"...an organisation is no more and no less than the sum of its people"
Dawn Hudson - North American President of Pepsi Cola, Inc.

Turning Vision into Value through people

BUSINESS REWARD STRATEGY ALIGNMENT

INTEGRATING BUSINESS & REWARD STRATEGY

Our consultants work closely with clients in making them understand that the overall business strategy serves as a critical guide in designing HR business systems as it specifies what the company wants to accomplish, how it wants to behave and the performance levels it must demonstrate to be effective. The strategy should strongly influence an organisation's design and management style, both of which should drive the design of rewards. The reward system in turn help to drive performance by influencing important individual and organisational behaviours.

The need to link business and reward strategy to achieve strategic integration or fit may seem obvious. Strategic Reward Management should be led by business needs, (as illustrated in the diagram overleaf). But recognising this requirement is one thing, putting it into effect is another. A quick analysis of many organisations will reveal salary structures based solely on grading results, with the business needs not taken into cognisance. Strategic Reward Management provides specific directions on how the organisation will develop and design reward programmes that will ensure that it rewards the behaviour and performance outcomes that support strategic business goals. Reward strategies we design for our clients are founded on the proposition that the ultimate source of value is people. This means that reward processes must respond to their needs as well as to the needs of the organisation.

The Strategic Reward Management concept takes into cognisance what we term the Total Reward Process as illustrated overleaf. This, as already alluded to, is an integrated approach in which the different elements are mutually supportive and together lead to improved performance. This means Total Reward Strategy must flow from the HR and Business Strategy.

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