Reward StrategyUncertain times make a strategic approach to pay and rewardsessential in engaging your employees to deliver on business andperformance goalsThe current uncertain economic climate makes it very difficult for employers to take a strategic long-term approach to reward. The majority still dont have a written reward strategy or a long-termapproach that is aligned with their business plan. Short-term flexibility is vital, but so is having a clearphilosophy and direction on reward. Without this clarity, there is a strong likelihood that you will bedirecting your reward spend to the wrong areas and delivering inconsistent messages to youremployees.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 approachWe 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 futurereward 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 ofAon Hewitt Contacts: reward Duncan Brown +44 (0)207 086 9037 Supported detailed design and the implementation of the agreed email@example.com Jackie Waller +44 (0)172 788 8394 About Aon Hewitt firstname.lastname@example.org Aon Hewitt is the global leader in people management consulting and outsourcing solutions. We Leslie Moss +44 (0)207 086 9212 design, implement, communicate, and administer a wide range of people management, retirement, email@example.com 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 aon.co.uk and their employees. www.aonhewitt.com