REWARD STRATEGY
New guide to strategic reward
Strategic reward management is the process of looking ahead at what an organisation needs to do about its reward policies and practices in the middle or relatively distant future. To gain an insight into strategic reward, e-reward.co.uk has published a new guide which examines the purpose and features of reward strategies.
Strategic reward management is concerned with the broader business issues the organisation is facing and the general directions in which reward management must go to provide help in dealing with these issues in order to achieve longer-term business goals. Even if it is expressed in the broadest terms, reward strategy will point the way. But it must be aligned, relevant and achievable, and it should reflect the belief of the organisation that people should be valued and rewarded accordingly and that reward is a key element in its total management process.
Ten reward strategy statements
Reward strategies come in all shapes and sizes. The report includes the reward strategy statements from 10 organisations contacted by e-reward.co.uk in March 2003 (see box below). All these reward strategies are different just as all the organisations are different. Of course, similar aspects of reward will be covered in the strategies of different organisations but they will be treated differently in accordance with variations between organisations in their contexts, strategies and cultures.
Research participants
| Organisation | Business sector | Employee nos. (UK) |
| 1. Abbey National | Financial services | 30,000 |
| 2. Aegon | Financial services | 4,500 |
| 3. Audit Commission | Public sector | 2,550 |
| 4. B& Q | Retail | 25,000 |
| 5. British Airways | Air transport | 52,000 |
| 6. Colt Telcom Group | Telecommunications | 5,000 in Europe |
| 7. Cummins Engine Company | Engineering | 4,000 (24,000 worldwide) |
| 8. KPMG | Professional services | 9,500 |
| 9. Nationwide Building Society | Financial services | 15,000 |
| 10. Somerfield and Kwiksave | Retail | 50,000 |
How widespread are reward strategies?
The available evidence on the extent to which UK employers have adopted reward strategies is limited. One of the few surveys on the subject, undertaken by the Chartered Institute of Personnel and Development, found that almost two-thirds of respondents said their organisation had a formal strategy.
| What you will find in this report |
| This two-part study, researched and written by our in-house reward experts, seeks to provide an accessible and concise guide to strategic reward. Aimed primarily at reward specialists, HR practitioners and all those concerned with reward management, the emphasis throughout is on the practical reality of evaluating, developing and implementing a reward strategy for your organisation. Put simply, our aim is to provide you with invaluable decision-making information on all aspects of developing and implementing a reward strategy. Spread over more than 50 pages, the first part of this study comprises four main sections: |
| 1. Key features of reward strategy, pages 8-30 To gain an insight into strategic reward, this report starts with a definition of reward strategy followed by a description of the purpose and features of reward strategies. Approaches to the development of reward strategies are then considered and the section ends with notes on criteria for effectiveness. We also assess the evidence regarding the prevalence of reward strategies in the UK. |
| 2. Practical examples, pages 31-39 Shows how a range of diverse organisations has articulated their reward strategies. |
| 3. Appendices, pages 40-49 How reward strategies are developed - we take you through the key steps that you should follow to plan and implement a new reward strategy.
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| 4. Resources, pages 50-51 A selection of essential publications on reward strategy. |
| Part 2 of this study, to be published in a forthcoming issue of e-research, examines - via a series of case histories - the approaches adopted by leading organisations to the integration of reward strategies with business and HR strategies. |
Want to know more?
Title: "A guide to strategic reward: part 1", E-research, issue no. 11, May 2003, published by e-reward.co.uk.
Price: The report is available from e-reward.co.uk at £30 + VAT. Or you can receive it as part of an annual subscription to E-research and we will send you 11 issues of our monthly report for £200 + VAT.
Availability: Click on "Research Reports" on the left-hand navigation panel of the e-reward.co.uk web site and complete the simple online subscription form at www.e-reward-data.co.uk/content/ResearchReports.asp
For more details, email: paul@e-reward.co.uk
Posted 10 June 2003