Attract, retain and motivate your people through reward

Attract, retain and motivate your people through reward

To excel in business you need to develop the right reward strategy which will help you attract, retain and motivate the right people for your organisation.
Staff costs are one of the biggest expense lines in most organisations because human capital is key to any organisation.

If an organisation has the right people with the required skills then it can compete effectively. It’s therefore very important that every organisation has a right reward strategy.
Reward strategy can be defined as “an approach to reward staff based on a set of coherent principles in support of the organisation’s goals.”

It is important to view reward strategy in the context of the organisation’s strategy and overall human resources strategy. It has to be viewed holistically because it impacts on the whole organisation.

Rewards have an influence on performance and the behaviour of employees. Although it has been argued by other writers that monetary rewards may not motivate in the long term, there is evidence that rewards certainly show what behaviours an organisation values.

The whole objective of rewarding employees is to ensure that their contributions towards achieving organisational and team goals is being recognised. Rewards should therefore help in motivating employees to perform at their best and also in helping in employee retention.

The objectives of a reward system should be to attract the right people with the requisite qualifications, retain those them and then motivate these them to attain high levels of performance.

So when developing a reward strategy it is important to address the following questions below so that you come up with a reward strategy that will achieve what you want:
l    What are each of the different elements of reward for?
l    What messages do our reward programmes carry?
l    Are the messages they carry in conflict?
l    How cost effective are our reward programmes?
l    What is the perceived value of reward programmes in the eyes of employees?
l    How do they fit with our mission, values and organisational strategy?

Rewards can be viewed as intrinsic or extrinsic. Intrinsic rewards “are intangible rewards concerned with the work environment like quality of working life, recognition, performance management and learning and development whereas extrinsic rewards are financial and material, Rewards can be monetary or non-monetary.
Monetary rewards include basic salary, employee share options, profit sharing schemes, annual or semi-annual bonuses and other cash awards.

Rewards and incentives play a vital role in the workplace because it positively impacts on performance and productivity, increased morale and job satisfaction.
Non-monetary rewards could be given as perks or as employee recognition by affording training opportunities to a well performing employee.

By recognising a performing employee it encourages the employee to continue performing better. So a good reward system should go beyond the financial returns to include all of the above things about one’s work.

Reward systems need to be carefully crafted because they often send a clear message to employees about what’s important in the organisation, that is, what does the organisation value.
So if an organisation values quality then it has to place emphasis on that issue or if there is a certain competence that the organisation needs then it has to reward that competence to ensure it attracts and retains the required skill.

For reward systems to be effective there is need for employee empowerment where the workers are involved in setting the targets and the critical areas that need to be measured and how they will be rewarded for exceptional performance.

Employees want to own what will impact them otherwise they will resent changes thrust upon them. They’re likely to embrace change in which they took part.
If employees consider the reward system as theirs then the reward will have significant effects on their behaviour and performance.
Different studies by a number of researchers have shown that there are internal and external factors that affect reward systems.
These factors have been identified as organisational culture, work environment, people, and business strategy, political and social climate.
Rewards will be tailored to address the key issues that the organisation value. Each organisation is impacted differently by these factors so the emphasis will be different for each organisation.

The external factors that may affect reward systems include globalisation, market rate of pay, the economy, societal factors, legislation and trade unions.
Organisations will have to take these factors when coming up with a reward strategy.

Rewarding good performance is critical if you have to motivate your staff as said by these two business leaders: “I consider my ability to arouse enthusiasm among men the greatest asset I possess. The way to develop the best that is in a man is by appreciation and encouragement said Charles Schwab, founder of Charles Schwab Corporation. Robert McNamara, former president of Ford Motor Company said “Brains, like hearts, go where they are appreciated.”

Stewart Jakarasi is a business & financial strategist and a lecturer in business strategy and performance management.
He provides advisory and guidance on leadership, strategy and execution, preparation of business plans and on how to build and sustain high-performing organisations.

l For assistance in implementing some of the concepts discussed in these articles please contact him on the following contacts: sjakarasi@gmail.com or +266 58881062 or on WhatsApp +266 62110062

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