Anecdotal evidence suggests that the annual remuneration review has become a difficult and inefficient process. It is seen as reflecting poorly on the Human Resources department.
There may also be a connection between the adequacy of the annual review process and the effectiveness of performance based pay arrangements. That is, a poor process tends to confirm Management's opinion that the performance based pay plan is not producing the desired outcomes for the organisation.
In 2006 we were commissioned to conduct a survey to assess the extent to which these issues are, or are not, endemic across larger companies. We will be updating the findings late 2008 and will invite respondents to fill out the survey form at that time.