Pay and benefits are important in attracting, retaining and engaging employees. A range of options is available to reward workers and recognise their contribution, each with their own opportunities and risks. The most effective reward packages meets the needs of its people, the business, and the organisation’s purpose, culture and performance, in a fair and responsible way.

This factsheet explores the purpose of reward and how employee responses may vary depending on different contexts. It introduces pay structures and levels, considerations surrounding pay awards and factors affecting pay progression. It also describes variable pay and outlines the UK law around pay. Finally, it looks at the role of employee benefits, non-financial rewards and total reward.

Explore our viewpoint on low pay and financial wellbeing and executive pay in more detail, along with actions for government and recommendations for employers.

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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