Data from the latest reward management survey conducted by the Chartered Institute of Personnel and Development (CIPD), has shone a light on the impact COVID-19 is having on reward practices in the UK.
The research took place in October 2020, with 420 reward professionals from the private, public and voluntary sectors responding on behalf of their employers. Perhaps unsurprisingly, the findings show the pandemic has generally had a detrimental impact on employers’ finances, with 80% of respondents reporting a negative effect while only 9% said it had improved things financially and 11% felt it had no effect.
In turn, the financial impact felt by employers during the pandemic largely determined the nature of pay awards handed out during 2020. For instance, while only 19% of employers who reported a ‘very negative’ financial impact said they gave all their staff a pay rise, 50% of the ‘very positive’ group did likewise.
Comparing last year’s decisions with predictions for 2021, the research suggests pay awards will be more targeted this year rather than being applied across the whole workforce. Indeed, the percentage of employers expecting to award pay rises only to some employees is predicted to jump from 29% in 2020, to 53% in 2021.
For the latest information on COVID-19 and the measures the government are taking visit the government website.