Putting your company culture into practice is like solving a jigsaw puzzle. There are a lot of elements that need to fit together — communication, trust, individual objectives, a common goal and much more. The groundwork lies in aligning employees with your company culture and motivating them to perform highly. However, this can be quite an intricate mission without the right rewards strategy or the help of a compensation solution.
One of the few companies that has achieved setting up and maintaining the right rewards strategy in line with their company culture is Vodafone. The organization recently awarded their Rewards Team for the invaluable performance.
Five Steps to Right Rewards Strategy
Follow these five steps if you’d like to achieve the right rewards strategy and create an exemplary Rewards Team like Vodafone:
1. Be Transparent in Your Communication
Establish a solid foundation of trust with your employees and set a common goal that is communicated efficiently across the business. A top-down communication across the organization is key and leads to an improved relationship between local offices, departments, teams and employees. You can have more than one high-performing employee in your team but that doesn’t necessarily mean that your team is delivering. For your entire team to exceed expectations, you need to start by setting individual objectives and company goals. Then, you require inspiring leaders who lead by example and ensure that everyone stays on track with the business strategy. A successful rewards program aligned with this strategy can help keep employees motivated and happy over a long period of time.
2. Empathize With Your Employees
Getting your employees on-board with your rewards strategy isn’t always easy. Companies are often so engrossed with their top-down communications that they often neglect empathizing with their employees. That’s why it’s sometimes useful to start by understanding your employees’ goals, needs and interests… Only then can you offer them a fitting rewards program and motivate them to perform better in line with your company goals.
3. Analyze and Improve Your Rewards Strategy
Once your rewards program is up and running, you need to understand if the strategy and plan you’ve put in place is delivering results. This means using analytics and drilling down into your people data to drive better decision-making. Analyzing your data will help you ensure that the goals you’ve set are being met…eventually resulting in benefits for your business and employees. To find out more about how a data-driven approach can help you, read our post on people analytics.
4. Choose the Right Technology to Support Your Strategy
If you align your company values with the right performance and compensation management solution, you can drive a lot more than just performance. You can drive the happiness of your people. Most HR teams are still striving to find that ‘right technology piece’ of the puzzle which fits together rewards strategy, individual objectives and company goals. Following a ‘best practice’ approach when selecting your compensation software isn’t always the best route to a successful rewards strategy... but you probably already know that. Standard compensation systems rarely meet the needs of your organization’s complex processes.
5. One Size Does Not Fit All
An article by Dr. Tomas Chamorro in the Harvard Business Review already pointed out that “…in the era of personalization, when most things can now be customized to fit our needs — from social media feeds to potential dates, to online shopping displays and playlists —it is somewhat surprising that compensation systems are still based on the premise that what works for some people will also work for everyone else.” Vodafone looked at their rewards strategy from a “one size does not fit all” perspective. They didn’t select a standard talent suite. They chose a Total Compensation Solution that conformed exactly with their unique company values and objectives — delivering a significantly improved annual reward review experience. The solution has also helped Vodafone improve efficiency by decreasing their salary review processes for over 89,000 users from 3 months to 15 days.