How to develop a reward strategy

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    • 1). Decide on the overall objective of your reward strategy. This should bring together financial reward with the other elements that motivate staff. These include recognition, work/life balance, company culture and personal development.

    • 2). Set pay structure and financial rewards to attract and retain the calibre of people your organisation needs to remain competitive. If necessary, benchmark your company's pay and conditions with competitors and other organisations of a similar size. Bear in mind that equity is important to employees, so it's vital to implement fair pay and conditions that adequately reward competence and strong performance. Include prerequisites (perks) such as company cars, employee discount schemes and interest-free staff loans.

    • 3). Survey staff to get their opinions on intangible benefits, such as additional annual leave, flexible working policies, special parental leave and childcare allowances. Never impose a benefits structure from the top down; always involve your employees when designing the policies.

    • 4). Create reward schemes that blend with your organisation's strategic objectives, mission statement and company culture. For example, introduce specific rewards programmes for success in key business areas, perhaps the launch of a new product or for staff who hit specific sales targets.

    • 5). Communicate your organisation's reward scheme across all levels, using team briefings, staff meetings, the company intranet, internal newsletters and staff emails to get the message across to all employees. Communicate regularly to keep reward and recognition at the top of the staff agenda. Publicise success stories, particularly staff whom you reward for particularly strong performance. This can motivate your other employees to high achievement.

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