When putting together a rewards program for employees, many companies simply look at what their competitors offer, or cobble together something without a lot of planning. But in doing this, companies are foregoing a valuable resource, an opportunity to attract new people and retain those they have
Outstanding companies design rewards programs differently. They look at what other companies are doing, but that does not dictate their own direction. Leading companies design rewards programs that fit their own mission and culture, that further the goals of the company.
The better way to develop a rewards program is to suit it to your particular organization. One of the key purposes of aligning the program to your company is also to attract and retain people who share the values of the company. Here are three ways to do this.
1. Coordinating the rewards with the objectives of the company
The rewards program should fit in with the overall business plan or strategy of the company. If, for example, you are trying to encourage teamwork, rewards should be given for those who work effectively in teams and further the use of teamwork in the company. Or if the company is trying to encourage innovation, rewards should be given for those who contribute to that goal.
2. Fitting rewards to employees
Again, this is not a one size fits all. If you use some generic reward system, you are missing an opportunity to fit your rewards to the desires of your employees. They should be treated as customers. Find out the kinds of rewards they desire and value, instead of simply assuming you know what they will like.
3. Fit your rewards to your brand
Your reward system should be a part of your company brand – one of the things you do that makes your company unique, that shows its value. It should be one of the things that make your company stand out among others. It is something that your company can publicize to show how it is different, and so use it to attract new talent.
And since your reward system mirrors the culture of the company, it will attract the kinds of people with similar outlooks and mindsets, those who will be a good fit with the business.