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During the preparation phase it is useful to revisit some of the information relating to the organisation’s goals and objectives.
Having an understanding of your key performance goals and how this translates into essential skills, behaviours and actions for staff will provide a good foundation for developing your reward strategy. This can be approached through reviewing business plans and undertaking interviews with organisational leaders to explore this in more detail.
You should also consider how rewards are reinforced from a cultural and HR perspective. Consider what your core values are and to what extent rewards reinforce these by reviewing and considering your workforce strategy and reward policies.
In summary, when reviewing the organisation's needs and drivers you should review and consider:
- Strategic objectives
- Key performance goals
- Core skills, values and behaviours required to deliver these
- Current reward strategy
- Workforce plan.
Employee needs and drivers
It is important in terms of employees to understand what their motivations and needs are and how they vary at different levels and in different parts of the organisation. Gaining an understanding of how engaged they are, what they think of the current reward package and about possible changes to it, is important to ensure that any strategy meets their expectations.
The staff perspective is vital. Enhancing perceptions and staff motivation have to be critical goals of any reward strategy. Senior managers are sometimes concerned that staff may be worried about discussing their pay and rewards or have undue expectations. However, it is important to understand what your employees value and what they like and dislike about their current rewards. Ideally this data should be split to include areas such as function, pay band and demographics.
The NHS staff survey includes information on some aspects of how staff feel about their total rewards, such as the recognition and development they receive. Some employers have additionally surveyed their staff specifically for views on their total rewards. One large UK multi-location employer ran a brief pulse survey update to their annual survey for 10 per cent of its staff on rewards and held focus group with a sample of more than 200 of them. The results were then benchmarked with national norms to help to highlight areas for attention. A finding of below average levels of employee engagement in their annual staff survey was reinforced by their low ratings on some of these reward variables.
In summary, when reviewing your employee needs and drivers you will need to understand:
- How engaged your staff are
- What they like and dislike about your current reward offering
- What they might value in future rewards offerings.
Once you have reviewed and considered all of the information the next step is to ensure you have a clear overview of your current reward offering.