The Changing Face of Reward – implications for HR and reward – ninth in a series
To meet the changing expectations of National employees and in particular of the generation Y demographic, employers will need to conduct comprehensive reviews of total reward not just at the level of policies and practice, but starting from a strategic perspective.
To address this we propose that:
- The start point must be to understand the organisational strategy and goals and to identify specifically how the total reward offer needs to be configured to best enable the delivery of those goals.
- Adopt a clear employee engagement strategy aimed at enhancing the overall employee value proposition
- The organisation must next develop a set of reward principles which encompass each of the main themes that are required to achieve the desired state and then to develop a detailed set of measures (tests) against which to audit the current offer and to conduct a gap analysis.
- The audit should not ignore issues of affordability, no organisation can afford to be a market leader in every aspect of total reward, it is necessary to make informed choices. However a review of key financial ratios and return on reward against competitor or benchmark organisations can provide valuable insight into the current levels of efficiency of the total spend on reward.
- The audit review must explicitly take account of both what the organisation is seeking to achieve from its reward strategy and also what employees are seeking. These two perspectives may sometimes be in harmony but there may also be tensions to be resolved.
- From the strategic review a roadmap should be developed, setting out the desired state and the means of achieving it.
- The review will require sign off at the highest level. This is not just an HR issue but one that needs buy in from the most senior leadership of the organisation.
- Similarly employees need to understand what to expect, once the strategy review is signed off an employee communications programme should be a key priority.
Look out for my post tomorrow when I reveal the key points that you need to keep in mind when conducting a review to make sure it has the most benefit for both the organisation and employees.