Developing a reward strategy


Welcome to the reward strategy toolkit

This toolkit is designed to lead you through planning, developing and implementing your reward strategy. The first phase focuses on the planning and preparation which will provide the foundation for your reward strategy. Phase two guides you through the development and design of your strategy ensuring the reward elements you offer are aligned to the principles and goals of your reward strategy. Phase three provide tools and tips on how to effectively implement and communicate your reward strategy. 

We have developed a quick guide to lead you through the three phases of the reward strategy toolkit to help you to develop an effective approach to reward for your organisation.  

We have also developed a film which outlines key top tips to consider when developing a strategic approach to reward.

Tell us what you think of the toolkit: How are you using reward currently? What challenges are your facing in recruiting and retaining the right calibre of staff? What else would you like to see in the toolkit? Please contact us at

Why do we need a reward strategy?

Many NHS organisations are not making the most of their investment in benefits, in particular by not promoting the entire value of their employment package to employees. Adopting a reward approach could provide you with an opportunity to better communicate the current employment package, improve awareness of its value, improve employee engagement and, ultimately, organisational performance.

It can give you the opportunity to demonstrate that, despite pay restraint and possible changes to pension contributions and subsequent benefits, the NHS continues to offer a very positive employment deal. Reward enables greater ownership of reward and benefits, allowing you to communicate the value of both ‘centrally determined’ and ‘local’ elements of the employment proposition. 

We provide further information on the benefits of developing an effective reward strategy on our why develop a reward strategy page. You can also read a blog by Duncan Brown, from the Institute for Employment Studies (IES), on why organisations should have a Reward strategy.

The reward strategy toolkit: overview

Pay and rewards can appear a complex and technical area, which in the past may have put off some employers from developing local reward strategies. This toolkit has been developed to lead you through each phase in designing and implementing an effective reward strategy specific to your business needs.

There are three key phases to developing a reward strategy:

In reality you may not follow each phase in sequence, you may have to act in some areas before you have considered and analysed others. These phases and steps can ultimately be applied to any rewards situation.

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