Pay and benefits are important in attracting, retaining and engaging employees and with 6.5 million workers reported to be looking for a new job in 2022, it’s an important time for employers to ensure that they have an effective reward and recognition strategy.
A reward strategy reflects the organisation’s purpose and values, so it is critical that appropriate communications explain to staff what behaviours and performances the organisation is rewarding, how, why, and when.
Whilst pay is important to employees, non-financial rewards are equally as important to employees such as opportunities for personal and career development and flexible working. Employers should find out what attracts, retains, and inspires their current and future people, and explore how best they can meet these needs as well as operating through appropriate legal and regulatory frameworks.
An effective strategy:
- Helps to attract, retain and motivate employees
- Meets both employee needs and organisation priorities
- Enhances the reputation of the organisation by being an employer of choice
- Increases productivity and the bottom line through affecting employee morale and engagement
Key principles of reward strategies:
- Designing pay structure and progression arrangements
- Developing pay policies
- Job evaluation
- Review of total benefits packages
Top Retention Drivers – Employers v Employee View
|Employer view – Talent Management and Rewards Study||Employee view – Global Workforce Study|
|1. Base pay/salary||Base salary|
|2. Career advancement opportunities||Career advancement opportunities|
|3. Relationship with supervisors/managers||Trust/confidence in senior leadership|
|4. Management of work-related stress||Job security|
|5. Learning and development opportunities||Length of commute|
|6. Short-term incentives||Relationship with supervisors/managers|
|7. Challenging work||Management of work-related stress|
Centric HR can help develop a bespoke reward and recognition strategy or review your existing strategy to ensure it is fit for purpose. Please contact us here for more details.