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

Continuous updates

• 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
rachel.stone@smith.williamson.co.uk 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

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