By Nicol Mullins, chartered reward specialist and executive committee member of the South African Reward Association (SARA)

For most organisations, the importance of keeping their employees productive has never been more critical. For some, their very survival may depend on it.

The way in which they structure rewards, that is, employee remuneration, benefits and incentives as a total package, has a significant influence on how well they will achieve that objective.

Yet, life has changed beyond recognition, affecting workers and their perception of which rewards are most meaningful to them now.

To maintain productivity, employers need to look at rewards from a completely different angle, one that considers the personal and individual needs of each employee.

The value of rewards
Rewards generally take the form of monetary and non-monetary compensation. In South Africa, in addition to basic pay, monetary compensation traditionally includes a retirement fund, medical cover and risk insurance, which form the basis of the total reward package.

With corporate finances becoming stretched, greater emphasis on non-monetary rewards may give organisations the edge they are looking for. Specifically, this means better psychological support for employees and greater flexibility in employment conditions.

Incidentally, this class of reward is exactly what many employees desire right now. For example, the ability to work from home allows exployees to save on travel while being more available to their families during these unprecedented times.

However, this approach requires a change in attitude in two main areas.

Firstly, employers need to think of rewards not as a cost to the company but as an enabler of productivity. It is therefore better to focus on developing rewards that encourage productivity in a given context rather than taking an approach of cutting costs across the board.

Secondly, the reward offering needs to create an environment of trust.

An environment of trust
Giving employees greater flexibility in how they carry out their duties means trusting that they will do so to the best of their abilities. After all, if their organisation doesn’t trust them, why did they hire them in the first place?

At the same time, employers can win their trust by understanding that their personal lives are severely affected by the pandemic, both emotionally and financially, and providing support where possible and appropriate.

An environment of trust is one of psychological safety where employees feel cared for, trusted and valued. Without this foundation, employers will find it difficult to implement new benefits offerings simply because they will not expect them to succeed and therefore will not achieve their desired results or potential.

Flexible conditions
Allowing employees to work from home is one way of displaying trust.

Organisations can also consider more flexible working times. Employees are undoubtedly working longer hours, so they need more frequent breaks. A quarter-day or half-day leave offering would allow them to take care of personal priorities and needs. This is also a good opportunity to experiment with shorter work weeks.

Parents may need to drop their children at school, so scheduling meetings after 9 am and before 2 pm would respect that constraint.

On the more practical side, a canteen on premises ensures that employees do not need to leave the building to eat. Complementing this with a play room or relaxation room will ensure they are more comfortable being at work.

Communication
However, the best way to develop new rewards is for employers to leverage the trust environment they creat. Instead of designing one-size-fits-all reward packages, they should realise that workers have different needs based on their specific life stage.

By communicating with each staff member, they can individualise rewards that will evoke the best performance from their people. For example, should a retirement fund be mandatory or should they have the option to contribute to benefits that best suit their immediate needs?

Whatever the final outcome, leaders must motivate their employees to perform like never before, and this will require them to try new, innovative and creative approaches to keep rewards relevant.

ENDS
 
MEDIA CONTACT: Rosa-Mari Le Roux, 060 995 6277, [email protected], www.atthatpoint.co.za 

For more information on SARA please visit:
Website: www.sara.co.za 
Twitter: @SA_reward
LinkedIn: South African Reward Association
Facebook: SARA – South African Reward Association

At the recently held 2020 Reward Awards ceremony hosted by the South African Reward Association (SARA), FNB won the Reward Project of the Year award while ABSA won the Remuneration Report award.

Yolanda Sedlmaier won the prestigious President’s Award.

The annual rewards celebrate the companies and professionals who design total reward solutions that attract, retain, motivate, and engage employees in a way that makes a difference to their organisations.

Reward Project Award
The 2020 SARA Reward Project award recognised the team from FNB that developed an Annual Salary Review (ASR) conversation guide for managers on the FNB App.

Research from Gartner (Corporate Leadership Council) shows that 70% of employees want information about reward from their managers, and that communication by managers is three times more likely to positively impact loyalty to both the manager and the organisation than if it were to come from HR.  The ASR conversation guide for managers is built into a section of the FNB Banking App that is only visible to employees, and offers an innovative way to provide personalised, contextual support for managers to have effective reward conversations.

In an environment where the majority of the workforce is working off-campus/off-site, the ASR Guide has been essential to provide managers with as much support as possible through the annual salary review process. ASR has enabled virtual management of the annual increase process, and resulted in an increase of 100% in active App users.
The other placed nominees of the 2020 SARA Reward Project of the Year award were Anglo Platinum in second place for their Team+ Performance Management and Reward project, and Standard Bank in third place for their COVID-19 Employee Support and Relief project.

Remuneration Report Award
The winner of the 2020 SARA Remuneration Report of the Year award is ABSA. Goldfields received 2nd Place and Vodacom received 3rd place for their submissions.

This award recognises organisations for the alignment of their remuneration reporting and disclosure, against the key principles of the King IVTM governance guidelines which exemplify fair, responsible and transparent policy and practice.  Submissions were evaluated by a panel of independent and expert judges across all spheres of stakeholders.

President’s Award
A special President's Award that honours outstanding achievement in the field of total reward was awarded to Yolanda Sedlmaier (Chartered Reward Specialist).

Yolanda has been involved in SARA’s Internship Programme since its inception in 2006, and she has been the Chair of the programme since 2010. Over the past 14 years, the programme has delivered an impressive 55 new total reward professionals into the industry through the active involvement of the committee and superb support from Sponsor and Host companies. Yolanda has worked tirelessly with her team of passionate and dedicated volunteers to enhance and improve the programme, on top of her demanding roles at Deloitte and more recently Mercer.

Yolanda has been described as a selfless leader who is passionate about talent development and thrives on seeing young graduates of the programme go on to lead successful, fulfilling careers. Her no-nonsense style, combined with her love and passion for mentoring graduates, has made her a highly respected total reward professional and deserving recipient of the 2020 award.

ENDS

MEDIA CONTACT: Rosa-Mari Le Roux, 060 995 6277, [email protected], www.atthatpoint.co.za  

For more information on SARA please visit:
Website: www.sara.co.za  
Twitter: @SA_reward
LinkedIn: South African Reward Association
Facebook: SARA – South African Reward Association