Current Reward in Your Organisation
It may be helpful to consider these questions in conjunction with those on the History of Reward in the Organisation.
Following are some typical questions that can be asked to assist you in understanding reward in your organisation:
- What is included in Total Reward (consider each of the six elements in the Engaged Performance Framework)?
- How does the current total reward system work?
- What should be on the reward menu?
- What is the balance between salary cash, bonus and benefits? How does this vary between different jobs?
- How should pay decisions be made? By whom?
- What are the key motivators for people? Why do they work for your organisation?
- In your view, where are people recruited from, where do they go to? What evidence do you have to support this view?
- How directly should the performance appraisal link to reward?
- How should hard and soft measures be used?
You can use this simple checklist to judge the effectiveness of your current reward strategy:
Total Reward Strategy Delivery
Does your reward strategy...
- Reinforce the achievement of corporate goals?
- Enable the recruitment and training of staff of the required calibre?
- Demonstrate a strong relationship between pay and performance?
- Reinforce organisational objectives?
- Motivate employees?
Is your reward strategy...
- Cost effective?
- Well-communicated, supported and understood by staff?
- Managed effectively in practice by line managers?
- Efficient to operate and maintain?
- Flexible to react quickly to change?
Rate each item on 1-10 scale, where 10 = incredible, 5 = OK, 1 = appalling
(from Brown, D (2001) Reward Strategies: From intent to impact, CIPD, London, quoted in Chapter 3, Armstrong, Michael and Helen Murlis (2004) Reward Management: A Handbook of Remuneration Strategy and Practice, Kogan Page, London)
The E-reward.co.uk website includes an example reward strategy statement for a not-for-profit organisation - see http://www.e-reward.co.uk/
