Strategic reward takes a long-term approach to how an organisation’s reward policies and practices can support its business objectives. The concept of 'total' reward covers all aspects of work that employees value, both tangible and intangible, and may form part of an overall reward strategy.
This factsheet explores the various aspects of designing and developing a reward strategy, from business case rationale to implementation. It also offers guidance on the principles to consider when designing a reward strategy. It introduces the various characteristics of total reward (including the elements they may include), before looking at the approaches organisations can take, and the advantages and drawbacks of total reward. The factsheet also considers which organisations are likely to adopt a total reward approach.