The aims of reward and pay are to attract, retain and motivate staff. Traditionally, salaries were thought to be what attracted individuals to an organisation, benefits then helped to keep them there, while bonus and incentive schemes motivated them in their day-to-day work.
However, research currently reveals that individuals are attracted, retained and engaged by a whole range of financial and non-financial rewards that can change over time. This is also of use to businesses, as in these economic times a pay rise or bonus scheme may simply not be in the budget.
Charlotte Gallagher, managing director and founder of P3 People Management, spoke to HR Aspects about how to implement a Total Reward Strategy, and what it means for businesses.
“Research has shown that not only do employees appreciate non-financial rewards as much as financial ones, but also that these can change over time depending on their personal circumstances. For instance, people at the beginning of their career may be more interested in gaining access to training and career development. Similarly, in this climate, individuals may be willing to work for lower pay rates if they cannot secure a position or need experience in order to compete in the recruitment market.”
“When implementing, it is important for organisations to establish a reward strategy that clearly articulates the aims of the various reward elements, integrates them in a coherent way, and explains to employees what they can expect to receive and why. Research suggests that a Total Reward Package should relate to recognition for work done, support the work/life balance, reinforce the company culture, encourage employee development and reflect the company environment. Many of these have often been taken for granted and thus not actively managed. Under a total reward policy, all aspects of the work experience are recognised and prominence is given not only to remuneration, but also to less tangible rewards.”
“Some examples of rewards that can go in a package include flexible benefits, access to professional and career development, preferred office space or equipment, involvement in decisions that effect the way work is done, flexible working hours, and opportunities for working from home.”
“However, when considering a total reward package for an organisation, it is worth noting the potential obstacles.”
“Research would suggest that employers believe they are better at integrating financial aspects into a total reward approach, so take time to consider what non-financial elements would work best, and how would you implement and support them. Support is critical – If line managers do not support the organisation’s commitment to total reward (i.e. over flexible working) the approach is likely to fail.”
“It can be difficult to measure or weigh the value of non-tangible benefits against one another, particularly if the aim is to include a numerical value in total reward statements distributed to employees. Be sure to explore the options with your managers and staff to determine what would have the desired effect in your organisation.”
P3’s team of HR consultants boast a collective experience of over 55 years. HR Aspects appreciates the contribution of their founder and Managing Director Charlotte Gallagher.
For more tips on managing staff holidays and entitlement, call P3 People Management on 0161 941 2426.