Pay and benefits are important in attracting, retaining and engaging employees. A range of options is available to reward workers and recognise their contribution. However, each come with their own opportunities and risks. The most effective reward packages meet the needs of:

  • its people,
  • the business, and
  • the organisation’s purpose, culture and performance.

All in a fair and responsible way.

This factsheet explores the purpose of reward and how employee responses can vary. It introduces:

  • pay structures and levels,
  • considerations surrounding pay awards,
  • factors affecting pay progression,
  • variable pay,
  • the UK law around pay,
  • the role of employee benefits,
  • non-financial rewards and
  • total reward.

This factsheet was last updated by Charles Cotton: Senior Performance and Reward Adviser, CIPD

Charles directs CIPD’s research agenda and public policy on performance and reward. He speaks for CIPD at government consultations on topics such as, pensions, retirement, CEO remuneration, low pay and employee tax.  

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