According to KPMG’s latest analysis of the UK workforce, the result will mean that 2014 is a year in which the four R’s of reward, recognition, results and retirement will dominate discussions between employers and their employees.
Ingrid Waterfield, director in KPMG’s ‘People Powered Performance’ practice, says:
“Over the past few years economic conditions have meant that pay rises have been a rare luxury, rather than the norm. However, with the jobs market steadily improving, the next twelve months are likely to see greater rewards for hard working, productive, staff as employers try to hang on to their most talented people. 2014 is likely to be remembered as the year pay rises came back into fashion.
“Yet, employers should accept that it will not be so easy to win the commitment of their staff. Increasingly many employees want recognition for the contribution they make in ways that go beyond a monthly paycheque. No one can argue that pay is unimportant, but for some the total value is important, meaning that unless employers offer a broad range of incentives they will struggle to attract, retain and motivate staff in the year ahead.”
Against a backdrop in which a new single tier State pension has been created, auto-enrolment has meant more people are saving for their future, and a new Defined Ambition Pensions Framework has been launched, KPMG’s analysis also suggests that, for many employees and employers, the year ahead will be one in which thoughts turn to retirement planning.
David Fairs, a partner in KPMG’s People & Change practice, says:
“Some may say it is just because the workforce is getting older, but with the introduction of a single tier pension and abolition of contracting out from 2016 and a variety of new types of pension arrangements companies will start to think about where retirement planning fits into workforce management. In order to be ready for the significant changes coming into force in 2016 companies will start seriously thinking about work and retirement planning in a much more holistic way - for many the question will be how to get the right balance between retaining key skills and facilitating retirements for employees at the end of their working life.”
Mike Petrook, KPMG Press Office
020 7311 5271 (t), 07917 384 576 (m) or email@example.com
Notes to Editors:
KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with approximately 11,500 partners and staff. The UK firm recorded a turnover of £1.8 billion in the year ended September 2013. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 155,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.