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Train Line Managers or Lose Profits, says CIPD


Employers must train line managers or lose the return on investment from pay and benefits schemes, says the CIPD.

According to research by the Chartered Institute of Personnel and Development (CIPD), 51% of companies quizzed believe salary and benefits packages are less effective because line manager skills are poor.

Over a third (36%) of companies questioned cited poor communication as a problem while 26% criticised the attitude of line managers.

Charles Cotton, CIPD reward adviser, said that communication and understanding between line managers and staff would improve if they were brought further into the decision making process.

“Line managers are given very little responsibility for determining total reward yet they are expected to communicate it to staff. More involvement of front line managers is needed – both in terms of determining the non-financial benefits (such as training and development and flexible working) and financial aspects of reward, such as pensions and bonus awards.

“This will enable them to understand the pay and benefit strategy and then implement and communicate it effectively."

Despite the surge in benefits offered to employees – 46% of companies plan to introduce new perks in 2006, compared to 16% in 2005. Cotton said that they would be unsuccessful without addressing the training and communication issues surrounding line managers.

“The key is for reward practitioners to get closer to their line managers by giving them the support and training that they need to implement effectively the organisation’s pay and benefits policies and practices and to communicate what employee behaviours and performances the organisation values and how it will reward them.”


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