New Research Report in association with Director magazine

How the findings can help you to improve the value of reward

The research identifies key practices that help to maximise the value of reward:

• Introduce recognition schemes to underpin a performance culture
• Promote the value of reward. Communicating all aspects of an individual’s reward package is essential to increasing appreciation of the value it represents
• Be innovative in providing benefits. It is not always the most costly perks that employees appreciate most. Find out which benefits win the highest staff approval
• Give employees control. Web-based benefits and self-service keeps costs down and enables employees to take charge of the management of their package
• Consult staff on benefits they value most highly
• Run financial education programmes to help employees make more informed choices and get the rewards’ value message across.

How recognition can make the difference
The Smarter Rewards Report shows that the 200-plus group of companies that had implemented a formal recognition scheme outperformed other respondents. On average, the recognition group of companies spend eight per cent less on pay and benefits as a percentage of their total overheads than all respondents. Those that calculate the return also do better by a similar margin. In addition:

• More of the recognition group tracked the ROI on reward: 39 per cent compared with an all respondents average of 30 per cent
• Forty four per cent benchmarked their performance against an average of 30 per cent
• Fifty eight per cent explicitly link reward to corporate strategy against an average of 47 per cent
• Forty five per cent include reward in their annual staff satisfaction survey compared with an average of 28 per cent.