Reward cost for employees

Well over a quarter of large Australian organisations do not monitor their full expenditure on employee rewards.

Recent research has found that 29 percent of “Top 400” businesses surveyed are unable to report their total employee reward or incentive expenditure.

But, the research also showed that expenditure in this area can be significant - a quarter of the businesses surveyed laid out more than $1million per annum on rewarding staff.

The research was commissioned by specialist Australian employee reward and incentive firm, Accumulate. Over 100 senior executives and human resource managers from around Australia participated in the research.

The research further revealed that 15 percent of the organisations involved in the survey had no formal budget in place for rewards and incentives, even though the total expenditure was often listed in the top 20 expenditures across the business.

Adrian Finlayson, CEO of Melbourne head-quartered Accumulate, explained, “Historically, employee rewards were decentralised so individual managers could ensure that the right employees got the right rewards at the right time. Rewards were seen as a small discretionary expenditure.”

Mr Finlayson added that employee reward and incentive programs have become a key employee benefits tool, with a resultant grown in demand, and that the reporting systems in many organisations have not kept pace.

“Organisations can now utilise technology-based solutions that will record all activity in their reward and incentive programs,” Mr Finlayson said, “This allows for the reliable measurement of program cost and impact, while still giving the level of flexibility and discretion desired.”

For more information about the Accumulate employee recognition rewards programs and software, sales & channel incentive programs or customer loyalty programs call 1300 733 725 or email info@accumulate.com.au