weretheir public sector counterparts (52%comparedwith38%).

Athird(32%)wouldbedissatisfiedwiththeirpay if they were earning less than peopledoing the same type of job outside theirorganisationandforoneinfive(21%)paynotreflectinghowmuchmoneythecompanyhasmadewouldalsocausedissatisfaction

were e y t an Men s gn cant y more women to state that pay not reflecting howmuch money the company has made as areasonfordissatisfaction(24%comparedwith17%respectively)19


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Lackofsatisfactionoverall In2010,justunderhalf(49%)receivedapayincrease,twofifths(44%)experiencedapayfreezeand

4%receivedapaycut. Results indicatethatdespitereceivingapayrisesomeemployees(18%)arenotsatisfiedwith it

thekeyquestiontheniswhy? Respondents who received a pay rise were asked to give the main reasons for why they were

dissatisfied: Overhalf(52%)saidItdidnotkeeppacewithincreasesinthecostofliving/inflation Underathird(27%)saidItdidnotreflecthowwellIhadperformedatwork In a t on,one n ve 19 sa t e r pay s e oww att eycou gete sew ere or o ngt e same o

Similartolastyear,themainfactorfordissatisfactionamongthosereceivingapayfreezecontinuestobethatitdoesnotkeeppacewithincreasesinthecostofliving/inflation(53%).WithRPIbeing

. perhapsnotsurprisingthatthiscontinuestobemoreofaconcern.

Amongemployeeswhoreceivedapaycut(cautionduetosmallbasesize),themainreasonsfordissatisfactionwereinflationandindividualperformance:

29%Itdidnotkeeppacewithincreasesinthecostofliving/inflation 27%ItdidnotreflecthowwellIhadperformedatwork

All working respondents were asked how they would be most likely to react if they were notsatisfied with their 2011 pay decision the majority (56%) said they would carry on at work asusual,17%saidtheywouldleavetheirorganisationwithinayearand7%saidtheywouldworklesshard. 20


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LackofsatisfactionPublicVsPrivateSector Due tosmallbasesize, it isnot possible toanalysedissatisfactionamongpublicsector

employees who received a pay rise, however for private sector employees the mainreasonfordissatisfactionwasbecauseItdidnotkeeppacewithincreasesinthecostofliving/inflation(51%)followedbyItdidnotreflecthowwellIhadperformedatwork(32%)andMypayisbelowwhatIcouldgetelsewherefordoingthesamejob(23%).

ot eep ngpacew t t e costo v ng n at onan notre ect ngper ormanceatwor werethesamereasonsgivenfordissatisfactionwithapayfreezeinboththepublicandprivatesectors.

,sector, isthatthepay freezewasbelowthepay increasesofseniormanagement (18%publicsectorcomparedwith8%privatesector).

Respondents working within the private sector who experienced a pay freeze weresignificantlymorelikelythantheirpublicsectorcounterpartstostatetheirpayisbelowwhattheycouldgetelsewherefordoingthesamejob(21%comparedto14%).

It is not possible to analyse dissatisfaction among public and private sector employeesw o receive a pay cut uetosma asesizes, owevert erearein icationst atsimi artopayrisesandfreezesthemainreasonfordissatisfaction isthat Itdidnotkeeppacewithincreasesinthecostofliving/inflation.

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InternalCommunicationaboutpayrise Justundertwothirds(64%)ofrespondentssaidtheirorganisationexplained

ncrease , ecrease or roze. r sa e ro emw y e r pay organisation did not explain it to them and 5% didnt know/ could notremember.

Respondentswhoreceivedapaycutweresignificantlymorelikelytostatethattheirorganisationexplainedtheirdecisiontothemthanthosewhoreceivedapayrise/freeze(82%comparedwith66%whoreceivedapayriseand60%apayfreeze).

Those who received a pay freeze were significantly more likely to state thattheirorganisationdidnotexplaintheirdecisiontothemthanthosewhohadapayrise/cut: 35%ofemployeeswhoexperiencedapay freezesaidtheirorganisation

didnotexplainwhytheyfrozetheirsalary/wagecomparedto29%whoreceivedapayincreaseand17%whoreceivedapaycut.

