Performance and Reward Strategies

What is the strategy designed to achieve? For example, levelling up, down, or a compromise position.

A reward strategy is a policy designed to motivate employees through a bundle of financial and non-financial benefits that align with organisational objectives (Armstrong & Taylor, 2023). An HR reward strategy should meet the following fundamentals: meet employees’ needs, meet organisational priorities, enhance the organisation’s reputation as an employer of choice, and communicate the organisation’s mission, values, and goals (Armstrong & Taylor, 2023).

In the given case study, Lena Marker faces a multifaceted challenge in integrating the two working cultures and reward systems of JCE and Yardgreen workers. To this end, the five primary strategic objectives would be: (1) integrate the newly acquired organisation, Yardgreen, into JCE, (2) compare and align incomes, terms and conditions between both worker groups, (3) resolve emergent conflict and dissatisfaction between JCE and Yardgreen workers, (4) recognise and reward the skills, teamwork, and value contribution of JCE and Yardgreen workers, and (5) implement and evaluate the ‘JGE Skills Growth and Team-Working High-Performance’ programme.

It is advised that Lena consider strategically harmonising the interests of JCE and Yardgreen workers to work together effectively. One approach is to thoroughly analyse both organisation's current reward policies and practices (i.e., pay structures, benefits, incentives, recognition, and performance measurements) (Guest, 2007). This will allow for systematically identifying material divisions, overlaps, or inconsistencies between the two organisations’ cultural frameworks and rewards. A rationale can then be presented that aligns with the reward policies, practices, and values of JCE and Yardgreen workers. Communicating the innovative approach will allow for feedback to be shared and concerns addressed before implementing and monitoring its impact on performance (Guest, 2007).

What do you think the role of individual HR practitioners should be in achieving 'better work'?

In designing a reward strategy, analysing the pay levels, pay structures, and pay forms of two organisations involved in a merger are significant facets of a harmonious process (Armstrong & Taylor, 2023). A comprehensive analysis would seek to achieve five strategic objectives: (1) identify potential redundancies where significant differences or overlap exist, (2) ensure fair compensation and equity to identify prevailing discrepancies or inequities, (3) maintain employee motivation and retention of critical employees, (4) safeguard organisational costs by streamlining features of pay, and (5) ensure compliance with relevant laws and regulations, particularly equal pay laws (Armstrong & Taylor, 2023).

In the given case study, Lena Marker is faced with aligning the features of pay accustomed to Yardgreen workers with JCE objectives and anticipating the associated challenges posed by this merger. In line with the five strategic objectives, Lena should comprehensively analyse both worker groups' pay levels, structure, and pay form (Guthrie, 2007). Emphasis should be given to the differences and overlaps in job title, job description, role, and salary, as these factors significantly impact compensation. Additionally, this approach is likely to reveal the types of rewards valued most by both worker groups (Guthrie, 2007).

It is advised for Lena to utilise this information as part of a broader harmonisation strategy by fairly evaluating any unique worker needs or circumstances alongside JCE organisational requirements. This approach should be communicated to both worker groups by transparently explaining the new features of pay, how it was developed, and divulging the impact on workers. Ongoing performance monitoring and evaluation of the new strategy will help to ensure it aligns with JCE’s strategic objectives and that associated issues are addressed (Armstrong & Taylor, 2023).