Developing a reward architecture
It’s not just how much you reward your staff that matters, it’s what you reward them for. Our reward architecture solution ensures that the reward programme sends the right message, focuses employees on what makes the difference, and provides the appropriate cost control.
Just like in the construction business, only by paying proper attention to architecture can a reward programme deliver on its promise. The right architecture will help you align reward programmes to meet both business and employee needs: this will enable you to define where and how to change the reward programmes, where the best investment in benefits should be made, and which implementation issues to address. What’s more, it will also give you confidence that the architecture is affordable, and helps in talent retention, and also gives your employees confidence that the overall package is fair to them; at the same time it gives your stakeholders confidence that staff are being rewarded for effective performance.
Hay Group can help design total remuneration programme that can help clients:
- align the value of the total rewards programmes with individual performance, business performance and work culture
- provide a competitive and differentiated total reward package, one reflective of the internal and external value of work
- ensure the external competitiveness of the total reward programme, so that the level and mix of remuneration is positioned against the right comparator groups, at the right levels
- develop reward programmes that most cost effectively meet the motivational and retention needs of employees
- ensure employees have buy-in, and understand new programmes, which, in turn, will increase employee commitment/engagement
- ensure line managers fully understand the programmes, and can lead in implementing them
- align people costs with business results.
Why Hay Group
At Hay Group, we will strive to understand your business and how designing rewards right can make a difference. Most of all, we ’know‘ people, what motivates them, and how to effectively influence them.
Our style is to approach reward from a business and an integrated, not just a technical, perspective. We blend the financial, organisational, and behavioural aspects of reward to create tailored programmes that fit the business strategy as well as HR goals. We also make use of proven diagnostic and survey methodologies and our database of rewards offered in businesses across the world.
The result is a total remuneration programme or programmes (base salary plus short-term incentives, long-term incentives and the value of benefits programmes) that ensures your organisation is providing the appropriate amount of remuneration, in the right ways.
Hay Group’s approach
Hay Group works closely with key decision makers across your business, including financial professionals, to understand your business strategy, business model, key performance indicators (KPIs), employee demographics and work culture. From there we are better equipped to review and redevelop your reward architecture.
- examine your current remuneration programme, and gauge the extent that it aligns with the business strategy, the HR strategy and the reward strategy
- understand the economics and business priorities of your organisation
- understand the employee demographics and potentially different needs of different employee groups
- conduct employee surveys to understand which reward programme features deliver the most value to them, and
- look at the messages that your reward programme is giving around each element, and determine the extent that they align with reward strategy.
From this we then develop base salary plans that are aligned with your business requirements and reward strategy. We also model outcomes and costs of alternative plan designs, to help you see the bigger picture, and explain the potential cost and accounting implications of our recommended strategy. We will then show you how this compares to other organisations, and offer insights into why different types of plans tend to be used by different organisations.
Finally, we can provide you with the benefit of our experience and expertise in implementing and communicating the new salary programme: many well designed programmes do not return a ‘return on investment’ due to poor communications or implementation.
Hay Group in action
Hay Group has helped develop a reward architecture for Family Dollar - read our case study.
Find out more
If you would like to discuss how we can help you develop a reward architecture that fits your business strategy, please contact us.