RS Components, My Reward
In 2008, RS Components, like many other employers, felt the effects of the economic downturn and had to implement redundancies, pay freezes and bonus cuts. As part of efforts to re-engage its workforce during this difficult time, the firm introduced a branded total reward scheme. Extensive research was conducted with stakeholders to ensure its strategy was aligned with its business goals and culture.
The firm’s scheme, My Reward, included a wide range of benefits and services specifically linked to wider business goals (an aspect that particularly impressed the judges).
To build a comprehensive picture of what working for RS Components meant, it created one total reward package that groups benefits under three categories: My Money, My Future and My Lifestyle. In June 2009, the firm illustrated these aspects of its benefits package by sending out paper-based total reward statements. In 2011 it †launched online statements, which also included employees’ annual pension statement.
My Reward was also promoted with a clever communications campaign that involved the launch of an internet reward portal which employees can access from home, benefits champions and company-wide fruit drops.
According to the judges, one of RS Components’ biggest achievements was to introduce non-financial rewards which link performance to its business objectives. These include a management development programme, career development support and long-service recognition. A points-based recognition scheme was also used to reward high performance and excellent behaviours.
The City and Guilds of London Institute, Imagine – entered by Thomsons Online Benefits
After identifying all the different roles essential to its business, the education provider developed a total reward strategy that complemented board-led objectives for the organisation and could satisfy union demands without increasing the pay bill. City and Guilds developed a colourful brand for the scheme accompanied by the strapline ‘Imagine benefits that work for you’. An online benefits portal was set up, which also included an electronic
total reward statement.
Towry, Total Reward
This entrant successfully maintained the excellent total reward strategy it adopted in 2008. It has sustained a high proportion of base pay to variable pay to reflect the firm’s move away from commission-based charging to fee-based billing. Bonus awards, for example, are much higher for good performance than for average (100% higher).
It use shares and share options as part of employees’ total compensation and all permanent staff are awarded 3,000 company shares shortly after joining.
The judges thought this entrant took total reward statements to the next level and were particularly impressed with how it provided personalised messages to employees. In order to make a connection between individual performance, business performance and reward, a message is given from the employee’s senior manager. This
provides details of significant milestones, such as an exceptional performance review. An introduction is also provided from the CEO of the part of Zurich the employee works for.
Read more about the Award winners