Pay and benefits are central to any reward structure. But, important as they are, they are only one way of encouraging people to achieve higher levels of performance and to demonstrate the values, behaviour and attitudes that make your organisation a success.
In the current climate, employers are increasingly looking at non-financial reward as a cost-effective way of encouraging existing employees to perform more effectively, and to retain and attract talent and high-calibre new recruits.
Research carried out by the CIPD suggests that while organisations that focus solely on financial reward may retain people for one, two or three years, those that concentrate on non-financial reward tend to keep people for longer.
The non-financial reward ‘mix’ can consist of a number of ingredients. For example:
- Personal and career development opportunities
- Flexible working options
- An attractive work environment
- Supportive line management
- Recognition of individual achievement
There is, however, no magic formula for non-financial reward according to the CIPD’s Charles Cotton: “People often talk of reward as being quite scientific, but actually it’s more of an art … trying to blend the ingredients to create your own kind of unique cake.”
For more advice on the reward mix, take a look at our Tips section (right). And do get in touch if we can help with fine-tuning the non-financial aspects of your own reward policies and reward package.