The number of HR professionals that believe that businesses are poorly prepared to to manage the risks around how they reward their staff has grown in the past 12 months, according to a survey by the Chartered Institute of Personnel and Development (CIPD).

The survey found that 15% of respondents think that their organisation is poorly prepared to deal with these risks, up from 9% in 2009.

The findings reveal that concerns about the overall effectiveness of the pay and benefits package to attract and retain key talent has increased in significance over the past year, reflecting concerns that firms have not been competing effectively in the labour market as the economy has started to show signs of recovery

"The past 12 months have been a turbulent time for many employers in terms of pay and benefits practice. They are fearful that the way that reward helps them attract, retain and motivate their employees is no longer appropriate," said Charles Cotton, performance and reward adviser at the CIPD.