Balance short- and longer-term thinking
If your strategy is purely reactive i.e. matching or exceeding the pay, incentives and benefits of your competitors, ask yourself what effect will this have on your ability to achieve your business goals over the longer term.
Make your offer distinctive
Create a reward offer that is right for your organisation (rather than being based on what others are doing). Having a distinctive offer will help your organisation to stand out from the crowd when it comes to recruiting and keeping talent.
Reinforce your organisational culture
Use your reward practices to promote, rather than undermine, the behaviour you expect from your talent. While rewarding results may be successful in the short term, if it also encourages poor behaviour there will be a kickback in the longer term from other members of staff.
Pay attention to what employees say the want
Is there a disconnect between what you believe will attract critical-skill employees and what employees themselves say they want? Evidence suggests this is a common problem. For example, organisations underestimate the importance of job security in attracting top talent**.