reward strategy - aon hewitt
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Reward StrategyUncertain times make a strategic approach to pay and rewards essential in engaging your employees to deliver on business and performance goals
The current uncertain economic climate makes it very difficult for employers to take a strategic long-term approach to reward. The majority still don't have a written reward strategy or a long-term approach that is aligned with their business plan. Short-term flexibility is vital, but so is having a clear philosophy and direction on reward. Without this clarity, there is a strong likelihood that you will be directing your reward spend to the wrong areas and delivering inconsistent messages to your employees.
Some of the key issues we see that employers are currently wrestling with include:
Managing constrained pay budgets when leaders are increasingly concerned about retaining specialist and high-performing staff
Using rewards to reverse the general decline in employee engagement levels with their living standards and employer costs under severe pressure
Maximising the incentive effect of variable pay, especially if bonus plans have not been paying out
Simplifying and clarifying reward processes in an increasingly complex and fast-changing context
Aligning and designing reward policies during a merger or acquisition
Managing rewards for different employee groups, so as to deliver both fairness and flexibility
Improving the will and skill of line managers to effectively implement and operate reward policies in practice
Internationally, moving to more integrated and consistent reward policies whilst retaining local market flexibility.
The Aon Hewitt approach We help our clients design and deliver an effective reward strategy through a researched and tested, clear and structured step-by-step process. This process involves the identification of key future reward needs and a detailed assessment of current effectiveness from three main perspectives:
The level of alignment with business requirements and delivery of value for money
The impact on employee engagement and performance, as well as quality of line manager delivery
The degree of robust technical design, external market competitiveness and fit.
Based on this analysis, we work with you to develop a blueprint of the future reward architecture, detailed implementation and operating plans, as well as clear measures of success.
Our wider support covers:
All areas of technical reward design, ranging from executive remuneration to job evaluation and broadbanding, gainsharing to flex plans, equal pay reviews to benefits plan design
An extensive database of market reward information, including our Total Reward Survey, which covers pay and benefits information for more than 300 UK based organisations. We run various industry-specific surveys (including Oil & Gas and Real Estate sectors), as well as specialist studies such as Variable Compensation and Sales Compensation Surveys
Engagement studies for more than 5,000 clients globally, resulting in deep expertise in surveying and acting on employee engagement data
Reward communication support through a dedicated specialist team, as well line manager training and change management process support
Reward strategies are never perfect, but our approach offers demonstrably more aligned and engaging reward practices to better support the future success of your organisation.
Client Case Study – Community Interest Company The client: A new community interest company was being created in the UK to deliver a range of health services, and with staff being transferred in from a number of different organisations. The issue: The need for a clear philosophy and approach to reward in this new organisation, establishing reward arrangements for new staff and dealing with staff transfers. How Aon Hewitt added value: We partnered with the HR function and senior management team to determine a reward approach and priorities for the future. Specifically, we:
Designed a reward strategy pathway linking business strategy and values with people requirements
Developed an agreed a set of future reward principles and their practical implications
Reviewed relevant market practice to highlight the range of options in each area of reward
Partnered with the senior management team to select the most appropriate policy in each area of reward
Supported detailed design and the implementation of the agreed plans.
About Aon Hewitt Aon Hewitt is the global leader in people management consulting and outsourcing solutions. We design, implement, communicate, and administer a wide range of people management, retirement, investment management, health care, reward and talent management strategies. With more than 29,000 professionals in 90 countries, Aon Hewitt makes the world a better place to work for clients and their employees. www.aonhewitt.com
Aon Hewitt Contacts:
Duncan Brown+44 (0)207 086 9037
Jackie Waller+44 (0)172 788 8394
Leslie Moss+44 (0)207 086 9212
aon.co.uk