23

Reasons or a c ange in


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% %

Reasons orac angeinpay

Similarto2009 themostlikel ex lanationforachangeinpay(i.e.increase,freezeorcut)isdueto the state of the economy (47%) followed byhowmuchmoneytheorganisationhastospend41% andindividual erformance 19% .

Whensplitbythethreepaydecisions,themostcommon reason given for a pay rise continues to beindividualperformancewithjustoverathird.

For a quarter (26%) the state of the economywas cited as a reason for a pay rise, while formostithasworkedagainstthem:

70 o respon ents w o rece ve a pay reeze and

63%

who

received

a

pay

cut

said

it

was

a

resultoftheeconomy Similartotheeconomy,theamountofmoneyan

ofsomeandagainstothers: The second most common reason for receiving a

pay rise was how much money the organisationhadtos end 33%

Interestingly, the second most common reason for receiving a pay cut (46%) and freeze (51%) wasalso down to how much money the organisationhadtospend

Base: Allwhoreceivedanexplanationfortheirpayrise/freeze/cut.24


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NetSatisfaction1Explanationforpaydecision

Base: Allwhoreceivedanexplanationfortheirpayrise/freeze/cut.

With a net satisfaction score of +40respondentstendedtobesatisfiedwiththeexplanation given to them by theirorganisationontheirpaydecision.

Despite receiving a pay cut, 46% ofexplanation provided by their organisationcomparedwith35%whowerenot,leavinganet satisfaction score of +11. Employeesw o receive a pay reeze e t e same score(+11)

Inadditiontobeingleastsatisfiedwiththeira decision, ublicsectorres ondentsare

also least satisfied with the explanationaroundthedecision(+24).

The

larger

the

organisation

the

lower

the

sa s ac on score sne poss yindicates that respondents working withinsmallorganisationwerefarmorelikelytobesatisfied with the explanation given thanthoseworkinginlargerorganisations.While94% of public sector employees in oursurveywork for largeremployers just49%ofprivatesectorworkersdolikewise.25


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NetSatisfaction2 Explanationforpaydecision Womenareslightlymorelikelyto

be satisfied with the explanationgiven for their pay decision thanmen (+41 compared to 39 ofmen).

,

managers seem to be lesssatisfied with the explanationgiven to them by theirorganisationontheirpaydecision(+25),whilemiddlemanagersandabovearemoresatisfied(+55).

Base: Allwhoreceivedanexplanationfortheirpayrise/freeze/cut.26


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F P i


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state of t e eco o as ast a t s co t ues to be a t t be t e a

FuturePayrises Mirroring the results from 2008 and 2009, over two thirds (71%) of employees have not

received an explanation detailing what they need to do to receive a pay rise next year.Reasonsforthelackof explanationcouldpossiblyinclude:

difficulty in defining how pay rises are attributed: More employers provided anexplanationastowhat isneededtoreceiveabonusnextyear(59%),comparedtoa.basedontargetsthanbonusesareandasaresultaclearexplanationofhowtoachieveapayrisemaybedifficult.

stateo theeconom :aslast ear thiscontinuestobean issue with itbein themainexplanation around pay decisions (47%). The uncertain economic climate makes itdifficultformanyorganisationstopredictwheretheywillbe,bothfinanciallyandasanorganisation,nextyear.

poorcommunication:objectivesmaybeset,butthesemaynotbecommunicated,ornotcommunicatedadequately.Aslaterslidesshow,satisfactionwithhoworganisationscommunicatehasdecreasedfrom+25in2008to3thisyear.

m ar o as year,m emanagemen an a ovecon nue o es gn can ymore e y o have received an explanation than junior managers and those with no managerialresponsibilities(32%comparedwith23%and20%respectively).

