Bonuses still used to attract staff, says REC

05/06/2009

Companies still use bonuses as an incentive when they look to hire new staff, the Recruitment and Employment Confederation (REC) has revealed.

The practice can be "key to bringing in the business to your company", noted the organisation's director of external relations, Tom Hadley.

Mr Hadley's assessment follows an intense period of public scrutiny of corporate bonus culture, which the Treasury Select Committee considered to be at fault.

"In too many cases the design of bonus schemes in the banking sector were flawed and not aligned with the interests of shareholders and the long-term sustainability of the banks," the committee said.

The REC chief defended the use of bonuses as they provide a flexible way for firms to reward their most industrious employees.

"Performance plays a key part in incentivising, particularly when it's in a sales type environment," Mr Hadley noted.

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