The relationship between total reward and employee engagement

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13 / 5 / 2016 9.28am

There is a great deal of interest and discussion in areas of both total reward and employee engagement, but there is also little evidence and research on how the two concepts are linked. 

NHS employers commissioned the Institute for Employment Studies (IES) to review the evidence on the links between total reward and engagement and the findings and implications for employers in the NHS.

Objectives of the report

We have worked in partnership with the IES to develop a report on the findings of the evidence-based review which aims to: 

  • summarise existing research on the links between total reward and employee engagement
  • draw out the implications of our findings for employing organisations in the NHS in terms of how you can use that relationship.
The report also examines how we define the terms total reward and employee engagement within the context of the NHS and looks at the evidence for overall relationships between total reward, employee engagement and their impact on individual and organisational performance. The conclusions from the report suggest total reward can be used as a tool to build employee engagement and improve performance as well as to attract and retain employees.
 

Findings and implications for employers

The report indicates the complexity of the relationships between total reward practices, employee engagement and performance outcomes. The relationships are influenced by a variety of factors that are specific to the organisation and workforce. It is clear that there is no one size fits all approach to reward and highlights the importance of understanding the specific workforce priorities for your organisation, and the diverse needs of your employees. 

Key themes from the review

Our one page summary highlights four key themes and explores the implications for employers in the NHS.

  • Take a broader view on total reward to strengthen the impact on engagement with employees.
  • Communicate your reward offering effectively.
  • There is no one size fits all approach to reward. 
  • The need to be both innovative and evidence-based.
To find out more about our research on total reward in the NHS visit our total reward web page.

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