Rewards and performance management 'need improvement'

Performance management and rewards programmes are in need of improvement across the business landscape, new research suggests.

An international study from Towers Perrin reveals that these strategies at many companies have not kept up with the evolving challenges currently faced by businesses, such as staff shortages and advances in technology.

"Overwhelmingly, we found that companies are making incremental changes in reward and performance management programmes and they're doing so year in and year out," said Jim Crawley, principal at Towers Perrin.

"Our data confirms what amounts to a pattern of tweaking at the edges of programmes, rather than creating the more systemic and integrated approach required to address the scope, intensity and magnitude of change on the business side."

The firm suggests that companies overhaul their rewards programmes "in terms of desired business outcomes" and invest in strategies that will engage their workforce.

Separate research from Towers Perrin revealed that Canadian workers were most satisfied with their rewards schemes at work.