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NetSatisfaction1Explanationfor2011payrises

Base: Allwhoreceivedanexplanationofwhatneedstohappentogetasalary/wagerisein2011*Caution:Lowbasesize

With a net satisfaction score of +58, theproportionofemployeessatisfiedwiththeirexplanation of what needs to happen forthem to get a salary/wage rise hasrema ne esames nce .

While net satisfaction has remainedconsistent in the private sector, nethasdecreasedfrom+47to+35.

The decreasing scores seem to keep in linewithoveralldissatisfactionamongthepublicsec or, owever s may no e surpr s ngdue to thejob cuts within the sector overthelastfewmonths

Duetosmallbasesizesthefiguresneedtobe treated with caution, however netsatisfaction continues to decrease as thesize of the organisation increases withsatisfied with their explanation (net +90)thanthoseinlargeorganisations(+49).

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NetSatisfaction2Explanationfor201161%58%

72%74%

51%46%

61%47%

59%59%

65%57%

Allreceivinganexplaination Since 2008, net satisfaction scores for(2009=710,2010=761)

+65 to +74 while scores for those withMiddlemanagersandabove no managerial responsibilities are at

(2009=326,2010=317)

their lowest (+47, down from +61 in2009and+52in2008 .

JuniorManagers(2009=172,2010=187)

As was reported in 2008 and 2009,m e managers rema n e mos satisfied, however this is not surprisingNoManagerialresponsibility(2009=166,2010=240) astheyaresignificantlymorelikelythanunior mana ers and those with no

managerial responsibilities to be toldMen(2009=413,2010=460) whattodotogetapayrise.

While satisfaction among men hasWomen(2009=297,2010=301)

remained the same, scores for womenseem to have decreased slightly from

2010 2009 .0% 20% 40% 60% 80% 100%Base: Allwhoreceivedanexplanationofwhatneedstohappentogetasalary/wagerisein2011

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PayExpectationin2011 Overall58%ofrespondentsexpectapayrisein 2011. This figure has reduced significantly

fromlastyearwhen67%expectedapayrise. Theexpectationthatemployeeswillreceivea

betterpayrise in2011thantheydid in2010hasdecreasedsincelastyearsresearch(from

. ,shiftedforemployeeswhothinktheywillgetthesamepayrisein2011astheydidin2010with30%statingthis

The likelihood that employees will receive apayfreezehasalsoincreasedsignificantlywith33% expecting this, compared to 25% last

, , remainedconsistent.

Employees in the private sector aresi nificantl morelikel tothinkthe will eta higher pay rise next year than are publicsector employees (24% compared to 9%respectively). However, public sector are e y oemp oyees s gn can y more believe

they

will

receive

a

pay

freeze

(49%

Base:Allworkingrespondents(excludingowner/31 comparedto29%intheprivatesector). proprietor)


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Predictedsizeofpayrise/cutin2011 Of employees who predict a pay rise for

themselvesnextyear,theaverage(median)increase predicted is 2%. A significant Icantpredictproportion(35%)donotfeelabletopredicthowmuchitwillbe.

Privatesectoremployeesaremorepositive

3%onaverage,whencomparedtothoseinthepublicsectorwhoanswered2%.

Middle managers and above predict ag erpayr seonaverageo , ec n ng

in

turn

among

junior

managers

and

employees with no managerialresponsibilities(2%each).

Employees who havebeen in their currentjob for over five years are less optimistic,withanaverageanswerof2%,comparedtothosewhohavebeen intheirjobbetweenforlessthanayear,whoanswered3%.

The average pay cut expected is 10%,although 24% feel unable to predict the

takenwiththesefiguresasthebasesizesisverysmall. 32

t es ze

11%+rise6to10%rise

5%rise4%rise3%rise

2%rise

1%rise

Icantpredictthesize

11%+cut6to10%cut

5%cut4%cut

3%cut

2%cut1%cut

Median2% Median10%Base:Allexpectingapayrisenextyear(n=1819),orapaycut(n=49*)*Pleasenotesmallbasesize


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Breakdown of employee bonuses


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Breakdownofemployeebonuses Justunderathird(31%)ofrespondentswork for

anorganisationthathasacashbonussystem(65%havenot,and4%donotknow).

