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11. Future trends of Rewards Management

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Every thing is always changing according to the situation, So Rewards ?

Reward Management strategy also getting updated 



DEI

Diversity, equity, and inclusion (DEI) are key principles that organizations increasingly recognize as essential for fostering a positive and productive workplace culture. Let's break down each of these concepts:

 



Diversity:

Definition: Diversity refers to the presence of a wide range of individual differences among people within a community, organization, or society.

Focus Areas: Diversity encompasses various dimensions such as race, ethnicity, gender, sexual orientation, age, socio-economic status, physical abilities, mental health, and more.

Importance: A diverse workforce brings together different perspectives, experiences, and ideas, which can enhance creativity, innovation, and problem-solving.

 

Equity:

Definition: Equity is about ensuring fairness and justice in processes, policies, and systems so that everyone has an equal opportunity to succeed.

Focus Areas: Equity involves recognizing and addressing historical and systemic disparities, overcoming barriers to access and opportunities, and actively working to eliminate bias and discrimination.

Importance: While equality is about treating everyone the same, equity is about ensuring that everyone has what they need to be successful, acknowledging that different individuals may require different levels of support.

 

Inclusion:

Definition: Inclusion involves creating an environment where all individuals feel valued, respected, and supported, and where they can fully participate and contribute.

Focus Areas: Inclusive practices involve fostering a sense of belonging, promoting open communication, and dismantling barriers that may prevent certain individuals or groups from fully engaging in the workplace.

Importance: Inclusion is crucial for leveraging the benefits of diversity. It ensures that diverse voices are not only present but also heard and valued, contributing to a positive and collaborative work culture.

 

 

 

 

 



FROM TOTAL REWARDS TO SMART REWARDS

Total Rewards

(Source - AIHR,com)


SMART REWARDS

 "Smart Rewards" will include,

1.   Personalization

·         Tailoring rewards to individual employee preferences, performance, and career goals.

2.   Data-Driven Decision Making

·         Using analytics to understand the effectiveness of different reward elements and adjusting programs accordingly.

3.   Technology Integration:

·         Leveraging digital platforms for easy access to rewards information, recognition programs, and other perks.

4.   Real-Time Recognition

·         Implementing systems that allow for immediate and ongoing recognition of employee achievements.

5.   Wellness and Health Tracking

·         Integrating health and wellness programs with rewards, possibly utilizing wearable technology or health apps.


A well-designed total rewards strategy is a key tool for organizations to not only attract and retain talent but also to cultivate a motivated and high-performing workforce that contributes to the achievement of business goals.

While "Total Rewards" provides a holistic framework for understanding employee compensation and satisfaction, "Smart Rewards" could be a forward-thinking and technology-driven iteration of this concept. The effectiveness of such approaches would depend on the organization's goals, the preferences of its workforce, and the successful integration of technology into the overall employee experience. It's essential to stay updated with current HR trends and practices to understand how concepts like "Smart Rewards" might evolve over time.

 






References

  •  McKee, M (2023) What is a Total rewards Strategy  Available at https://www.indeed.com/career-advice/career-development/total-rewards-strategy (Accessed on 25 November 2023) 
  •  Gardner, R(2023) What is a Total Rewards Strategy? A Practical Guide - AIHR  Available at https://www.aihr.com/blog/total-rewards-strategy/ (Accessed on 25 November 2023) 
  • Lopez, J (2022) What Is DEI? Defining Diversity, Equity, and Inclusion
      Available at httpshttps://www.uschamber.com/co/start/strategy/what-is-dei (Accessed on 25 November 2023) 
  •  (2022) What is diversity, equity, and inclusion?
      Available at https://www.mckinsey.com/featured-insights/mckinsey-explainers/what-is-diversity-equity-and-inclusion (Accessed on 25 November 2023) 
  • Brown, D (2014) The Future of Reward Management: From Total Reward Strategies to Smart Rewards  Available at https://www.researchgate.net/publication/265628214_The_Future_of_Reward_Management_From_Total_Reward_Strategies_to_Smart_Rewards (Accessed on 25 November 2023) 
  • Cellen, S (2022) Managing reward through the cost of living crisis.  Available at https://kpmg.com/uk/en/home/insights/2022/11/managing-reward.htmls (Accessed on 25 November 2023) 
  • Rose, M (2023) Can Reward Management Combat High Inflation?.   Available at https://www.koganpage.com/hr-learning-development/reward-management-during-the-cost-of-living-crisis (Accessed on 25 November 2023) 
  • Bettelley, C (2020) COVID-19: What should your rewards response be in a crisis?.   Available at https://www.raconteur.net/the-hive/hr-rewards-response-crisis-covid (Accessed on 25 November 2023) 
  • McKeon, D (2020)5 Ways To Increase The Effectiveness Of Your Total Rewards Programs During a Crisis.   Available athttps://www.arielgroup.com/5-ways-to-increase-the-effectiveness-of-your-total-rewards-programs-during-a-crisis/#:~:text=5%20Ways%20To%20Increase%20The%20Effectiveness%20Of%20Your,Connected%20and%20Recognize%20Strong%20or%20Essential%20Performance%20 (Accessed on 25 November 2023) 
  • Greggu (2017) HR Basics: Total Rewards. Available at:  https://www.youtube.com/watch?v=WrDpMmHlobA&t=1s (Accessed: 25 November 2023).
  • Hathaway, C (2018) The future for rewards in a changing world. Available at:  https://www.hrmagazine.co.uk/content/blogs/the-future-for-rewards-in-a-changing-world (Accessed: 25 November 2023).

