Debra Corey is Group Reward Director at Reward Gateway, the world’s leading provider of employee engagement technology. Speaking with HR Grapevine, she discusses the importance of developing your rewards programme and improving benefit strategy companywide.
What are the benefits of a strong rewards strategy?
“A rewards programme can be a great way to increase engagement with your staff and show that their work is valued. But offering any old rewards isn’t enough; you need to create a strategy that will resonate with and be appreciated by your employees.
“Let me ask you a question, would you go on a trip without knowing where you were going? Randomly throwing things into a suitcase hoping they’re what you need? Just like packing a bikini for Alaska, offering rewards that your staff aren’t interested in won’t get you anywhere! A strong rewards strategy will have taken into account what really matters to employees, and how that can be used to show that they are valued.
“As written in Armstrong & Murlis’s book Reward Management ‘Reward strategy determines the direction in which reward management innovations and developments should go to support the business strategy, how they should be integrated, the priority that should be given to initiatives and the pace at which they should be implemented’.”
What are the most important things for HR Directors to consider when implementing a rewards programme?
1. Link to strategy
“Think again of the suitcase analogy, and when implementing a rewards programme ask yourself ‘is it what I need for my trip’? For example, if a part of your strategy is to treat all employees the same, then introducing a programme for one population just won’t ‘fit in the suitcase’. Always go back to the strategy, and make sure the link is there.”
2. Value-on-Investment (VOI)
“It’s key to consider if or how your reward programme will deliver a VOI to both your company and your employees. Will the money and time you spend on the programme make a difference, achieve an objective, create value? If you cannot answer ‘yes’ to that question, then it probably isn’t worth implementing.”
3. Focus on communication
“No matter how great your rewards strategy and programmes are, without effective communication you will not achieve your reward objectives. Using the trip analogy, communications is what makes sure you get on the right plane, get to your hotel, etc. Without it, you may have an amazing trip planned, but it will never be experienced!”