27 Aug 2020

Innovation in reward strategy: three ways that monetary and non-monetary reward may change

For reward and recognition, COVID-19 has had a polarising impact. For many it has slipped to the bottom of the list, while for others it has become a key focus as we move out of lockdown. But, how should organisations start to structure their reward strategies considering the shift in business and employee priorities?

1. Earned wage access

Approximately 9.6 million jobs were furloughed at 80% pay between 20 April and 9 August, according to figures from Statista. The Joseph Rowntree Foundation’s Call for a stronger social security lifeline for children (June 2020) report also found that, seven in 10 families have experienced increased financial pressure during the pandemic and have had to cut back on essentials, while more than half are now behind on rent or other important bills.

The outbreak has caused financial strain for families across the UK, making now the right time for businesses to invest in financial tools that will help their staff to recover.

One of the key ways organisations can have a lasting and positive impact is by giving employees more control over the way they get paid, through earned wages access schemes. A recent report from the Resolution Foundation outlined that, “the huge growth in payday lending, indicates that when workers are paid can matter” and that “workers should have the right to choose how regularly they get paid”.

A Gartner report, Empower Workers and Energize Your Employment Value Proposition With Flexible Earned Wage Access (July 2019) revealed that, by 2023, 20% of US businesses with hourly paid workers will deploy a flexible earned wage access solution, with the UK trailing behind in terms of pay innovation. Reward through pay is no longer just about how much people are paid, it’s how they are paid and how much control they have.

2. Consultative rewards

Staff on the frontline have worked tirelessly to keep the country running throughout the coronavirus outbreak. Organisations need to think carefully about how they show genuine recognition for these staff members. A great way to do this is by giving frontline workers a forum through which they can suggest the right rewards and recognition they would like to see in the form of business improvements or changes.

Communication is a critical part of engagement, with “employees more to likely engage and contribute when there’s an open communication culture,” according to CIPD’s 2020 Employee Communication report.

This, in time, will help to grow engagement and loyalty with staff when they see you take on board some of their suggestions and return some of the goodwill they demonstrated throughout the outbreak.

3. Make it digital

Remote working doesn’t mean you have to do away with the high fives and cheers that would usually happen across the desk. Digital reward and recognition platforms can help you to maintain that team celebration without being in the office.

What’s more, in the hands of peers and managers, recognition can become a huge bonding tool for organisations, something that is particularly important during remote working. And can help to reduce the risk of working in silos, something that has been a side effect of not being in the office.

This article is provided by Wagestream.