The role ofbenefits inHR Strategy

Name: Robert HicksJob Title: HR Director @ Exponen3al‐eDate: 26 September 2013

What is Strategy

Business

HR

Reward

Business

HR

What is a Reward Strategy?

Effective reward is not just about raising salaries, but aboutfinding the right reward programmes for the strategic

direction of your business and your unique work culture…

Ownership EmpowermentInvolvement

Why is it important?

The Psychological Contract– the contract between an employee and employer outsideof the wriJen contract

Represents mutual:

•Beliefs•Percep3on•Informal objec3ves

It is a two way contract

It is especially important around non‐cash benefits

(Denise Rousseau 1995)

The tradi3onal view

Increasingly not aboutcash

Dental

Private Medical

Cri3cal Illness

Pension

Annual leaveDeath in service(Life cover)

Sick pay

Car allowance /company car

Childcarevouchers

Share scheme

The changing face of requirements

How visible is Reward?

How visible is Reward?

Crea3ng a modern reward strategy

The First Steps

                    Look at business goal and targets – what are they trying to achieve

                                    Talk to senior colleagues – get their input

 Anything you do must :

 Be in line with Core values

                                                                                                                                                                  Match the Mission Statement

Crea3ng a modern reward strategy

The How

1)Find out what staff want  ‐ adapt, an3cipate, understand

2)Get involved – don’t be an HR/Reward silo

3)Individual strategies (HR, recruitment etc.) must all link up, must also

4)Work together as HR professionals

5)Work out how it creates values & adds to the employee proposi3on

Things to remember…

• Always keep reviewing– Use a model

– Plan / Do / Check / Act

• Make sure you measure it– KPIs

– Balanced Scorecard

• Don’t be afraid to test things before a full roll‐out– Pilots

– Focus groups

• Remember to test once rolled out at both points of the employment life– Entry interviews

– Exit interviews

Things to remember con3nued…

• Remember to ask:– Are they valuing what you are offering?

– Are you compe33ve?

– What are the trends?

• Make sure you con3nue to benchmark:– General market tes3ng

– Compe3tors – where are you losing your “talent” too?

– New entrants

Things to remember con3nued…

• Remember to ask:– Are they valuing what you are offering?

– Are you compe33ve?

– What are the trends?

• Make sure you con3nue to benchmark:– General market tes3ng

– Compe3tors – where are you losing your “talent” too?

– New entrants

What can you do that is thedifference that makes the

difference?

Why a Reward Strategy is important

Effective reward is not just about raisingsalaries, but about finding the right rewardprogrammes for the strategic direction of

your business and your unique workculture…