| TOTAL REWARD Clear link between engagement and high levels of organisational performance Gone forever are the days when employers could simply throw money at their recruitment and retention problems. Why? Because new generations of employees entering the labour market are now demanding different things from employers and the workplace, says a report by management consultants HayGroup. For Hay, the traditional reward package is slowly becoming a thing of the past. The evolution towards a total reward concept has begun. Writing in the April edition of Benefits & Compensation International, Helen Murlis, a director in HayGroup’ s London office and Steve Watson, head of reward in the UK, urge us to view reward more holistically. Leading organisations adopting total reward approach Increasingly, the emphasis in leading organisations is on a total reward approach, including work environment, flexible working, the opportunity for advancement and recognition, and — most importantly — the leadership and management style of the organisation. The idea is that as employers vie to secure the brightest people they will need to look at more imaginative ways of rewarding their staff. Rather than just offering more enticing pay packages to give them the edge in luring and keeping valued employees, businesses must think about reward in a much broader sense. As Murlis and Watson explain: The monetary values in the reward package still matter, but they are not the only factors. The Engaged Performance Model The Engaged Performance Model is Hay's trademarked approach to total reward design. It is based on the well-recorded experience that satisfied employees are 30% less likely to leave their employer and that satisfaction is significantly related to effective job/person matching and consistent development to raise capability. Hay’ s essential message is that success ultimately depends on a strategy for engaged performance, not mere tangible rewards. In short, managers can improve corporate performance by creating an engaged workforce. As Murlis and Watson write: At its best, the engaged performance reward package creates engaged (enthusiastic and committed) people who perform (skilled and applying their skills) to achieve clear organisational outcomes (results). Hay's model includes six elements:
A final word Cash is a weak tactic in the overall reward strategy: it is too easily replicated. Intrinsic reward is far more difficult to emulate. — Helen Murlis and Steve Watson, HayGroup. Want to know more? Title: Creating employee engagement — transforming the employment deal , by Helen Murlis and Steve Watson, Benefits & Compensation International, April 2001. Availability: Benefits & Compensation International is published by Pension Publications in London, tel: 020 7222 0288. Published since 1971, B& C International now has a readership of multinational corporations and their advisers in 43 countries. Each issue of the magazine features a range of articles, written by experts in the field and aimed at keeping readers up to date on developments around the world highlights of international conferences and shorter editorial pieces on topical events. Jump to . . . www.benecompintl.com Posted 18 October 2001 |