In many organizations, the remuneration policy is treated as a final piece. Only when the (new) organizational structure is in place and people are allocated to functions and roles, organizations take a look at their remuneration practice. And at how they pay their employees compared with the market. We often see this is standard practice, but it is not the right way to decide on rewards!
Tranquility and trust
Reward is a fundamental part of an organization’s governance. It determines the way people are being managed, motivated and valued. (Do you believe in Homo Economicus or do you have a different view on the world?) At board level, there’s little discussion about reward philosophy while it has a major impact on how companies organize their process and control systems (including pay). Reward is thus an inherent part of the strategy. A coherent strategy which includes an appropriate remuneration policy, leads to tranquility and trust in the organization, provided that it is applied in a consistent and fair manner.
Differentiate in the market
STYR facilitates discussions within organizations about their management philosophy. We use the most recent motivational theories from psychology, economics and anthropology. We develop a remuneration policy, a structure and instruments in close cooperation with organizations. We take a close look at both primary and secondary compensation and benefits as well as non-financial rewards, such as development opportunities, leadership, work-life balance, autonomy, work environment, etc. We try to entice organizations to not just follow the market, but to opt for a remuneration policy that fits with their mission and identity. In other words, a remuneration policy that helps a company to differentiate itself in the market.