Armstrong's Handbook of Human Resource Management Practice, 16th Edition

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Reward strategy

Introduction

Reward strategy is concerned with the policies and practices required to ensure that the value of people and the contribution they make to achieving organizational, departmental and team goals is recognized and rewarded. It provides the impetus for reward system design and operation in order to achieve three major objectives: performance, competitiveness and fairness. It aims to provide answers to two basic questions: (1) What do we need to do about our reward practices to ensure that they are fit for purpose? and (2) How do we intend to do it? The aim is to provide a sense of purpose and direction and a basis for developing and implementing reward policies, practices and processes. In the words of Duncan Brown ...