CHARACTERISTICS OF REWARD STRATEGY
As Murlis (1996) points out: ’Reward strategy will be characterised by diversity
and conditioned both by the legacy of the past and the realities of the future.’
All reward strategies are different, just as all organizations are different. Of
course, similar aspects of reward will be covered in the strategies of different
organizations but they will be treated differently in accordance with variations
between organizations in their contexts, strategies and cultures.
Reward strategists may have a clear idea of what needs to be done but they
have to take account of the views of top management and be prepared to
persuade them with convincing arguments that action needs to be taken.
They have to take particular account of financial considerations — the concept
of ‘affordability’ looms large in the minds of chief executives and financial
directors, who will need to be convinced that an investment in rewards will
pay off. They also have to convince employees and their representatives that
the reward strategy will meet their needs as well as business needs.