Paydata outlines the importance of an agile reward system that can respond and adapt itself to deliver what employees value…
Our autumn UK Reward Management Survey outlined how more employers consistently review benefits packages to ensure they remain competitive and valued by employees. We set out three key recommendations to ensure that you motivate the individuals that are collectively responsible for the delivery of your vision.
Pay is not a motivator in itself
Ensuring that existing and prospective employees know that the organisation pays fairly is a critical element of a number of factors that drive employee engagement. As Dan Pink outlined in ‘Drive’, pay is not a primary driver of employee motivation in itself. However, unfair levels of pay can be a demotivator for employees if they feel they are not being paid competitively in the market. We often advise that competitive levels of pay should be satisfied, so that employers can focus on unlocking greater employee engagement through other tools, such as equipping employees with a sense of purpose in their work, giving them responsibility and control to foster pride in their work.
Getting the mix right
When defining what other elements organisations should use to drive employee engagement, consider the following three key steps:
1. Actively listen
Let employees contribute to setting in place the tangible and intangible benefits they derive from work. Listening to their opinions on what they value from their reward package, and from the wider culture of the organization, promotes buy-in from employees at the outset. Giving employees the opportunity to contribute enables them to feel acknowledged even if not all of their suggestions are incorporated. By ensuring their opinions are heard, employees become invested in collaboratively building a successful culture, driving up motivation.
Employers are increasingly taking more creative approaches to accommodate what suits their employees. 82 per cent of employers expect to review their benefits strategy in 2020 according to Paydata’s autumn Reward Management Survey, demonstrating the importance employers are placing on defining which benefits are right for their employees. Whilst the traditional benefits of pensions and life assurance featured at the top of the list of benefits offered, employee assistance programmes were the third most popular benefit quoted, signaling an increasing acknowledgment by employers of the importance of supporting wider employee wellbeing.
2. Trust employees
Empower them to take control of their own progression – in so far as possible, give flexible working opportunities, more autonomy and defined goals to increase job satisfaction. Job families are useful in defining not only the framework upon which pay decisions are objectively and fairly made, but also in mapping out career paths. Utilising a system of defined roles, that tracks increased progression based on skills and responsibilities, employees are able to understand what they can do to achieve each promotion.
This gives employees control over the learning and development opportunities they take advantage of, which is increasingly important in multi-phased careers. Coinciding with the workplace changing, driven by innovations in artificial intelligence that can enhance productivity and retirement being delayed with more consultancy opportunities, employees are expected to be more agile in their approach. Tailored training opportunities for employees at every stage of their careers are increasingly valued and organisations can lower retention rates with a strong learning and development programme.
3. Keep testing
Successful cultures are not created overnight. Feedback from employees and candidates with entry interviews, exit interviews and pulse surveys all capture valuable feedback for employers to assess where they are now in relation to the culture they want to achieve. The rise in flexible working in the form of working from home and hot desking needs to suit the organisation’s needs. Ensuring that the right elements are in place to drive employee engagement and retention will require adjustments where necessary.
Greater awareness is being placed on the employer’s role in supporting mental health and wellbeing. As we have outlined above, employee assistance programmes feature in the top three most popular benefits offered by employers and 83 per cent of respondents to Paydata’s UK Reward Management Survey 2019 have policies and procedures in place to support mental health and wellbeing in the workplace. This illustrates the importance of adapting to employees’ wider priorities and health when evaluating how best to support engagement in the workplace.
Motivate your workforce
Robust reward frameworks underpin a motivated workforce. Transparent pay practices where individuals know they are being fairly and competitively remunerated can refocus employees on the wider benefits they derive from work and unlock the value they receive from a comprehensive system of reward that bolsters recruitment and retention.
Engage and retain your staff by getting in touch with us: www.paydata.co.uk