Privatesectororganisationsarefarmore likelytohave a cash bonus system in place than publicsectororganisations(39%comparedwith10%). Itmorelikelytohavereceivedacashbonus(73%)inthepast12months.

Likewise, largerorganisationsarealsomore likelyto have a cash bonus system in place (37%,comparedto14%ofmicroorganisations).

Theproportionofemployeeswhoreceivedacashbonus in the last twelve months has si nificantl increasedfrom65%to72%in2010. Whilethereisnoevidence,possibleexplanationsforthiscouldbethatthereisapossibleupturnintheeconomy

,pay rises, are a more appropriate way to rewardtheir staff, due to future economic uncertainty.Futurewaveswilldeterminewhetheranincreaseinthenumberofbonusesisatrend.

34Base:Allworkingrespondents(excludingowner/proprietor)

whoseemployershaveacashbonusscheme


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NetSatisfaction2bonus

Base:Allworkingrespondents(excludingowner/proprietor)whoseemployershaveacashbonusscheme&whohavereceivedabonus

As was reported in 2008 and 2009,employees with no managerialresponsibilitythiscontinuestobethe

case

in

2010.

e ne sa s ac onamongm e

managers and above has remainedthe same, net satisfaction among

junior managers seems to haveecrease +66to+58 owevert is

changeisnotsignificant. Middle managers continue to besignificantly more likely to be verysatisfied(33%)thanemployeeswithnomanagerialresponsibility(22).

The net satisfaction score gapdecreased this year with womenholdinganetscoreof+66andmenanetscoreof+61.Futurewaveswilltrend.

36

Bonus (reasons for satisfaction)


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Bonus(reasonsforsatisfaction) Otherthanthestateoftheeconomy,all

reasonsgivenforbeingsatisfiedwiththefor dissatisfaction, indicating manyemployees assess their bonus on a keysetoffactors.

A reflection of performance is animportant reason for satisfaction forthe individual (38%), and the team onet e ess, t ese gures ave. significantlydecreasedsince2009.

Just under one in five (17%) weremore than they received last year, thefirstyearweaskedthisquestion.

A third (29%) of employees felt theirbonuswasinlinewithhowmuchmoneythe company was making, however thisfigure has decreased significantly since. Base:Allworkingrespondents(excludingowner/proprietor)whose

employershaveacashbonusschemeandreceivedabonusandweresatisfiedwithit37 *Notaskedin2009

Topfivereasonsshown

Bonus (reasons for dissatisfaction)


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Bonus(reasonsfordissatisfaction) The top five reasons why employeesaredissatisfiedremainastheywere in

2008and2009 thesizeofthebonusnotreflecting theirperformancebeingtheprimaryfactor.

The next most cited reason for theirdissatisfactionisthatthebonusdidnotreflect how much the company had

One in five felt that their bonus wasbelow that received b more seniormanagement, and 18% felt it did notreflect how well their team hadperformed.

For17%,dissatisfactionsteamsfromagrass is always greener sense thatcouldgetelsewhere.

38

Base:Allworkingrespondents(excludingowner/proprietor)whoseemployershaveacashbonusschemeandreceivedabonusbutwerenot

satisfiedwithitTopfivereasonsshown

Bonuses in the Finance Sector


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BonusesintheFinanceSector Ofthesample193employeeswhowork inthefinancesector,twothirdsworkforanorganisation

thathasacashbonussysteminplace. mong e emp oyeeswor ng ora nanceorgan sa onw acas onussys em rece ve abonus.

Satisfactionishighamongthose100employeeswhodidreceiveabonus(74%aresatisfied,whereas24%aredissatisfied).

