Pay matters more than ever

Market-leading research from Randstad continues to show that pay and other benefits are the top criteria for choosing an employer, and that four out of ten employees stay because they are happy with this, while one-third leave because of low pay.

It’s hardly news that pay is of crucial importance, and according to CIPD research, most private sector employees like to see it related to performance. There are deeper issues too: pay can influence employee feelings of pride, value and motivation – i.e. engagement.

This is not just about levels of remuneration, nor how such decisions are communicated (or not, in many cases) but reflect scepticism and some cynicism about how effective employers are at assessing performance, whether of individuals, teams or senior managers.

More employees think their organisation is doing a poor job rewarding performance than think otherwise, says CIPD, and do not think their employer is particularly good at rewarding or recognising success.