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StrategyStructureCostandRiskFigure1IntegratedstrategymodelExtrinsicandintrinsicfactorsshouldbebroughttogetherTherewardstrategymustsupporttheorganisationsThestrategyneedstobecosteffectiveandsustainableThestrategyshouldminimisethepotentialriskstotheThestrategymustbeownedbythebusinessratherthanThestrategyneedstobeclearlycommunicatedandIdentifyandengagewiththekeystakeholdersEnsurethatthereisaclearandcommonunderstandingofEnsurethatdueaccountistakenofexternalBuildanunderstandingoftherisksthattheorganisationDefnethephilosophyandguidingprinciplesthatwillAnalysethealignmentofthecurrentapproachtorewardEstablishtheprioritiesforchangeassessingthepotentialSetupanimplementationplancommunicationwillClimateTheBusinessCaseRewardStrategyWhatdoesitlookandfeellikeDevelopingYourRewardStrategy6Thecurrentbusinessenvironmentisdominatedbytheimpactoftherecessionwhichhasservedtocreateparticularlychallengingmarketconditions.Ithasalsorampedupthepressureonbusinessestoinnovateandchangeintermsofproductsprocessesandstructure.Therearehighlevelsofcompetitioninthemarketplaceforallofusasweseekthoseideasanddevelopmentsthatwillgiveusacompetitiveadvantageovereverybodyelse.Thereisalsosignifcantcompetitionforthemostablepeopleinwhathasbeendescribedasthewarfortalent.Thispaperissetinthiscontextandconsidersthecasefortakingastrategicapproachtorewardandhoworganisationscandeliverontheirstrategy.Therearevariousstatisticsavailableregardingtheoverallcostsoftheextrinsicelementsofrewarde.g.theyrepresentatleast60oftheoperatingcostsofthebusiness.Whicheverwayyoulookatitrewardisaseriousandsignifcantissueforbusinessesasithasadirectimpactonthebottomline.Youneedtobeabletoharnessthepowerofrewardtobeabletosupportdeliveryofyourbusinessstrategyandensurethatyouaregettingmaximumvalueformoneyoutofthissubstantialandongoinginvestment.TheimportanceofhavinganeffectiverewardstrategyisincreasinglybeingrecognisedbybusinessesandtherehavebeensomeparticularlytellingexamplesofthepotentialconsequencesifyoudonotthemostobviousofwhichisinFinancialServices.Rewardmustservetheneedsofthebusinessandsupportdeliveryoftheoverallbusinessstrategy.Intermsofachievingtheseaimsthegreatestvaluecanbedeliveredwhenalltheelementsoftherewardstrategyareeffectivelyintegratedi.e.whenanorganisationsstrategyforextrinsicrewardsisdirectlylinkedtootherHRstrategiesconcernedwithintrinsicrewardssuchasrolestructuresperformancemanagementemployeedevelopmenttalentmanagementrecruitment.Theseinturnneedtoworkinconjunctionwithotherbusinessstrategies.illustratedinFigure1below.WhilstthereisnosinglerewardstrategytherearesomecommonprinciplesthatapplyinanintegratedwaybusinessstrategybusinessbeingseenasanotherHRinitiativeunderstoodbyallstakeholders.Itisnotappropriatetosimplyadoptanotherorganisationsstrategyandtoexpectthatitwillworkforyou.Theprocesssetoutbelowoutlinesthestepsindevelopingyourownrewardstrategy.theoverallvisionandstrategyofthebusinesswhatthecriticalfactorsarethatwilldrivesuccessandthekeyperformanceindicatorsforthebusinessincludinganyconstraintssuchasbudgetarylimitsconsiderationse.g.theeconomicclimateandregulatorylegislativerequirementssuchastheEqualPayActfacesintherewardarenaunderpinrewardwiththedesiredrewardphilosophyandguidingprinciples.Identifythechangesthatarenecessarytoachievealignmentrisksandexaminingthefeasibilityofdifferentinitiativesbeanessentialcomponentofanysuchplanasitwillbeimportanttotakepeoplewithyouonthisjourney.Itisimportanttoappreciatethatstrategyshouldnotbecarvedintabletsofstone.Organisationsaredynamicentitiesthatneedtobeabletorespondrapidlyandadapttomeetchangingcircumstances.Therewardstrategyneedstobeequallyfexibleandsupportthesechangesratherthanberigid