Thetopthreereasonsforsatisfactioninrelationtothebonusreceivedare: ItreflectedhowwellIhadperformedatwork ItwasmorethanIreceivedlastyear Among the 24 respondents who were not satisfied with their bonus the top reason for their ItdidnotreflecthowwellIhadperformedatwork

Amongthe79respondentswhoreceivedanexplanationforwhytheyreceivedthebonustheydid Myindividualperformance Howwellmyorganisationhasdoneoverall Myteamsperformance

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Bonusexplanation


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p

Over seven in ten (77%) of respondents said theirorganisation explained to themtheir bonus, 21% said theirorganisation did not explain and2%

do

not

know.

T e exp anationsgiven ort e size

ofbonusreflectthosereported in2008,withthemostpopularbeingorganisational (55%) andindividual performance (53%).While there has been a 5percentage point change since2009 and 2010 regardingorganisational performance thisdifferenceisnotsignificant.

Theteamsperformancecontinuesreasonwith30%statingthis.

Largeremployersseemmorelikelyto highlight the performance ofe r eam an ose wor ng n

Base:Allworkingrespondents(excludingowner/proprietor)whoseSMEs(33%comparedwith23%). employershaveacashbonusschemeandreceivedabonusandan

explanation41

*Notaskedin2008

FutureBonuses


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Similarlyto2009,59%ofUKemployeeshavebeentoldwhattheyneedtodoinordertoreceiveabonusnextyear(61%hadbeentoldin2009). Thisfigureis34percentagepointshigherthanthosewho were toldwhattodoin ordertoreceiveapayrise.Bonusesaremore likely to be based on targets which are easier to measure than individualperformanceandasaresultitcanbeeasierforemployerstoprovideexplanationsofhowbonusescanbeattained.

Yetasignificantproportionofemployees(40%)werenotprovidedwithanexplanation.Aswith a rises, this ma be due to the difficult economic climate in which em lo ersareunabletopredictthemarketandplanahead.

There are no statistically significant patterns who is more likely to have received anexplanation,althoughtherearehigherratesofexplanationsamongneweremployees(whohavebeenattheorganisationforlessthanayear),andmiddlemanagersandabove.

Withanetsatisfactionscoreof+56 overall,respondentsaresatisfiedwiththeexplanationtheyreceived,astowhattheyneedtodotogetabonusnextyear.

42

Predicted size of bonus in 2010


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Predictedsizeofbonusin2010 Similar to last year a quarter of

respondents (26%) do not expect abonus this year, while 28% expect theirbonustobethesamesizeaslastyears.Overa , 62 expect a onus next year, and of these 14% think it will be lowerand20%higherthanthisyear.

Employees

who

expect

a

higher

bonus

next year are more likely to be new employees (36% who have been at theorganisation less thanayear),andmale(22%comparedto16%ofwomen).

Base:Allworkingrespondents(excludingowner/proprietor)whoseemployershaveacashbonusscheme

43


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aid

Onwhatbasiswouldyouideallyliketobepaid?


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e sec orn pr va e emajority (60%) would like to bepaid based on how well theyperformwhileinthepublicsectorthe majority (52%) would like tobe paidon the basis of inflation/cost of living this shows no

. Experience is also an important

factor, mentioned by at least apublicsector.

Public sector employees alsobasisonwhichtheywouldliketobe paid slightly less importantforprivatesectoremployees.

Similarly linking pay to how welltheir organisation or team/ department performs iss igni icant y more important toprivate sector respondents than

45 publicsectorrespondents.Base:Allworkingrespondents(excludingowner/proprietor)


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Satisfactionwithorganisationsabilityto


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g y

Netsatisfactionwith NetsatisfactionwithmeasuringYOURPerformance measuringTEAMPerformance

All(n=3083) +7% +9%PrivateSector(n=2278) +11% +15%PublicSector(n=549) 12% 11%MiddleManagementandabove(n=997) +22% +22%JuniorManagerialresponsibilities(n=799) 1% +2%

Men(n=1771) +6% +7%Women

(=1312)

+8%

+11%

NetSatisfactionscoresaremoreorlesssimilarwhenjudgingorganisationsabilitytomeasureindividualperformance,aswellas theirteamsperformance.

