Employers should underpin their total reward strategy with clear business objectives, according to Professor Shaun Tyson of Cranfield School of Management.
Addressing delegates in a master class on total reward at Employee Benefits Live 2009, held at the Business Design Centre in London today, Professor Tyson said organisations should decide whether they wanted their total reward strategy to increase market share, produce greater financial profits or simply sustain a firm’s position in a competitive market place.
He said: “Total reward requires you [employers] to have a clear plan from the very start so you can sense where reward is actually influencing the business.”
After employers have decided what they want to achieve from a business point of view, they can then start looking at which benefits achieve the desired behaviours in their staff. Professor Tyson advised delegates to view line managers as customers of total reward offerings and employees as consumers.
He said: “If you have particular values which are quite explicit and are relevant to your ‘customers’ or ‘consumers’ those brand values can be incorporated into your reward strategy.”
When it comes to marketing reward within the workplace employers need to consider the age, gender and demographics of their employee-base. Flexible working, for example, may appeal to working mothers.
“Money isn’t always a motivator. The behaviour of your manager is what is critical – that’s what really drives motivation”, said Tyson.
Find out more about Employee Benefits Live 2009