To what extent are you willing to go?
Firms claiming to align rewards with a business strategy “to a great extent” appear to post stronger total shareholder returns (13.6 percent) than do companies that link the two to “a little extent” (9 percent) according to a Watson-Wyatt Reward Plan Survey.
So how do you create strategic rewards? Follow this simple formula:
Clearly communicate what you require them to do.
Link the reward to a business strategy.
Give them the skills to do the task more effectively.
Thank them for responding to your communication and training.
Start over again.
Strategic recognition is a never-ending job. Fortunately, the rewards are equally enduring.