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Reward Management

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Reward Management

A Handbook of Remuneration Strategy and Practice

Kogan Page,

15 min read
10 take-aways
Audio & text

What's inside?

You can devise a reward policy that reflects your organization`s values and goals. (PS. Good luck applying it fairly.)

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Editorial Rating

8

Qualities

  • Applicable

Recommendation

Tricky as it may sound to execute, this is a solid, concise introduction to reward strategy and management. Authors Michael Armstrong and Helen Murlis begin with the broadest, most elementary definition of reward strategy and management, but quickly dig down to pay dirt. They provide insider details on job evaluation schemes, antidiscrimination legislation, motivation and the other logistical choices required for reward management. Considered a classic by some in the field, their book offers quite a granular discussion of grade and pay structures, performance management, contingent pay and even the use of consultants. Its primary flaw is its steady use of one author’s employer - the Hay Group consulting firm - as the constant exemplar of reward scheme models and methods. getAbstract.com finds that this thorough, practical book provides all the ingredients you need to cook up a "best practices" reward management program.

Summary

Reward Management Basics

The ideal reward management strategy establishes a consistent, fair, value-adding set of policies governing wages and nonfinancial rewards. Rewards have a dual function: compensate people for their work and communicate behaviors and practices that organizations wish to encourage. Make reward management consistent with your organization’s goals and objectives, and compatible with its culture. Consider these axioms:

  • Total compensation should reward and encourage behavior that aligns with the organization’s mission and goals.
  • Pay can help drive change in organizations.
  • A portion of compensation should be variable and at risk.
  • Employees should have a personal stake in the enterprise’s success.
  • Pay is not just a financial issue; it is also an employee relations issue.

Total Reward

The total reward philosophy says that while money is important, it’s not everything. Intangible rewards include:

  • Quality leadership - Leaders are an organization’s motivators. Their function is to achieve objectives through the efforts of other people. Thus, they have an important role in providing workers...

About the Authors

Michael Armstrong is joint managing partner of an e-rewards Web site and a former Chief Examiner (Employee Reward) for the Chartered Institute of Personnel and Development. Helen Murlis, CCIPD, is a director of Hay Group.

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