Corby-based RS Components, part of the Electrocomponents Group, has been analysing its UK reward strategy for the past two years. The recession has increased the importance of this work.
The global company, which distributes industrial components, went through a major restructuring programme and, from a business point of view, is focusing increasingly on e-commerce.†
Because these changes would inevitably affect employees, the company took steps to address staff engagement levels and worked with consultancy Watson Wyatt (now part of Towers Watson) to raise the profile of total reward.
Karl Ward, group reward manager at RS Components, says: “People were not leaving, but the concern was they might be quitting psychologically and staying. We therefore realised now was the time to start engaging with employees on a total reward basis and putting in front of them a better understanding of all the elements of reward available to them.”
Personalised total reward statements were sent out to all employees’ home addresses.†
These contained details of individuals’ salaries, allowances and benefits. The statement also highlighted some of the less tangible elements of employees’ reward package, such as training and development and opportunities for promotion.
RS Components has put a lot of effort into establishing a brand around total reward that will be used as a platform for future total reward communications.