By Rachel Stone - Head of People Management at Smith & Williamson
How to create a reward strategy which supports your business' culture and goals as an investment, not an expense.
Understand your current reward offering
• The ‘total reward' includes: salary, bonuses, share awards, benefits, pension, life cover, training, career development, company culture and environment
• Identify to what extent the employees understand and how much they value the various elements of their reward
Identify the strengths and weaknesses of what you offer
• Perform a critical analysis of each element of the total reward
• Identify what works well and the ‘sacred cows'
• Establish where reward supports or works against the business goals (for instance, does the bonus award recognise team efforts or just individual achievements?)
Understand the marketplace
• Compare the existing reward package with your competitors; information is available from benchmarking data, new recruits and leavers
• Understand the current trends and offerings, find out what the market leaders are introducing
• Research articles and reports from other organisations
• Obtain employees views
Update your new total reward offering
• Consider how reward can support the business goals
• Consider other areas which may require review to support the reward strategy, i.e. performance management systems
• Obtain employees views and gain acceptance from management
• Bring together the existing elements of reward
Communication and implementation
• Link in with other departments ie Finance, Marketing and HR
• Finalise the design and agree an implementation plan
• Prepare support tools and communications
• Presentations and other communications to employees
• Carry out regular employee and manager reviews
• Review external market data
If you're grappling with any of these or other similar issues, please email
email@example.com or call 0117 376 2066 to find out more.
This article is part of the Entrepreneurs' Toolkit series, produced by Smith & Williamson. More information on this and other toolkit topics is available at www.smith.williamson.co.uk
Watch a video of Guy Rigby, Head of Entrepreneurs at Smith & Williamson, talking about critical success factors.
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