Reward system
STATS
Suggested Reading Time
45 min.
Suggested Implementation Time
The elements of appropriate reward system can be implemented in few days.
Role of Participants involved
Learners need to read the text and to reflect on their own reward system by filling the templates. Additional support can be received in the DIGITRANS incubator spaces.
Templates/Printouts
Description:
The aim of the module is to ensure that learners understand how to empower and reward employees who invest in digital transformation processes and embrace the change management. The rewards have to encourage emergence of company culture that is customer-centric, digitally oriented and project-based and encourage continuous learning.
The reward system has to reinforce new types of behaviours oriented toward digital innovation, entepreneurial mind-sets and risk-taking attitudes, and include different elements such as performance management, promotion criteria, and incentive systems.
Stages:
1. Design stage:
- Build reward strategies that support organisational objectives, align performance and create value for shareholders. Create employee incentive programs that drive productivity, behaviours and employee engagement;
- Design strategically and culturally aligned performance management approaches;
- Ensure performance and reward frameworks contribute to attraction, retention and staff motivation.
2. Implementation stage:
- Develop informative, simple and engaging documentation to explain reward arrangement, incentive plans, and performance management systems;
- Develop a clear and appropriate transition plan to move between existing and future reward and performance arrangements;
- Build effective communication and change strategies to ensure real behaviour change through a leader-led engagenement process;
- Provide advice and develop strategies for engaging with shareholders and advisers.
3. Manage and support:
- Conduct benchmarking of remuneration and structures to ensure market competitiveness;
- Ensure reward plans are based on real insight, robust data analytics/modelling, and operate efficiently and effectively from an accounting, legal, tax and corporate governance perspective;
- Inform and support compliance with new and emerging legislation and corporate governance requirements.