Flint Bishop

Bosses should reward harder working employees

Pictured above: Paul Finnity

 

Almost three quarters of Derbyshire people are working longer hours in 2011 than they were a year ago, according to a survey by RSM Tenon.

The leading firm of accountants and business advisors found in a poll of 1001 people across the UK, that 70% of respondents are now working more hours per week compared to 2010 and more than the average 31.8 hours per week. 

But few people said they were compensated for their extra hours. Just eight per cent of people say that they receive any overtime payment for any extra hours they work, and only six per cent are given time in lieu.

This change in working culture is highlighted by the fact only seven per cent say they now work fewer hours than in 2010.

Paul Finnity, RSM Tenon's director of the Derby office's recovery and insolvency service line, said: "People are now being asked to do more for less and you could argue that there are several reasons for this. Many companies may have over-compensated for the recession and shed more jobs proportionately than the work they have lost. 

"This therefore causes the remaining staff to be overstretched, and the consequences of that decision are being felt now. Also, many industries, such as the retail sector and the food and drink sector, are really feeling the pinch now, so the workforces are being stretched further to achieve the same results.

"An increase in employees' working hours represents a significant challenge for employers as they have to try and maintain their motivation and retention among staff who are seeing a drop in work life balance but are unlikely to receive a pay increase for their efforts."

With news like this, it's important to make sure that staff feel valued, says  Mike Tuhme, RSM Tenon's director of tax in the East Midlands.

"Whatever the economic climate, committed employees should still be rewarded. Staff who remain in post after difficult times often feel demotivated. Without careful management, talent can be lost just at the point when the company most needs good people.

"Taking time to consider and communicate the value employees receive and perceive will enables companies to be in great shape for the upturn."

Mike says that company bosses should keep communicating with employees about current HR and reward strategies.

"As the economy improves,  the job market will be revived and employees can be tempted away - so employers need to identify key talent and ensure it is retained and rewarded. The value - or appreciation - of a rigid remuneration package will depend entirely on the employee's personal circumstances.

"Allowing employees to shape their own remuneration package by selecting elements of reward that are of most value to them, means that they feel appreciated." 

 

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Article published by Midlands Business News on 20 May, 2011

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