Rewards Revisited: From “Me Too” to Value Driver
Generating more value from rewards programs
Rewards programs — the pay, benefits and other items valued by employees in return for their work — have a tremendous effect upon employees’ willingness to expend extra effort. Yet many companies regard them simply as a cost of doing business. They know they spend a lot of money on rewards, but most have a difficult time linking those expenditures to specific results. And without that understanding, it’s difficult to see rewards as anything but a big expense.
The idea that rewards are an investment to be managed, rather than a cost to be controlled, is just starting to take root. But it’s an idea whose time has come. Today’s companies face unprecedented people challenges, including an impending talent shortage — driven by an ageing workforce — that is expected to last for decades. Companies also face continuing pressures to cut costs, including the cost of rewards. There are several reasons why companies should find ways to generate more value from rewards programs. Reducing the cost of rewards administration simply isn’t good enough.
However, it’s not as easy as simply making a straightforward calculation to measure the value employees place on rewards, the extent to which rewards influence employee commitment, and the impact of commitment on productivity and performance. And rewards such as work/life balance and career development are also difficult to quantify. But, all of these items can have a significant impact on the bottom line, and to avoid measurement is to pass up a real opportunity to help improve shareholders’ returns.
This book outlines a new approach companies can use to help improve their rewards programs by transforming rewards from a cost to be controlled to an investment for growth and improved performance.
Download the PFD below.
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