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Everyone wants to work in an environment where they feel valued, appreciated and like they’re making a difference.

One fundamental way for businesses to achieve this is through their reward strategy, which covers the key benefits employees receive in their day-to-day.

But how can businesses ensure what they’re providing is not only motivating their workforce but also maximising their employee retention?

Look no further – in this blog, we’ve covered the fundamental areas you should include in your reward strategy, helping ensure a competitive offering.

Firstly, what exactly is a reward strategy?

A reward strategy, in essence, is the initiatives that businesses design and implement to support their people and wider objectives.

The aim of optimising this offering is to foster a motivated and engaged workforce that will drive your business forward.

To help you balance the affordability and structure of your reward strategy, these are the four most important areas we recommend you cover.

1) Fixed and variable salaries

Every business has to pay its employees (that’s a given), but what you need to ensure is that the financial compensation you’re offering employees is in line with the industry and their role. 

You want to attract and retain top talent, particularly for key positions, so it’s important to know what the market demands for those roles within your business. 

Many pivotal roles also incorporate variable pay components, such as commission and bonuses, in addition to other mandatory provisions.

Having an appreciation of the expected remuneration structure, regardless of the jurisdiction in which you are operating or indeed recruiting for in a new venture, is critical.

This not only gives the company creditability to potential candidates and employees alike, but also enables the HR and Finance functions to manage the budgeting more effectively.

2) Employee benefits

One of the other highly sought-after parts of an effective reward strategy is employee benefits.

Globally, a considerably high degree of importance is placed on employee benefits – it’s as significant as salary to employees, when it comes to job satisfaction.  

Whilst what every business can afford to offer is different, here are a few of our recommendations for enhancements to employee benefits:

For employees, the differentiators will naturally vary, since no one size fits all; but employee demographics can play a large part in building out the benefits philosophy, alongside the cultural norms. 

Having an understanding of the in-country social structure is fundamental to achieving a benefits package that engages with the workforce; there is no point in structuring benefit programmes for an audience that simply gains no value from it. 

3) Training and development

A strong learning culture has been found to increase employee retention by 30-50%.

While financial benefits are important, providing personal growth is quickly becoming more sought after.

Personal development can be offered in a variety of ways, most commonly through either on-the-job experience or by undertaking training, and progression to attaining qualifications. 

Having a robust coaching and development programme is a highly positive attribute when recruiting and retaining talent, whatever the industry.

It is vital that you’re offering your people the opportunity to move forward whether that’s direct career progression or in the development of their skills.

4) Company culture and work environment

A defining factor when it comes to building a motivated and productive workforce is often the environment in which employees work. 

This is universally true, and whilst the world is becoming a smaller place, it’s important to acknowledge the shifts in culture and values, from country to country. 

Recognising what these differentiators are and incorporating them into the company’s ethos, builds a globally successful team more swiftly.

People want to feel valued and like they’re making a difference, and the best way to achieve this is to foster a workplace that regularly promotes team spirit and unity.

It was found that 79% of people who quit their job cite ‘lack of appreciation’ as their reason for leaving.

Due to COVID-19, it’s never been more important for you to make this a priority.

A lot of people are now isolated and working from home – so, as a business, you need to show that added care and create a sense of camaraderie that transcends the globe, wherever your team are operating from.  Inclusion is critical to employees feeling valued.

How can IRIS HR Consulting help?

We understand that optimising your reward strategy can seem daunting, especially when it comes to balancing the cost/reward and ensuring you’re in line with the competition if not surpassing them.

Don’t worry – IRIS HR Consulting is here to help.

With over three decades of experience in providing industry-leading global HR support, we’re ready to help you create a full-proof reward strategy.

Check out our benefits and compensation offering here or get in touch with our team to discuss your needs.