How Arriva Rail London’s clear reward structure created a great relationship with employees

Arriva Rail London (ARL) is the train operating company responsible for running the London Overground network. It works under a concession agreement with Transport for London. Oli Gant, ARL’s HR director, came to pay and reward consultancy 3R Strategy with clear goals: to create a consistent, well-defined reward strategy and align it to the company’s broader group scheme.

How Arriva Rail London’s clear reward structure created a great relationship with employees

The challenge
Because many of ARL’s 1,400 employees had transferred from other employers, there was no clear-cut and consistent pay and grading structure in place.

Not having a proper reward strategy created significant challenges for ARL. It meant that the HR team had no simple way to reward, develop and manage its people. 

The solution
To make ARL’s reward strategy more systematic, 3R Strategy reviewed its current system and job evaluations. We then needed to create and roll out the new pay structure.

We kicked off the review process with a workshop; this helped us to understand ARL’s current approach to reward and recognition. Insights from this session then helped us to form the strategy behind the company’s future reward principles.  

We worked closely with the company’s HR team to model various scenarios, defining the purpose of base pay and bonuses. 

Based on this analysis, and what we know has worked well elsewhere, we then facilitated two sessions with the Managing Director and executive team. These meetings helped us shape the development of ARL’s future reward principles. 

We reviewed the market data to recommend the best salary data for Arriva Rail London. During this process, we collaborated closely with Oli Gant and his team, to be confident we were getting the most accurate and relevant results.

We then advised him to introduce a pay structure that aligned with the new reward principles, as well as to the broader group framework. We also drew up a draft pay policy for the HR team to refine. 

The results
Oli and his team were delighted with our recommendations; they will be engaging with the company’s board and unions to roll out the new reward strategy. With the establishment of the new pay policy, ARL aim to provide their employees with a direct link between their career path and salary. 

“3R Strategy has been helpful, diligent and professional. The biggest benefit to working with Rameez and his team is that we now have one clear reward strategy in place. Having that clarity and visibility throughout the organisation will help us maintain great relationships with employees,” says Oli Gant, ARL HR director.

The author is Rameez Kaleem, director at 3R Strategy. 

This article is sponsored by 3R Strategy. 

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