While private sector employees are satisfied with the way their organisation measure both their47 performance and their teams performance, those working in the public sector are more likely to bedissatisfiedwithanegativenetscoreof12 comparedto 11respectivelyinprivatesector.


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Employee feelings

Howdoyoufeel?


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+

y

The chartshowsnetagreescoresthe proportionwho agree with the sentiment minus the proportion who disagree.Overall, net scores have declined since 2008, particularly inrelationtocommunication.employee now than they were last year, in particular publicsectoremployeeswhohadanegativenetagreementscoreof1comparedtoprivatesectoremployees(+12).

Althou hthere isnoevidence thiscouldbean indicationo howrecentpublicsectorjobcutsareaffectingtheworkforce.

Thelikelihoodthatemployeesfeelvalueddeclinesasthesizeofthe organisation in which they work increases, so that employeesinmicroorganisationsreportthehighestnetlevels

ee ng va ue w t no +41 compare t ose argeorganisations+2).Likewisemiddlemanagementandabovefeelfar more valued that those with no managerial responsibility(+28comparedwith+2).

byandproudoftheirorganisation,thaninpastyearswithnetagreementscoresdecreasingforboth.

Communicationwithorganisationsclearlyseemstobeanissuewithneta reementscoresreducin from 25 in2008to3 in2010.

Interestinglywhenaskedwhethertheirorganisationsmademoreorless of an effort to communicate the reasons behind its paydecisionssince2008only7%saidtheiremployerhasmadelessof

.saidtheyhavemadethesameamountofeffort.

Base:Allworkingrespondents(excludingowner/49 proprietor)


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Betteroff?


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The chart shows results for three indicators of whetherrespondents felt better or worse off and if they expectthingstoimprove.Thelabelsofnegativeandpositivereferto outcomes for example positive outcomes are thattheirstandardoflivingishighernowthan12monthsago,they expect standard of living to rise in the next 12

, . It can be seen that the negatives outscore the positives.

Only17%said thattheirstandard of living is highernowthan itwas12monthsagocomparedwith36%whosaidthe were worse off. Similarl 36% ex ected theirstandardoflivingtofallinthenext12months.

Nearly half (47%) stated their standard of living is the samecompared with 12 months ago. This figure is the same forthose who believe their standard of living will remain the

. 45% of public sector respondents said they expect their

standardoflivingtofall inthenext12monthscomparedtoathirdofprivatesectorrespondents.

Interestin l the older the res ondent the more likel theweretostatethattheirstandardoflivingwilldecreaseinthenext12months46%ofthoseaged45to54saidtheyexpecttheirstandardoflivingtofallinthenext12monthscomparedto12%ofthoseaged18to24.

to the next pay day without finding themselves short ofBase:Allworkingrespondents (n=3083)money. Just over one in six find themselves short moreoftenthannot.51

Cutting back to make ends meet


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Cuttingbacktomakeendsmeet Only22%ofrespondentshavenothadtocutbackon

spendingtomakeendsmeetinthelastsixmonths.Theto ten cutbacks that the remainin three uarters ofrespondentshavemadeareshowninthechart.

About half of respondents have cut down on nice tohave things such as DVDs and jewellery. A similarproportionhavecutdownongoingoutwhilejustoverfourin10havespentlessonshoesandclothes.

Women were significantly more likely than men to havespentless onshoesorclothesandnicetohavethings

Threein10havespentlessonbirthdaysandChristmasan over one n our ave cu ac on gas, e ec r c yandoil.

Respondents dont expect things to improve much inthenearfuture.56%intendtomakechangestolifestyle

, ,nextsixmonths.Fourin10(38percent)expecttomakefinancial changes including increasing their overdraft,stopping pension payments and living off savings andhalfsay itisverylikelyorquitelikelythattheywillcutback on day to day living expenditure in the next sixmonths.

