The latest research released from the reward experts at Thomsons Online Benefits, Employee Rewards Watch: FTSE 350 2010, shows that Top FTSE companies are more positive about the coming year for their business performance compared to other key markets.
Half of respondents (51.28 percent) cite they are more optimistic about the coming year for their business performance than the wider market, suggesting they may be coming out of recession sooner than smaller companies. This optimism is perhaps a result of adopting a stronger stance to protect their profits throughout the recession.
These are just some of the newest industry insights revealed in the first Thomsons “Employee Rewards Watch: FTSE 350”, in which 39 FTSE listed organisations took part. This is the second of three reports for key market segments.
Key findings for 2010 include:
- In 2009, the majority of FTSE-listed companies reduced their headcount (71.79 percent) and introduced pay freezes (66.67 percent) to reduce costs;
- FTSE-listed companies envisage twice as many mergers and acquisitions than the total market (41.03 percent) and over half are looking at restructuring or outsourcing (56.41 percent);
- Significantly more FTSE-listed companies (51.28 percent) feel it is important to measure the return-on-investment for their reward and benefits than the rest of the market (30.05 percent).
Michael Whitfield, Chief Executive Officer of Thomsons Online Benefits comments “FTSE-listed organisations have shown a stronger stance to protect their profits throughout the recession, and this stance seems to have paid dividends, with more business activity planned for the coming year compared to the rest of the market. The impact of this is likely to include harmonisation and integration of businesses, and generating cost savings by improving business systems and processes.
With increasing pressure being placed on HR teams to control and manage their reward schemes, it is surprising then that only a quarter of FTSE companies know how much they spend on benefits (25.64 percent).
And with many ‘corporates’ needing to demonstrate better governance of risk and cost to their shareholders and other stakeholders, surely this needs to be a priority for HR professionals looking ahead.