Pay People Right

Six Reward Principles

The following principles will help you develop a successful, total-reward strategy. This includes building a business case for changing rewards in your company, and developing and communicating a total pay system. Changing the way you reward your workforce is a powerful - if difficult - way to motivate employees and improve performance. By itself, pay isn’t a business initiative, but it supports and promotes your business goals and initiatives by building improved employee understanding, acceptance and commitment. Together, these six reward principles create a practical foundation for the rewards you offer.

1. Create a positive, natural reward experience - Communicate and educate people about why you are changing workforce rewards and advantages. Involving people in the business and reward process helps them understand what is going on and gains their support.
2. Align rewards with business goals to create a win-win partnership - Both your company and your employees need to gain from their relationship. People who contribute to the organization’s goals should share in its success. To create this balanced win-win arrangement...