New Model Reward Research: Increase in agile workers will impact reward strategies

The rise of agile working is putting pressure on organisations to raise base pay, according to New Model Reward 2017, a new report published by REBA in association with JLT Employee Benefits.

The report suggests that 14.8% of respondents are feeling the pressure to raise pay as the number of contract and freelance workers within the labour force increases.

16% of respondents said that the proportion of agile workers had increased over the last twelve months and 31.5% expected this percentage to increase over the next three years.

Currently 61.8% of respondents do not include agile workers in reward strategies.

Freelancers and contractors employed at relatively senior levels typically demand higher rates of pay to compensate for their lack of sick pay, pension and holiday.

“With the use of agile workers on the increase employers must be clear about how they incorporate such staff into their overall approach to reward in the future,” said Debi O’Donovan, director at REBA.

This is particularly important given the ramifications on other employers of a 2016 tribunal ruling against taxi company Uber where the company’s claims that its drivers were self-employed were rejected. The tribunal said as a result staff were entitled to sick pay, holidays, breaks during the day and pension contributions.

Download the full 46-page PDF report here: New Model Reward research 2017. REBA members access the research for free.

For further in-depth discussion of this topic with senior HR and reward professionals, sign up for REBA's Reward Leaders' Forum on 27 April 2017. REBA Members can attend for free.

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