Performance strategy | How do we move forward with pay and reward in 2021?

By Hannah Bateson, Content Executive, Clear Review

Nobody will be shocked to hear that the Covid-19 pan­dem­ic has had a huge effect on organ­i­sa­tions across the world.

For many this has includ­ed their pay and reward process. A lot of com­pa­nies have oper­at­ed using a bonus scheme, e.g. if you reach your allo­cat­ed tar­gets through­out the year, we’ll give you a bonus. How­ev­er last year changed things, many organ­i­sa­tions had to shift their pri­or­i­ties, mean­ing rank­ing and reward­ing employ­ees took a back seat to ensur­ing well­be­ing and pro­duc­tiv­i­ty whilst remote work­ing. But if all goes as planned, in 2021 organ­i­sa­tions will start return­ing to some form of nor­mal­i­ty and employ­ees will expect that their pay and reward scheme will be re-instated.

But before you sim­ply put back in place the exact same pay and reward sys­tem you were using before the pan­dem­ic, it might be a great oppor­tu­ni­ty for your com­pa­ny to make some much need­ed improve­ments. In the recent 2021 Per­for­mance Man­age­ment Report com­mis­sion by Clear Review, 0% of HR direc­tors said pay and rat­ings should be a main focus of per­for­mance man­age­ment, while 46% said pro­duc­tiv­i­ty and engage­ment should be the focus (read the report to find out more). So how do you shift the focus away from rat­ings and pay and onto pro­duc­tiv­i­ty and engage­ment while still reward­ing high per­form­ers? In this blog we will explore this while look­ing at sim­pli­fi­ca­tion, fair­ness and recognition.