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Is your reward program really engaging people?

Tom McMullen, writing recently on the Hay Group blog, notes that a recent study of World@Work members found only 11% of organizations conduct a formal ROI assessment of their reward programs. However, 48% of respondents said they planned to more rigorously assess their reward programs and do this more frequently over the next two to three years. There are a number of benefits to more comprehensively assess the effectiveness of rewards programs. These include:
  • Identifying problems early in a rewards program’s rollout so corrections can be made before resources are wasted or other damage is done
  • Providing necessary feedback for improving program effectiveness in a constantly changing business environment
  • Holding management responsible for implementing the rewards program
  • Building employee and management commitment to the rewards program by engaging them in the evaluation and using their input to correct problems
  • Reinforcing pay values, policies and programs to employees and managers
These findings indicate substantial opportunity for improving the assessment of reward programs. Senior management has considerable interest in assessing rewards program effectiveness, and they also understand that assessment has multiple dimension – i.e., measuring perceptions as well as results. Read more >
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