Rewarding Tips:The DOs and DON’Ts of setting up a reward structure

DO Make sure you put a structure in place, even if it’s a relatively simple one to begin with.

DO Identify the things that are really important to your staff – including non-financial benefits – and incorporate them into your strategy.

DO Invest in making your organisation an interesting and fulfilling place to work. It’ll help you attract talent, and can help keep overall pay costs down.

DO Keep it straightforward. Staff prefer clear pay packages to schemes that are overly complex or ambiguous, or that defer benefits way into the future.

DO Map out the pros and cons of potentially risky strategies, e.g. performance pay, before making wholesale changes.

DO Take advantage of free resources, like this fact sheet from the CIPD or expert blogs like this one

DON’T Make a scheme that’s so hard to understand, your line managers will struggle to explain it. They are key to making your reward structure a success.

DON’T Follow the herd. Just because your competitors have a complicated reward structure doesn’t mean you have to follow suit.

DON’T Assume it’s just about pay. As this global survey of executives shows, participants would consider a pay cut of up to 35% in order to get their ideal job.

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