1. EVIDENCE-BASED REWARD

2. Extent to which evaluation takes place: e-reward 2009
Part – 32%
Full – 45%
None – 27%

3. The five most popular methods used to evaluate reward effectiveness: e-reward 2009
External market survey *
Staff attitude survey *
Benchmarking *
Internal data analysis *
Equal pay review *
* Number of respondents out of 192 using method

4. The five most popular criteria used to evaluate reward effectiveness: e-reward 2009
Financial impact *
External benchmarking *
HR outcomes *
Stakeholder views *
Business outcomes *
* Number of respondents out of 192 using criteria

5. Reasons for not conducting evaluations
Lack of
resources or time
48%
19%
Lack of data
15%
Senior management indifference
10%
Organizational changes
Lack of analytical skills 8%

6. The concept of evidence-based reward

7. An evidence orientation shows that decision quality is a direct function of available facts.
Denise Rousseau

8. The management of reward systems based on fact rather than opinion, on understanding rather than assumptions, on grounded theory rather than dogma.

9. The EBRM model

10. Set goals and success criteria
A model of evidence-based reward management
Review
Set goals and success criteria
Implement
Measure
Evaluate
Develop

11. Examples of reward objectives and success criteria
This objective will have been successfully achieved when:
Reward innovation objective
Develop performance culture
There is evidence of performance
improvement from
performance indicators
Scores in the engagement
survey have increased by x%
Enhance engagement
Develop employee value
proposition
There is evidence that attraction
and
retention rates have improved
Introduce contribution-related pay
There is evidence that it has
improved performance

12. Examples of reward evaluation measures
Reward strategy
Clear reward strategy
and annual plan supporting
business strategy
Financial and non-financial
recognition for behaviours
in line with strategy and values
Financial and non-financial
rewards
Reward management general
Quantity, quality and frequency of
reward communications
Engagement
Surveyed overall employee
engagement levels

13. What respondents to e-reward survey said

14. Do:
Do it! Why should anyone spend £xxxxm per annum and not try and understand each element’s effectiveness (and leverage it more)?
Be realistic about cause and effect
Make sure you align the measures to the goals of your organization

15. Don’t: … vow to measure everything.
… get too bogged down in the detail.
… overcomplicate issues – try to do too much at once.
… simply follow the CEO’s latest fad