cipd.co.uk/subjects/corpstrtgy/general/strathrm.htm?IsSrchRes=1).
Secondly, when designing the reward strategy, the HR manager must pay high attention to the stages earlier described for the HRM strategy. This will give him a clue about the 'light at the end of the tunnel', that is the main goal that the organization strives to achieve. According to such findings, he will establish the behaviors he wants to encourage and the types of rewards that are needed for stimulating the respective conducts.
One of the most recommended and in fashion approaches is the total reward strategy. Unlike earlier times which used to lay exclusive stress on pecuniary advantages, contemporary specialists have found that employees are motivated by both financial rewards encompassing base pay, variable pay, share ownership, benefits, and non-financial rewards, comprising recognition, quality of working life, career opportunities and opportunity to develop skills.
According to Thompson, some of the most important features that such strategy boasts are: the strategic approach ensuring that rewards are in line with business strategy, the people-centered nature claiming that human resources are the main source fueling the competitive advantage, and the customized outline which allows rewards to be flexible, thus "meeting employees' needs, lifestyle and stage of life."
Some of the elements included in a total reward scheme are: freedom and autonomy at work, the possibility of career development, opportunity for personal growth, preferred office space, flexible working hours and benefits etc. Although total reward strategy is considered to be delicate because of the difficulty to draw a firm, accurate delimitation between tangible and intangible rewards, this is one of the most permissive tools in terms of molding incentives over the individuals' traits and the company's needs. Consequently, it represents a valuable lever to strategic HRM (http://www.cipd.co.uk/subjects/pay/general/totrewdqf.htm).
According to CIPD's findings, reward strategies fail most of the times because of...
Additionally, the institute highlights the lack of support from top managers, staff, unions or the inadequate communication (http://www.cipd.co.uk/subjects/corpstrtgy/general/strathrm.htm?IsSrchRes=1).Therefore, the seventh phase of the HRM strategy - implementation and evaluation of plans has a considerable importance (http://www.accel-team.com/human_resources/hrm_08.html).
To conclude with, not only must a reward strategy be appropriately designed, but it must also be appropriately implemented. Therefore, in order to perform a coherent integration within the HRM strategy, rewards should be closely related to its objectives and mangers responsible for implementing them should be prepared and convinced to act according to this integrative approach.
Bibliography
De Silva, S.R. (1998). Trends in human resource management and management objectives. On the Internet at: www.ilo.org/public/english/dialogue/actemp/papers/1998/srshrm.htm. Retrieved March 31.
Developing a HRM strategy (2007). On the Internet at: www.accel-team.com/human_resources/hrm_08.html. Retrieved March 31.
More flexibility in reward strategies could assist public sector efficiency drives (2006). On the Internet at http://www.cipd.co.uk/pressoffice/_articles/pr_09022006.htm?IsSrchRes=1.Retrieved March 31, 2007.
Reward strategy (2007). On the Internet at http://www.cipd.co.uk/subjects/corpstrtgy/general/strathrm.htm?IsSrchRes=1.Retrieved March 31, 2007.
Strategic Human Resource Management. An overview (2007). On the Internet at http://www.cipd.co.uk/subjects/corpstrtgy/general/strathrm.htm?IsSrchRes=1.Retrieved March 31, 2007.
The Best Ways to Reward Employees. Having an effective reward program in place can help solve many of your HR issues (2005). On the Internet at: www.administaff.com/HR_tips_reward_employees.asp.Retreieved Mrch 31.
Total reward (2006). On the Internet at http://www.cipd.co.uk/subjects/pay/general/totrewdqf.htm. Retrieved March 31, 2007.
