Compensation and Benefits

Overview

It is universally accepted that reward is more than money. We also believe that the traditional purpose of reward - to attract, retain and motivate employees - still holds true. As organisations globally face significant disruption from multiple forces, the importance of reassessing their total reward offerings have become greater than ever. Being able to reassess, calculate and effectively communicate the value of the full suite of rewards (including some non-financial aspects, recognition, and benefits), instead of focusing on selected elements like variable pay alone, will be key to ensuring that employees understand the competitiveness of your unique employee value proposition. This enables organisations to continue to attract and retain the talent they need to compete against these threats, but also to capitalise on new opportunities. We also know more now than ever about the complex preferences and needs of the modern workforce, and the factors that drive discretionary effort. Organisations are increasingly viewing Total Reward as an investment - seeking returns that support your performance objectives, drive a connection to organisational value and purpose, and even allowing ‘personalisation’ of reward and benefit offerings. Furthermore, companies are also leveraging all dimensions of their total reward framework to drive business and financial success.

In reviewing your Total Reward Strategy, we address the following six key elements:

Assist in reviewing your Total Reward Strategy including validating or enhancing your Total Reward Principles to guide future reward and performance work and ensure alignment to overall organisational strategic priorities.

Challenge and/or validate your existing Career Levelling Framework that supports transparency around what career progression looks like and that underpins your fixed pay remuneration structure.

Your Fixed Pay Remuneration Structure is interconnected to your career levelling framework with pay bands sitting alongside the different ‘levels’ developed within your organisation having regard to market comparatives and your desired positioning as set out in your Total Reward Strategy.

Testing your Performance Management Framework and validating whether it is supporting your people by defining what high performance looks like, guiding managers in setting fixed pay and support your people to progress through your organisation by setting goals to support their progression through your career levels.

Reviewing your Non-Financial Rewards Strategy that enhances total reward on offer at your organisation to attract, motivate and retain talent. These include testing your current recognition programs and non-financial rewards such as career training/development, flexible working and health and well-being initiatives.

Testing your Variable Pay Strategy including whether your guidelines on eligibility, quantum (informed by your desired positioning of total pay), award frequency, performance conditions and periods continue to align with your strategy.

These components are all interconnected and can only be optimised through consideration of each individual element and its relationship to the other.

At PwC, we support you in challenging and validating your Performance and Reward Framework, offering insights and opportunities for enhancement to meet your needs.