Reward Live: Don't ignore your reward design strategy
Fifty-five per cent of HR managers questioned for a poll by Sodexo revealed they did not have a reward programme in place in their organisations.
This was the surprising statistic revealed by Jamie Mackenzie, marketing director, Sodexo Benefits & Reward Services to delegates at Reward Live.
Of these, 41% said they had no immediate plans to introduce one, while only 14% said they were planning to introduce one in the near future.
Mackenzie said: “This 55% number is quite significant. But we know that many organisations struggle with the basics of reward strategy – from deciding what it is the reward elements are intended to achieve, to measuring what actual impact it has on the bottom line.”
According to Mackenzie, 63% of respondents to its survey said there was insufficient buy-in from the top to implement a full reward strategy.
He said: “Businesses need to focus on demanding information systems that aren’t complicated, but will be able to demonstrate tangible bottom-line results.” He added: “HRDs also need to be clear about what they want to achieve.”
The business benefits of a well-considered reward programme are no longer open for debate. According to research by Towers Watson, companies with a non-cash rewards and incentive programme had revenues that were 6.6% greater than those who did not.
Said Mackenzie: “Getting reward right, with a proper programme is vital. Around 86% of staff say recognition was one of the most important parts of their working lives.”