 

 


Comments

  1. S. D. S. K. Kumara (E205009)November 27, 2023 at 8:42 AM

    Very Good article Channa. Actually, Regular assessments and adjustments to rewards strategies can help organizations align with the changing needs and expectations of employees.

    ReplyDelete
    Replies
    1. Channa MedewelaNovember 28, 2023 at 7:36 AM

      Absolutely, regular assessments and adjustments to reward strategies are critical for organizations to stay responsive to the evolving needs and expectations of employees.

      Changing Workforce Dynamics -

      Workforce demographics, expectations, and preferences change over time. Younger generations entering the workforce often have different priorities and expectations compared to previous generations. Regular assessments allow organizations to adapt their reward strategies to meet the expectations of a diverse workforce.


      Market Competitiveness -

      The external job market is dynamic, and compensation trends can change. Regular assessments help organizations ensure that their compensation and benefits packages remain competitive. This is essential for attracting and retaining top talent.

      Performance and Business Goals-

      Business goals and priorities can shift, and as a result, the criteria for rewarding performance may need to be adjusted. Regular assessments help align reward strategies with current organizational objectives and key performance indicators.
      Employee Engagement and Satisfaction:

      Employee satisfaction and engagement levels can be influenced by various factors. Regular assessments enable organizations to gather feedback from employees and make necessary adjustments to enhance job satisfaction and engagement through the reward system.

      Retention Strategies-

      As employee turnover is costly for organizations, it's important to continually evaluate the effectiveness of reward strategies in retaining key talent. Assessments can identify areas where improvements or adjustments are needed to enhance employee retention.

      Economic Factors-

      Economic conditions, inflation rates, and cost-of-living adjustments can impact the perceived value of compensation. Regular assessments help organizations make necessary adjustments to ensure that employee rewards remain fair and competitive in the context of economic changes.

      Legal and Regulatory Compliance-

      Employment laws and regulations may change over time. Regular assessments of reward strategies help ensure compliance with the latest legal and regulatory requirements, avoiding potential legal issues.

      Technological Advances-

      Advances in technology can impact the way employees work and collaborate. Remote work, flexible schedules, and digital communication tools are examples of trends that can influence the design of reward strategies. Regular assessments help organizations adapt to these technological changes.

      Employee Preferences:

      Employee preferences for certain types of rewards or benefits may shift. For example, there may be a growing interest in wellness programs or flexible work arrangements. Regular assessments help organizations tailor their reward offerings to match current employee preferences.

      Organizational Culture:

      As organizational culture evolves, so too should the reward system. Assessments help organizations ensure that their reward strategies align with the cultural values and principles they wish to promote

      Delete
  2. Masha Rupasinghe.November 28, 2023 at 6:01 AM

    This blog article provides practical insights on enhancing organizational effectiveness in times of crisis. Creative thinking about pay, leveraging employee benefit plans, and promoting work-life balance programs demonstrate adaptability to challenging situations. The emphasis on continuing learning and development discussions underscores a commitment to employee growth, even in uncertain times. The importance of staying connected and recognizing strong or essential performance reinforces the value of a supportive and appreciative workplace culture during crises.

    ReplyDelete
  3. Channa MedewelaNovember 28, 2023 at 7:42 AM

    Further , the ability to respond rapidly to a crisis, coupled with strategic use of social media, is a critical aspect of modern crisis communication. It not only helps mitigate immediate damage but also contributes to long-term resilience and reputation management.

    ReplyDelete
  4. Channa MedewelaNovember 28, 2023 at 8:31 PM

    Thanks Buddhika , it's novel idea, comments on DEI included to the blog post.

    ReplyDelete
  5. V.N. Haputhantri.November 28, 2023 at 10:23 PM

    Yes Mr. Channa. Strategic adjustments to Total Rewards programs during a crisis are vital. From creative pay solutions to promoting work-life balance, these actions help maintain employee well-being and organizational effectiveness.

    ReplyDelete

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