Various factors influence what type of rewards, both monetary and non-monetary businesses should offer, from the composition of its workforce to the way staff expectations shape what is required.
Let’s consider the different facets New Zealand organisations in particular need to consider in their strategies and how to approach effective rewards management.
The biggest challenges for engaging kiwi employees
There are a few things to consider about engaging employees before we can venture into the anatomy of a well-planned reward strategy.
1. Basics around performance measurement
At a fundamental level, pay needs to be right, fair and equitable, ideally functioning within the total rewards model. If an organisation doesn’t meet this basic need of satisfactory remuneration to its employees, staff won’t be willing to perform as well.
2. Internal motivating factors for employees
Where the non-profit sector benefits from staff having a sense of purpose and connection with their organisation’s mission, commercially oriented businesses may struggle with this and need to work harder to build a strong connection with their brand and purpose.
Examples of internal motivating factors for the employees of these other sectors could be non-monetary rewards such as a recognition letter from management, half a day annual leave or a paid lunch out with the team. Surveying the staff to find out what interests them and what would motivate them could help address this challenge.
3. Flexible working
As the demographics of the workforce change alongside technological advancements, expectations differ. Increasingly, flexible working conditions are becoming a must-have for businesses if they want to attract and retain workers. A circumstance further exacerbated by changed family dynamics, where two working parents need to fit their schedule around school hours.
Aligning rewards with changing expectations
Whilst recent research surveys show that 82 per cent of organisations offer some form of work-life balance, the issue is that this consists of a number of factors, influenced by increased expectations of remote working, part-time solutions and general flexibility. Despite these transparent shifts, many kiwi businesses are still slow to react.
As such, a key step many organisations need to take is pre-empting the question of flexible work by potential employees and putting a formal policy in place.
Why not offer additional paid vacation to high performers or take staff out for lunch after meeting their KPI’s? This approach can attract highly qualified people who are motivated by factors other than pure remuneration.
The essence of the message is that to forge forward successfully, kiwi businesses need to be aware of shifting workforce expectations and how non-monetary rewards can drive employee engagement, therefore adding to the bottom line by effect.
For more insights or advice for your organisation, reach out to our team today.