Reward

Reward includes all your salary and benefits policies.  Current practice is to consider 'total reward'.   This will include all the tangible benefits, starting with basic salary. 

You may wish to pay bonuses and have a policy of increments according to length of employment or level of performance, or a mix of both elements.  You can offer other financial benefits such as health care, child care vouchers, a pension scheme and so on.  Some benefits will accrue to an individual and some may be collective and apply to all employees.

You will also be able to offer a range of intangible benefits.  These include the general work atmosphere, opportunities for learning and development, working in other parts of the business.

It is important for employees to know not only what they will be paid but how they will gain increases.  So you will want a clear salary scale and policies and procedures to manage increments.

One of the most important aspects of your reward policy is how to make it fair.  Part of that process is likely to be some form of job evaluation.  This helps you to rank jobs in terms of the skills and qualifications needed to do the job well.  It also takes into account the level of responsibility and authority held by the job-holder.

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