Can Remuneration & Reward increase commitment and productivity?
Emerging evidence suggests that carefully constructed and simple bonus schemes and incentive initiatives can significantly increase commitment and productivity. They can improve employee identification with the goals of the business and can incentivise improved individual or collective effort and achievement. However, all too often, reward strategies underpin grand plans for business improvement or cultural transformation, only to collapse into under-performance or PR disaster.
So, to what can we attribute this spectacular and almost uniform record of under-delivery? Is it that the concept of reward strategy is too grand, or conceptually flawed? Is it that employers fail to make a sufficiently explicit link between business strategy and reward strategy? Or does effective reward strategy design tend to collapse once it comes to be implemented on the ground?
In this section we look at some of the remuneration choices available to you, critically analyse the main pay practices used by UK employers and highlight some of the mistakes made by employers when divising a reward strategy. This should help you plan and implement a strategy that fits the business, your employees and your future prosperity.
This paper identifies ten of the most common mistakes made by employers as they seek to formulate and implement a reward strategy. The conclusion highlights the main points to consider when devising your own reward strategy and provides useful links to further sources of information.
In this paper we discuss some current practices in the distribution of variable pay, and the extent to which they can contribute significantly to performance improvement among employees.
Here we summarise the main approaches to pay systems design being adopted by UK employers. It is intended as a critical guide for the non-specialist and, as such, seeks to explain why each of the approaches is used and its relative merits.
This example ‘Reward and Recognition Strategy’ outlines: the thinking process behind developing a new strategy; the strategy itself; an evaluation of the strengths and weaknesses of the current arrangements, and; the risks of implementing a new scheme.
Throughout the years a huge amount of money and effort has been put into bonus schemes, profit related pay schemes, incentive schemes and various golden handshake and golden handcuff policies. These are all based on the premise that money is a motivator but is this true?