You would be foolish in thinking that your business alone or salary offer is enough to attract someone into working for your organisation. In fact, this attraction doesn’t just come from pay either. In this guest article Peter Brown from Paydata looks at how to attract and retain employees you need to ensure you have an effective reward strategy in place.
Rewards which attract someone to your business come in a number of different forms;
Pay – including base pay, variable pay, bonuses, incentives, allowances and share schemes
Benefits – including core, voluntary and flexible benefits, pensions, annual leave, flexible working
Growth opportunities – including training, development, secondments, sabbaticals
Working environment – culture, management style, community involvement, office space
A good reward strategy will bring these strands together in a common framework which should then be promoted externally throughout the recruitment and retention process.
It’s also important to remember that what works for one business when recruiting, won’t work for another – there is no one-size-fits-all reward strategy.
For example, flexible working may not lend itself to a job in construction where you are on a building site and each employee is reliant on the other being there, yet it may work in a marketing organisation where employees can work to their own individual workload.
As such, each industry, sector and business will provide a different reward programme, which not only caters to the needs of the business but also makes the company competitive when compared to its rivals. A good reward strategy will attract the right talent and ensure that they want to work for you long term.
Rewards boost your recruitment strategy
How a reward is determined will either help or detract from your efforts to attract the people you want to work for you. However, proceed with an air of caution here, as you will want to ensure that the reward being offered is not someone’s main incentive for applying for the role. A balance of a interest in the reward offered, the job role, passion for the industry and your organisation should be found in the right candidate.
Salary was briefly mentioned at the start of this article, but it’s worth discussing once again; while potential recruits may be attracted by money, there are other elements of a reward which are also taken into consideration throughout the process. Reward strategies are often curated around metrics, but it’s important to consider what kind of values you want recruits and future employees to display.
People are often willing to take trade-offs and have their own idea of a reward package. For example, flexible hours may be a key benefit for some people, good career development opportunities may be seen as more important than going for the highest pay for others, a strong sense of purpose with a can-do culture can be very appealing to some. Therefore, implementing a reward strategy which perhaps discusses the opportunity for a flexible benefits package can be advisable.
A good reward strategy lets you put together a persuasive proposition for the job applicant, whatever their preferences; and consistently applying that reward strategy will help deliver the experience the person wants throughout their career and help keep them interested and motivated.
How a reward strategy is put together as part of an employment deal can have a huge impact on recruiting particular individuals. When people move organisations, they aren’t aware of what it’s truly like to work at that company – therefore, it’s essential that the reward package displays core values and what is expected of employees. When the risk of moving job roles is high, a good reward scheme helps to remove any potential worries a potential employee may have.
Ultimately, a reward strategy can be used at every part of the recruitment and retention process; from an initial talent management strategy, to attracting talent to apply for the job role, through to their successes and development.
It benefits your organisation
A reward scheme also determines how your employees behave, something which is then a reflection on your organisation. If certain behaviour patterns are rewarded, then this puts your business on a path where employees values are aligned with the businesses. The reward strategy provides a context for how employees are rewarded, and should be put into action alongside the wider aspirations of the business.
A good reward strategy reinforces the behaviours people have to exhibit for the organisation to meet its goals; and also helps ensure there is alignment between the various elements of reward. For example, if you want to reach a certain target then a specific reward can be implemented to ensure that target is attained.
Reward plays a vital role in communicating employer values and sharing aspirations – and ultimately incentivises that behaviour.
Peter Brown is Senior Consultant at Paydata