AN organisation's goals should influence business strategy and link to performance indicators before rewards are put in place.
In the session Linking reward programmes to business strategy and profitability, Keith Nash, HR director at Europe at recruitment consultancy Badenoch & Clark, explained that employers should ask key questions when putting a benefits plan in place including: what are the key business drivers, will linking these with reward improve performance, and which parts of the reward package are appropriate to include?Speaking in the same session, Philip Turner, HR manager at biotechnology firm Amgen, explained how its total reward strategy is underpinned by performance management.
This means that performance influences how employees are rewarded and recognised, for example, in terms of base pay increases, bonus payments, and recognition awards.