Companies with stale and aging performance reward practices run the risk of losing valuable IT workers and failing to attract new people in an increasingly tough market for human capital, tech analyst Gartner has warned.
To reverse this cycle, employers will need to put effective reward programmes in place to keep employees highly engaged and satisfied in delivering desired results.
“Although monetary rewards are very important, they are no longer the only important reward factor when it comes to developing a compelling employer value proposition,” said Lily Mok, research director for Gartner Executive Programme’s human capital management content development group.
“Non-monetary rewards, such as career development, recognition, and work-life balance, are increasingly effective in helping to create a more personally rewarding total work experience and contributing to a more engaged and satisfied IT workforce.”
Integrating work experience rewards along with financial rewards, including pay and benefits, to form a total rewards package is a balancing act, she said.
Mok said that IT and human resources (HR) leaders need to pay specific attention to three key factors that will increase the chances of program acceptance across the organisation.
These three key factors include identifying and addressing the cultural change required to support the work experience rewards initiative, understanding that managers are the key link to successful work experience rewards initiatives and involving employees will greatly increase the chances for program success
“Regardless of the difficulty, a thoughtful and rigorous approach to measuring and optimising return on investment in work experience reward programs can help an organisation effectively allocate reward dollars as elements of the total rewards model that are proven to be drivers of performance, employee satisfaction and retention,” Mok said.
“This, in turn, can help better enable an organisation to attract, retain and engage desired talent to create value for the company, its customers and shareholders,” she said.
By John Kennedy