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Reward Strategy & Total Reward

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If you need support in defining, communicating and implementing a new Reward Strategy, or you want to know more about how Total Reward can help your organisation, or are interested in finding out more about research techniques that can help you measure employee commitment and satisfaction with the reward package, please contact us.

Over the years the CIPD’s annual “Reward Management Survey” has shown that a remarkably small number of organisations actually have a clearly defined Reward Strategy. Indeed this is even more surprising with the abundance of Total Reward and Employee Engagement models that have been published. A simple overview example of which is shown in the illustration below.

Many organisations think they have a Reward Strategy, but often this is not written down. This in turn means it cannot be communicated, hence it is not understood and ultimately employees make up their own minds about what kind of Reward Strategy the organisation has.

Reward Strategy sits at the heart of all reward activity. It is essential to ensure your people understand and appreciate their package in its entirety, not just the cash elements. When you deliver all of the elements of Total Reward, employees will experience increased satisfaction with the package, increased engagement with your business and its objectives and ultimately, as can be proven by research in a number of blue chip organisations, improved customer service and higher levels of business performance.

Total Reward IS your people proposition, joining as it does all the elements your employees need to have in order to engage with their job and your business. It can be used as the yardstick for measuring the effectiveness of most HR activity.

Measurement

One of the criticisms often levelled at HR functions is that they fail to measure the effectiveness of what they do. HR measures tend to be “lag” rather than “lead” orientated. In reward work every input and output should be linked to a cost/benefit. This enables focused debate at Board and Executive Board level and demonstrates how HR can fundamentally contribute to the bottom line.

From the design of employee opinion surveys, to more sophisticated research techniques aimed at establishing employee segmentation based on a complex mixture of engagement, demographic and value characteristics, we can help can help you really understand the effectiveness of your package.

Paul has been fortunate enough to work with some of the most respected organisations in the country in developing one of the most sophisticated approaches to reward research and Employee Segmentation currently available. Whether you are seeking to reduce costs, improve ROI, or strengthen your package in order to attract and retain employees, these techniques should form a vital part of your approach.

The time and money spent on this type of research will be more than repaid via improved ROI, employee satisfaction and business performance.

Reward Communication

To paraphrase Michael Porter - An “A” class communication of a “B” class benefit is much better than a “B” class communication of an “A” class benefit.

Communication is the lifeblood of all HR activity. Managing Director Paul Bissell has won many awards for reward communication. His experience encompasses all types of media and was instrumental in the creation of a unique integrated reward platform for online reward communication and benefits management at Nationwide Building Society.

A comprehensive Reward Communication Strategy should include a “communications calendar” at the heart of which should be a Total Reward Statement. A document and/or an online statement that fully articulates the Total Reward elements. Without this type of approach employees often fail to make the connections between the different elements of their package. As a result they will fail to appreciate its true value and ultimately benefits which are not appreciated are a waste of money!