The Reward Management Toolkit

Tool 02Reward strategy

Introduction

A reward strategy provides a business- and people-focused description of what the organization wants to do about reward over the next few years and how it intends to do it. The need for a reward strategy may be identified from a review of the current reward arrangements and situation as described in Tool 1. The aim of reward strategy is to provide the organization with a sense of purpose and direction in delivering reward programmes that support the achievement of business and HR goals and meet the needs of stakeholders. It defines pathways that link the needs of the business and its people with the reward policies and practices of the organization and thereby communicates and explain these practices.

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