Men were significantly less likely than women to usemoneyfromsavingsorinvestments,takeonanotherjobinandfamilyforfinancialhelp

Base:Allworkingrespondents (n=3083)

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Conclusion


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Sincethe2008researchtheproportionofemployeesreceivingapayincreasehasdroppedei hteen ercenta e ointsto49%. Fourinten 44% ofem lo eesreceiveda a freezeinthelastyear.

Theproportionofemployeesreceivingabonushasincreasedfrom67%to72%in2010. Nearl twothirdsweresatisfiedwiththeir a rise net+61 ,andfeltitke t acewithcost

ofliving/inflation.Althoughamongthosewhoweredissatisfiedwiththepayrise,thefactthatitdidnotkeepupwithcostofliving/inflationwasamajorconcern.

Likewise,net+63%aresatisfiedwiththesizeoftheirbonus,withhalfof thesereportingthatitreflectedhowwelltheyhadperformedatwork.

More employeesaredissatisfiedwith theirpay freeze than they are satisfiedwith it (net26).Again,costofliving/inflationiscitedasthemainfactorfortheirdissatisfaction.

mp oyeesareopt m st c a out , w t expect ngapayr sean a onus. Whileemployeesstillfeelproudandmotivated,figuresaredecreasing,particularlyaround

communicationwherethescorehasgonefrom+25in2008to3in2010.Futurewaveswill.

Whatisclearfromthisyearsresearchisthatthepublicsectorisclearlyfeelingthecutswithdecreasingsatisfactionscoresaroundpayandbonuses itseemstheactionstakenbypublicsectoremployersarenowbeingfeltbytheirworkers.

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RegionalBreakdownofEmployeepay


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ApproximatelyhalfofrespondentssurveyedinLondon(52%),Scotland(58%)andWales(47%)receivedapayincrease.Althoughfiguresdifferbetweenthethreeregions,thedifferencesarenotstatisticall si nificant.

JustoverfourintenreceivedapayfreezeinLondon(44%)andWales(47%)andoverathirdinScotland(36%).

Base:Allworkingrespondents(excludingowner/proprietor)whohavebeenintheirjobformorethanayear55

NetSatisfactionLondon,Wales&


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Due to small base sizes within Wales,onl fi ures for London and Scotlandhavebeenanalysed. Inaddition,asmallnumber of respondents received a paycut in these regions, therefore these

gures avea sonot eenreporte . Respondents within London were

significantly more likely to be satisfiedScotland (61%compared with47%)andasaresulthaveahighernetsatisfactionscore.

Withanegativenetsatisfactionsscoreof46, respondents within Scotland werenotsatisfiedwiththeirpayfreeze:

on on were a so espon en s w ndissatisfiedbuthadalowernetscoreof18.

Base:Allworkingrespondents(excludingowner/proprietor)whohavereceivedapayriseinthelast12months(ScotlandPayIncrease=137,Pay

Freeze=80/LondonPayIncrease=174,PayFreeze=15456

ReasonsforsatisfactionaboutpayincreasesizeLondon&Scotland


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London Scotland(n=141) (n=101)

ItreflectedhowwellIhadperformedatwork 29% Itkeptpacewithincreasesinthecostofliving/inflation 25%

elsewherefordoingthesamejob 18%Itkeptpacewithincreasesinthecostofliving/inflation 17% Itreflectedthestateoftheeconomy 23%

ItwasmorethanIhadreceivedlastyear 17% ItwasmorethanIhadreceivedlastyear 19%Itreflectedthestateoftheeconomy 16% Itreflectedhowmuchmoneytheorganisation

hadtomakeanaward 14%

ThetopreasonforwhyrespondentsworkingwithinLondonweresatisfiedwiththeirpay increasewasbecause itreflecthowwelltheyhadperformedatwork(29%)followedbytheirpaybeingabovewhat

.ForrespondentsinScotland,theirpayreflectinghowwelltheyperformedatworkwasalsoamainreasonforsatisfactionbutsowasthefactthattheincreasekeptpacewithinflation/costofliving.

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employee attitudes to pay 2010

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