Is it really about offering the best pay? What are they doing that makes the difference?
They are getting the right balance between motivators and hygiene factors in their reward strategy.
The Sunday Times/Best Companies - Top 100 Companies to Work For league tables are published every year in March. Employees are surveyed in participating companies against a range of eight criteria, including Fair Deal. The best rated companies appear in the Top 100. Like Tripadvisor, but for employers.
Is it really about offering the best pay? A number of the Best Companies have financial incentives in place to reward their employees. None of these organisations have an explicit strategy of offering upper quartile pay in their sector. However, a number report having offered organisation-wide pay rises within the last year. What they do offer is a range of financial incentives and benefits.
But what are they doing differently? Some organisations feel they already offer something similar. If you are one of these organisations, you may well wonder how the Best Companies make it work so successfully. What is clear is that these organisations don't always use financial rewards - they don't all have budgets that allow for big bonuses. What these organisations do differently is how they communicate and deliver recognition. For example:
- People feel recognised by people they consider to be important to them - the CEO, their team, their customers. Thank you cards, birthday cards and presents come with a personally hand written note from the CEO or Chairman. At Lewis Silkin, they recognise the contributions of their secretarial team when working overtime - the IT and HR Directors make tea, serve lunch and host a drinks party afterwards.
- What many of these organisations also do is focus on how they communicate the Fair element of Fair Deal. They use clear annual salary reviews, transparent job evaluation, clearly defined criteria for recognition, employee involvement in choosing colleagues. People are more likely to be satisfied with their deal if they know that similarly performing colleagues are receiving a similar deal.
What general principles can we take away? Reward is a curious thing and is based on the balance of two factors - hygiene and motivators. 'Hygiene factors' are things like salary, working conditions and how company policies are applied by managers. 'Motivating factors'can be recognition, responsibility, personal growth, and the nature of the work itself. What the Best Companies can be seen to be doing is getting the right balance between these two elements. How balanced is the reward approach between these two elements in your organisation?
To see the lists of rewards and benefits and to read our full story see www.talentglue.co.uk/news/
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