‘Sloppy’ reward practices changing: Study

Cost containment, performance improvement, engagement top priorities
By Sarah Dobson
|Canadian HR Reporter|Last Updated: 04/04/2010

In many ways, the recession has been a wake-up call for companies when it comes to rewarding employees, according to a study from Hay Group.

During the boom years, “sloppy practice” crept into the reward processes but, with the economic downturn, many organizations have been forced to seriously consider who — and what — they are paying for.

“Before the recession, there were inefficiencies that didn’t play as big a role, even though payroll is by far the largest component of any company’s profit-and-loss statement. But still, the need for the most efficient ROI wasn’t a priority because financially things were generally good,” said Karl Aboud, national reward practice leader at Hay Group in Toronto.