Survey results indicate that the majority of rewards plans are ineffective, costly and even worse counterproductive
Boston, MA (PRWEB) June 11, 2009
The Grahall Research Institute, part of Grahall, LLC announces the release of its Total Rewards Strategy Alignment Study.
This study reviewed business strategy, company culture, reward programs, governance, management, and many other influences and factors that affect rewards design.
This cross-industry ground breaking research analyzed the factors influencing the design of Total Rewards Programs; their alignment with corporate goals and impact on business performance. "Survey results indicate that the majority of rewards plans are ineffective, costly and even worse counterproductive," explained Michael Graham, a consultant at Grahall.
Key findings include:
- A Lack of Rewards Success - According to our research, over 80% of the companies in a recent study said their pay, benefits and rewards programs are not meeting their business objectives. But it's easy to see why when 32% of those companies claim they have not changed or updated their rewards strategy in the last five years, and 34% claim their programs haven't been updated in the recent past.
- Limited Linkage to Business and People Strategy - When asked about the degree of linkage to business strategy, sampled firms responded with a disappointingly low level of linkage. 65% of firms indicated that their linkage to business strategy was at best average. And of those firms, the majority said there was little or no linkage to business strategy.
- Limited Key Stakeholder Input - Of those organizations that did go through a formal process, most involved top management and Human Resources; however, there was no seat at the table for a lot of key stakeholders - nearly 80% of employees and close to 50% of middle/line management and finance didn't sit in on the deliberations. As a result, over half of the firms in our study indicated that their new set of programs were not understood by managers and employees.
This study provides additional insights into how the data can be viewed, interpreted and made actionable. It will help boards, executives, employees and stakeholders understand how reward strategy can facilitate the execution of tactical and strategic business objectives. Graham adds, "Rewards are the most powerful way to motivate employees to accomplish business results, especially, when they are aligned with business strategy." This will be critical in the current environment.
ABOUT GRAHALL, LLC
Grahall is a cutting edge intellectual capital organization that collects and translates business, human resources, and investment information into useful forms for organizations seeking to convert knowledge assets into financial, personal, and business success. As a thought leader with a profound understanding of its business and marketplace, Grahall Partners communicates its insight and vision through consultancy services, survey and research publications, investment alerts, total rewards, in-person and online training, media, and other information distribution channels.
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