Developing a Reward Strategy

Course Overview

Organisations spend a significant proportion of their operating costs on pay, incentives and benefits. Most of them do not have a reward strategy and it is therefore probable that they are wasting much of this important investment. An effective reward strategy linked to the business and HR strategy is essential for any organisation to gain the maximum return from the reward investment and to maximise competitive advantage.

This 2-day course covers the theoretical and practical issues in developing a reward strategy, explores the processes needed to develop the strategy and provides the opportunity to use these processes through several case studies. It enables you to determine which reward processes are most appropriate for your organisation and develop your own reward strategy that takes account of your organisation's unique set of business, HR and employee circumstances.

Audience

Senior HR and reward practitioners with responsibility for remuneration policy and development and those who havepreviously completed the CIPD Advanced Certificate in Reward Management.

Skills Gained

By the end of the course you will be able to:

• assess the key business, organisational and HR issues that have to be taken into account when developing a reward strategy
• identify and source the information required to develop a reward strategy
• develop a reward strategy for your own organisation taking account of current and required levels of implementation capability
• use reward strategy and associated processes to contribute to organisational success.

Course Outline

DAY 1

What is a reward strategy?

• essential factors
• objectives
• success measures

Understanding the reward environment

• business environment
• organisational needs
• HR environment
• employee needs
• key stakeholders

Developing a reward strategy

• links to organisation strategy and HR strategy
• reward strategy in practice
• pay philosophy
• employee motivation
• supporting organisational change
• practical introduction to the process

Components of pay

• total rewards
• extrinsic rewards
• value/costs/benefits
• employee perspective

The changing reward agenda

• current issues in rewards
• emerging trends.

DAY 2

Reward strategy design

• organisational pay philosophy
  • guiding principles
  • balancing the economic/psychological contract
  • managing the paradoxes
• the process of developing a reward strategy
  • current practice
  • developing the plan, tools, communication, success measures
  • sanity checks
  • the change process
• case study exercises

Action planning