Salaries – the ultimate reward system for employees
A salary is the fundamental part of an ultimate reward system for all employees and the first part of an overall package that an employee will consider when either looking to join a company or looking to move on as part of their individual career progression.
It is important to implement an annual pay review across the board. Salary benchmarking will ensure that your workforce’s salary across the different pay ranges positions you competitively in the market. This information is vital both as an understanding of the cost implications faced by those who are experiencing the same trading environment as you and to possibly prevent employee ‘poaching’ through your competitors offering higher salaries.
There are two key reasons why an employee may want to leave your employment – because they are unhappy and don’t feel like they are progressing or because they are looking for more money. An annual pay review will help ensure that both these elements are addressed before they grow into something too significant and will make sure your employees feel heard on a regular basis.
Employee reward system examples
In addition to the main salary, there are a number of elements that can be integrated into established reward systems, including the use of third-party suppliers. Reward systems examples include benefits packages that can offer a wide range of additional benefits such as health and wellbeing services, financial advice, gym memberships, stock options, retail vouchers and even more flexible working conditions.
This mixture of tangible and intangible benefits can be drawn on by employees as and when needed, giving them easier, more cost-effective access to benefits that will ultimately make their lives easier.
Employers can encourage retention, by offering additional benefits based on length of service, whether that is the opportunity to take a sabbatical, a more flexible approach to working remotely (if appropriate), increasing the number of days holiday commensurate with length of service, even the introduction of ‘duvet days’.
