Reward Management

Reward Management is concerned with how employees are rewarded in accordance with their value to an employer. This includes both financial and non-financial rewards and recognition, and includes the strategies, policies and processes used by companies to develop and maintain their reward systems.

Typical elements of a reward system include pay rates, bonus schemes, sales incentive schemes, company car benefits and medical schemes. The primary objective of  reward systems is to attract and retain the best possible employees for your business and this is achieved through promoting internal equity and external competitiveness. Strong employers tend to have clarity and definition around their reward systems.

Employee rewards are important for businesses of all sizes and in most sectors and used appropriately they form a key component of your business strategy. People represent a significant cost for most businesses and appropriate use of reward systems will lead to an improved return on your investment and greater sustainability. A fully engaged and motivated workforce is a significant asset to your business.

If you need advice or support with any aspect of reward management that isn’t listed below, please contact us to see if we can help.

Reward Management Services

Management grading provides a hierarchy for your organisation, allowing a structure to be created and generating greater transparency for your employees. A robust grading scheme allows equitable allocation of pay and benefits, reflecting the worth of each role to your business.

A salary structure allows your business to manage salary levels and ensure your employees are paid equitably and in line with market rates. Combined with a robust management grading scheme it will help you to retain your best employees and attract quality candidates.

Bonus plans come in various shapes and sizes. The key to a successful bonus arrangement is to ensure that it supports and delivers business improvement and profitability.

Sales incentive plans are not simply a tick in a box and a way of further rewarding your sales staff. They should be geared towards increased profitability and making a positive impact on your sales profile.

Company cars remain a valuable benefit with around 850,000 drivers in the UK. However, as the number of Company Cars have diminished the concept of the cash alternative ("car allowance") has gathered momentum and brought its own challenges associated with the management of the so called "grey fleet".

Non-cash employee benefits form an essential component in any reward system, adding to and enhancing the more obvious cash driven benefits. Although they generally have a cash value, usually for tax purposes, they are considered to be separate from Salary, Bonus and Incentive plans.

A reward strategy will form an essential part of your overall business strategy. People are a fundamental part of most businesses and applying an appropriate reward strategy will help to maximise the impact of your people in generating business success.