What is reward?
Reward is a general term relating to financial provisions made to employees. It can include their pay and the wider benefits package. It can also include wider provisions known as ‘total reward’ which may encompass non-financial benefits such as flexible working opportunities.
Pay is typically divided into two categories:
- Fixed (or base) pay is a guaranteed cash wage or salary paid to employees for doing their work for a contracted period, such as a 37-hour week. This can include location allowances and other associated guaranteed payments.
- Variable pay is not guaranteed. It can include bonuses, incentives and overtime payments.
Typically pay and benefits are used to influence employee behaviour and to encourage employees to join or stay with an employer and do their best. Traditionally the elements focused on were:
- Salaries to attract people
- Benefits to help keep them, and
- Bonus and incentive schemes to motivate them.
Nowadays, we recognise that individuals come, stay and perform for a wide variety of reasons which may or may not relate to financial reasons. Some people do not prioritise monetary elements or consider them important.
It is important that we get to know what motivates our workforce to ensure our reward strategy is fit for purpose and matches the culture of our organisation.
Our team are experienced at developing reward strategies and can provide tailored advice to meet the requirements of your organisation including research and analysis into different packages and how these can be implemented.
