Engagement is often used as a description for communication or change management but in fact it’s much more. An engaged employee is involved in, and enthusiastic about the organisation they work for and supports the organisation's interests. So we can say with certainty that engagement positively affects performance, customer satisfaction and innovation. The case is clear: engagement impacts the bottom line.
But what is the role of reward in creating engagement? And why is pay and grading so important? Each organisation is different but clear themes emerge. Employees who feel their pay is unfair, and managers who cannot make and justify consistent and robust pay decisions, will demotivate. Without a solid foundation to pay and grading, any positive practices to engage employees are at risk of being viewed through a negative lens. Investing in your reward ‘pillars’ (base pay, variable pay, recognition and benefits) and ensuring they align with your engagement agenda, will not only improve engagement, but will also ensure your other activities on the engagement action plan have a chance of success. When you look at it, a sense of fairness is absolutely essential to employee engagement and good pay and reward is essential to a feeling of sense of fairness. So what does good pay and reward look like?
Read more in our engagement iview.
