March 2, 2022
by Abby
The role of Reward within any organisation is a significant one (Although, we may be biased being called Reward Heads and all). Reward ultimately provides employees with their full financial package within the workplace. From base pay to wider benefits, to even non-cash benefits such as flexible working, the term ‘Total Reward’ is key in attracting, motivating, and engaging employees.
What is Reward For?
An organisation cannot thrive without having the best people in the business. Enabling an organisation to meet its business objectives is what makes it successful. Building Reward around company values and goals helps ensure organisations recruit the right people. It drives growth by keeping employees motivated to achieve goals and ensures these motivated individuals remain within the organisation as they feel their efforts are matched by a well-remunerated and supportive Rewards package.
The Employee Lifecycle and Reward
Reward plays a crucial role throughout the entire employee lifecycle:
- Attraction: Competitive and comprehensive Reward packages help attract top talent. Prospective employees evaluate job offers not just based on salary, but on the total package, which includes benefits, career development opportunities, and the overall work environment.
- Development: Continuous professional development is a significant aspect of Total Reward. Offering learning and development opportunities, career advancement prospects, and mentoring programs helps employees grow within the company, which in turn benefits the organisation.
- Motivation and Engagement: A well-structured Reward system keeps employees motivated and engaged. Regular performance bonuses, recognition programs, and share plans create a sense of achievement and incentivise employees to perform at their best.
- Retention: Retaining talented employees is critical. By offering a balanced mix of financial and non-financial rewards, organisations can ensure employee satisfaction and loyalty. This includes fair pay, transparent promotion paths, and comprehensive benefits packages.
The Importance of Total Reward
Total Reward encompasses the entire package an employee receives from their employment. It goes beyond remuneration and benefits and includes intangible aspects such as the working environment, flexible working, and learning and development opportunities. A holistic Total Reward strategy can significantly enhance the Employee Value Proposition (EVP).
Employee Experience and Employee Value Proposition (EVP)
The EVP represents what employees are buying into when they join a business. It includes:
- Pay Elements: This involves base salary, bonuses, share plans, and financial recognition. Pay transparency and fair pay are essential for maintaining trust and ensuring financial wellbeing.
- Benefits: Beyond the pay-check, benefits such as healthcare, pension plans, and flexible working arrangements play a vital role. Comprehensive benefits support employees' physical, emotional, and social wellbeing.
- Career Development: Employees value opportunities for advancement, training, and career security. A focus on career wellbeing helps employees envision a long-term future with the company.
- Work Environment: A positive work environment that offers variety, challenges, structure, autonomy, and a sense of impact is crucial. Employees need to feel their work is meaningful and contributes to the organisation's success.
- Pride and Culture: Employees take pride in working for a company with strong values, a good reputation, effective leadership, and a positive social conscience. A supportive culture and a sense of community and family wellbeing contribute to overall job satisfaction.
Key Elements of Reward
Reward encompasses various elements that collectively support attracting, retaining, developing, motivating, and driving performance:
- Base Pay: Competitive base salaries are the foundation of any Reward strategy.
- Pensions and Benefits: These provide financial security and support for employees' future.
- Wellbeing: Comprehensive wellbeing programs address physical, emotional, and social health.
- Employee Experience and Recognition: Recognition programs and positive work experiences reinforce commitment and satisfaction.
- Bonuses and Share Plans: These offer additional financial incentives tied to performance.
- Development Opportunities: Continuous learning and career growth are essential for long-term engagement.
Reward is a multifaceted concept that goes beyond just compensation. It is about creating a Total Reward package that aligns with the organisation's values and objectives while addressing the diverse needs and aspirations of employees. By effectively developing Reward strategies, organisations can attract, retain, develop, motivate, and engage their workforce, driving overall success and growth.