Where is total reward when you need it? by Sylvia Doyle, Reward First People Consulting

I'm reading the online news and scanning those fire emblazoned pictures of the pension riots gripping France these last six days. It’s sometimes hard to imagine that the proposed 2-year increase of the public sector pensions’ age to 62 could generate such widespread public anger. But while France’s public sector pension riots touch wider issues, it's clear that pension is a serious business.

On this side of the Channel, it’s less than 2 weeks since Lord Hutton's interim inquiry into the proposed reform of public sector pensions.

Hutton’s recommendations that public sector employee contributions increase and the retirement age to rise from 65 to 67 has met a mixed response. For many in the private sector, the proposed reform is fair. With the value of benefits paid from the 5 largest public sector pensions increasing by 32% over 10 years (to 2009) surely public sector workers need to share the pain? Trades Union responses have been predictably critical of Hutton’s recommendations claiming that 6 million teachers, nurses and council workers will be worse off in retirement. The debate will no doubt be played out over the coming months and feature in the government spending review on 20th October.

However as pensions takes centre stage in media headlines, overtaking the spotlight on bonus awards and executive remuneration, it makes me reflect on the increasing imperative of total reward. While the economic unrest may continue, retaining and engaging high-calibre staff must remain a priority for progressive organisations regardless of sector. Voluntary turnover may be less of an issue in current times however career opportunities still remain one of the top reasons for leaving. Many organisations who adopt a total reward approach reap the tangible benefits of engagement, especially employers in the knowledge sectors.

However total reward is not widespread with only 35% of employers adopted total reward last year according to the CIPD 2010 Reward Management survey. While the survey suggests that some employers may have abandoned total reward, we can expect a reversal of this trend when the economy picks up but will that be too little too late? Or is total reward an unnecessary luxury in these tough economic times?

On the topic of total reward, this will feature in the CIPD International reward forum event on 10^th December. Speakers and case studies are being finalised though it will focus on the challenges of implementing total reward practices across geographies.