AN ALARMING number of UK organisations do not calculate how much they spend in total on remunerating staff (including base pay, variable pay, benefits and employer national insurance contributions), according to this year’s Annual Reward Management Survey from the Chartered Institute of Personnel and Development (CIPD). Almost half of the organisations surveyed (46%) fall into this category.
The survey shows that voluntary sector organisations are the least aware of their total remuneration spend, with 56% not calculating the full costs of what they offer to staff. Within the private sector, manufacturing/production and private services organisations fair only slightly better, with 48% and 40% respectively not being aware. It is a similarly bleak forecast for public sector employers, with 47% not taking this necessary step.
And of the organisations that calculate the size of their total remuneration expenditure, the vast majority (83%) are unable to break it down into its constituent elements (salaries, variable pay and benefits).
Charles Cotton, CIPD’s Reward Adviser, said: “It is a shame that our survey does not show that the tighter margins associated with the current recession are leading to greater scrutiny around pay and reward. This might have helped organisations avoid some of the job losses and redundancies we have seen recently.”