How to develop a reward strategy?
Developing a reward strategy is not quite as simple as putting benefits in place and handing them out to employees as and when. Like every other type of strategy, it needs to be well thought out, and strict, clear processes need to be put in place that employees can clearly navigate in order to understand the route to reward.
Firstly, the management team needs to assess what type of rewards people within the organisation will respond well to, and they then need to identify under what circumstances employees will be eligible to receive the rewards. This involves coming up with a list of achievements and behaviours that are determined as reward worthy. These can include closing a certain number of deals, getting a certain number of name-drops in customer testimonials, achieving a promotion, or anything else.
It’s important to remember that when designing a reward strategy, it needs to align with a wider business strategy. This means looking at what your goals for the company are and figuring out how rewarding your staff can help you get there. For example, if your goal is to improve morale across the business, the rewards will need to reflect this, in which case financial incentives could be something to consider.
On the other hand, if your aim is to boost productivity, including flexible working hours as part of your reward strategy and design is a good idea.
Next, there needs to be training given to line managers so that they can accurately identify when an employee has fulfilled the criteria set for receiving a reward as per the strategy. This needs to be consistent for all departments so as not to cause internal rifts between employees.
The final step to creating a reward strategy is to evaluate the programme after it has been in place. This is to see whether it works and if modifications need to be made.