How to develop a reward strategy

Author: Tony Hatton-Gore

Summary

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• Consider how the reward strategy will use policies, practices and processes to support the business strategy.
• Understand what total reward is, why it is important and whether it could be incorporated into the reward strategy.
• Review the business strategy, and understand how objectives can be met through reward.
• Review the current reward offering, considering how each element supports the business strategy.
• Formulate the new strategy, taking into account that each element included in the strategy should have a purpose.
• Involve key stakeholders to ensure buy-in across the whole organisation.
• Plan the implementation of the new strategy, ensuring it is well communicated.
• Regularly check that the reward strategy is still relevant, current and effective.