Developing an Effective Reward Strategy
Comprehensive research in the sector has indicated that having a clear-cut reward strategy will assist companies in obtaining better financial outcomes. A Reward strategy provides a sense of purpose and direction and a framework for developing reward policies, practices and process. Effective reward strategies generally have four components: 1) Clearly defined goals and a well-defined link to business objectives. The costs and the benefits of having a reward strategy must be stated, 2) A well-designed pay and reward plan, tailored to the needs of the organization and its people. The plan should also take account of resource constraints of the company, 3) An effective and supportive set of HR processes to conduct training, personnel involvement from relevant departments such as finance personnel, line managers and supervisors, and a structural-operational system design which defines who will be responsible for the development and implementation of the strategy and the flow process, and 4) Guiding principles of the reward strategy. The reward system ought to fit the culture of the organization, and is unique in cultivating that culture. In this training course, HR participants will develop a reward strategy that is aligned to their organisational business strategy and the purpose of the organisation.