This unit focuses on the business factors that influence reward policies, as well as the financial drivers of the organization and the impact of reward costs. It explores the role of people practice, and how it can help managers make professional reward judgments. It also looks at the impact of rewarding performance.

CIPD Insight factsheets:

The CIPD factsheet on strategic reward and total reward provides an overview of the various aspects that can be explored in terms of designing and developing a reward strategy.
The CIPD factsheet ‘reward – an introduction provides an overview of the options organizations can use to reward people and recognize their contributions.

CIPD reports:

The CIPD reward management strategy report includes a survey that focused on the impact of COVID-19 and reward practices in the UK.

CIPD Podcasts:

The CIPD changing landscape of reward podcasts provides an overview of the role reward strategies play in attracting the best talent. It also looks at the innovative strategies organizations are developing to recognize their employees.
The CIPD executive pay and the psychology of motivation podcast look at the pay gap and whether reward packages are much of a motivator.

Case Study

Home International is a furniture manufacturer and online retailer. The organization is a family-owned business that was started over 30 years ago, and currently employs 175 people on full-time or part-time contracts in the UK. They have offices based in Oxford, Munich, Santa Cruz, Suez, and Kuala Lumpur.  The organization is growing and reaching a wider market due to the growth of online furniture shopping.

The organization has grown during the pandemic, as clients have decided to invest in their homes. More and more people are changing their habits and purchasing sustainable products, which is seen as a positive because Home International specializes in this area.

However, the business is currently in the process of reviewing all its policies, as Brexit means there have been several changes to rules regarding importing and exporting. This review includes people management processes in areas such as performance and reward. The objective is to cut costs, improve profits and reduce turnover.

Each office has a factory where the furniture is made and distributed on a global scale. Recently, the organization has seen a higher turnover among the factory operatives who are aged 18 – 32 years old, whereas the office employees stick around for longer, and have an age range from 48 to 68 years old.

You have been tasked to provide the following:

Task One: A presentation on ‘Understanding the impact of reward approaches and packages. Also, the role of people professionals in supporting line managers to make reward decisions
Task Two: A briefing paper on, ‘Benchmarking data to inform reward approaches’

Preparation for Tasks:

Plan your assessment work with your assessor at the start of the assignment. Where appropriate, agree on milestones so they can help you monitor your progress
Refer to the indicative content in the unit guide and support your evidence
Pay attention to how your evidence is presented. Remember you are working in the People Development Team for this task
Ensure that the evidence generated for this assessment remains your own work

You will also benefit from:

Acting on formative feedback from your assessor
Reflecting on your own experiences of learning opportunities, training, and continuing professional development
Taking advantage of the CIPD Factsheets, Reports and Podcasts, and any other online material on these topics

Task One:  Presentation to key stakeholders

The HR director has asked you to create a presentation that will be delivered to the key stakeholders in the business. This presentation will focus on the approaches to reward and the role people professionals play in supporting line managers when developing reward packages. This presentation will also link in methods of performance management to support line management decisions. You will need to include research around the area of reward and performance management and link in business examples to support your research and show further depth.

This presentation will need to be created in PowerPoint and have accompanying notes pages to expand on ideas and concepts.

Your presentation notes pages must include:

An evaluation of two of the principles of reward (intrinsic and extrinsic reward and integrating reward with business objectives)
An evaluation as to why organizational culture and performance management are important to the principles of reward
An explanation of how Home International can implement new policy initiatives and practices in relation to rewards across the organization
An explanation of how both people and organizational performance within Home International can impact its approach to rewards both positively and negatively (1.3).
Using Home International and a second business example, produce a comparison of performance-related pay and intrinsic rewards as examples of benefits offered by each different organization
An assessment of the benefits and drawbacks of how extrinsic and intrinsic rewards contribute to improved employee contribution and sustained organizational performance
An assessment of the effectiveness of performance review meetings and 360-degree feedback as approaches to performance management, including a review of the role that the people practice professionals within Home International can take to support you as a line manager, to ensure consistent and appropriate reward judgments are made
An explanation as to how line managers can make reward judgments based on organizational approaches to reward
A review of how people practice professionals can support line managers to make consistent and appropriate reward judgments. The CIPD has provided a document called ‘The People Profession: now and for the future, which can help you with this.

 

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