How to align your reward strategy with business objectives
Your organisation’s reward strategy can impact everything from employee wellbeing and engagement, through to the productivity of your workforce and staff retention.
When executed correctly it can be incredibly powerful, but all too often organisations fail to align their reward strategy with business objectives.
First of all, why should you align your reward strategy with business objectives?
Hitting your organisation's targets depends on encouraging and rewarding the behaviours and culture that’s required for getting there.
This is why it’s so important that your reward strategy is created with those business objectives in mind.
Your most valuable employees don’t just want to turn up, do a job and receive their monthly salary. They want to see the link between what they do on a daily basis and the success of the organisation.
By effectively communicating the positive effects to the business of certain behaviour, combined with rewarding that behaviour and success, you’ll drive employee engagement and significantly improve results.
How to find gaps in benefits provision
All too often, organisations attempt to address gaps in their benefits provision by simply adding more options. The problem is they don’t actually take the time to communicate with their employees.
Analyse different data sets within the organisation, as well as the conversations that are happening.
Andrew Drake, director of people experience consulting at insurance broker Gallagher spoke to EmployeeBenefits.co.uk about the subject: “Often the biggest problem is not communicating well,” he said.
“Small changes can have a big impact if employees think about things differently. I enjoy doing the school run every day and my boss is fine with it; that makes me happy but it’s not a tick box on a menu.”
How to find out what benefits people want?
Employee benefits can engage and motivate your team—but only if they’re benefits your people actually want.
Not sure if benefits programmes are really that sort after, compared with a pay rise, for example? A study by Glassdoor in 2015 found that 79% of employees want better benefits over an increase in salary.
However, to ensure you’re implementing a benefits package your employees are going to value, the best thing to do is ask them. Send out anonymous surveys to everyone in the organisation and make sure you follow through on what they tell you. You can even ask people during job interviews what sorts of benefits they’d value, and ask departing employees during exit interviews what would’ve helped retain them.
Of course, what people say doesn’t necessarily align with how they feel.
To help solve this problem, Aon developed a next-gen employee listening tool called ‘Reflections’ which leverages neuroscience to get to the bottom of what your employees really think.
Why it’s important to make benefits flexible to suit the entire workforce
The British workplace has never been more diverse in terms of how people work.
The fast-tracking of flexible and remote working as a result of Covid-19, as well as an increase in contract workers and outsourced resources, means organisations have a challenge in devising a reward strategy that suits everyone.
If you make the mistake of implementing a one-size-fits-all approach to a reward strategy you’ll not only fail to engage a large proportion of your workforce, but you’ll also risk disengaging and demotivating them. This will negatively impact both talent acquisition and retention.
REBA’s (the Reward & Employee Benefits Association) Global Benefits and Attitudes Survey found that the majority of UK employees (60%) were unhappy with their current benefits package, while 7 out of 10 stated that they weren’t offered a wide choice of benefits options.
REBA also found that the desired rewards and benefits were hugely dependent on demographics. For example:
- Wealth-enhancing benefits were more appreciated in older workers, with 51% of baby boomers seeing it as a priority versus just 44% of Generation X and 32% of millennials.
- Wellbeing initiatives were most popular amongst millennials.
- Women were more likely than men to be dissatisfied with their employer’s benefits package.
Choose effective benefits to engage employees and support your goals
With such a diverse range of needs—based on age, gender, location and economic situation—it’s unlikely that your organisation will be able to cater to all of your employees without support.
Here at Sodexo Engage we’ve been working with businesses across all sectors for over 60 years, helping them to develop benefits and rewards strategies that are aligned with business objectives.
We offer a huge range of products designed to support the three pillars of wellbeing: physical, mental and financial.
Employee Recognition Platform
Your reward strategy is based on the principle of rewarding a job well done, and our Employee Recognition Platform provides an easy framework for you to do just that.
From a single online portal you’re able to recognise and reward success, including peer-to-peer recognition.
Employee Benefits Platform
The modern employee doesn’t just expect to enjoy workplace benefits when they’re being recognised for great work—they want access to them all the time.
Our Employee Benefits Platform is available whenever and wherever they need it, providing them with a fantastic range of benefits programmes in one place, while helping your organisation build long-lasting connections with them.
Our platform includes prepaid recognition cards, cycle to work schemes and discounts on a wide range of products and services.
Employee Assistance Programme
Post-pandemic, 82% of employees want their employers to display a better awareness and handling of mental wellbeing.
An Employee Assistance Programme (EAP) demonstrates your organisation’s commitment to this area of wellbeing.
Our EAP will connect your staff with counsellors who are fully accredited members of the British Association for Counselling and Psychotherapy (BACP), helping you to build a supportive company culture.
Ready to find out more about how Sodexo Engage will work with you to define a truly effective reward strategy that’s aligned to your business goals? Get in touch now to speak with our team of experienced consultants.