While executive pay continues to make headlines, companies that use a Total Reward strategy to guide and inform remuneration decisions and practices will soon be awarded top honours by the South African Reward Association (SARA). The awards encourage and promote the development and improvement of total reward practices in South Africa.
 
What is Total Reward and how does it affect me?
“Total Reward includes everything valuable to an employee in relation to his/her employment, including salary, benefits and their experience of their workplace,” says Peet Kruger, executive committee member of SARA, a professional body that promotes and develops the reward profession and practices in South Africa.
 
“Reward professionals ensure that an employer does everything it can to attract, inspire and retain the best possible workforce, while still increasing profits year on year,” says Kruger. “The annual Reward Awards aim to recognise thought leaders that make a noticeable impact to business through reward strategies and practices that deliver business results and support the objectives or the organisation.”
 
Why South African businesses need to take note
Award winners represent the top of the reward game amongst their peers, and represent what each organisation should be aiming for and doing when it comes to adding the necessary value for their organisations to remain competitive and successful in today’s competitive business environment. The criteria allow an organisation to focus on what traits good reward practices should embody. 2015 winners included reward specialists from Standard Bank (Africa) Pty Ltd, MTN, Aveng and Siemens.
 
Entries are invited annually and judged independently by various experts in the reward industry, using criteria relevant to each award.  Entries for the 2016 awards are now open until 17 August, with the winners being announced on 4 November 2016 in Midrand at the SARA Reward Awards Banquet, sponsored by 21st Century, Remuneration Consultants, and Synntech People Solutions.
 
The three award categories recognise reward professionals, teams and organisations that have lead the way in promoting and developing the reward profession.
 
Remuneration Report of the Year Award
This award recognises organisations that demonstrate reporting and disclosure of the company’s remuneration philosophy and its application as stipulated by legislative requirements and corporate governance principles.
 
The judging panel will also consider established commitments to best practice, and how the company’s approach to remuneration supports the business strategy and aligns the interests of its stakeholders.
 
Reward Project of the Year Award
This award recognises an individual or team for the development and implementation of a reward project that uses reward practices and principles in a manner that contributes significantly towards the achievement of the organisation’s objectives or success.
 
President’s Award
This award recognises an individual that has shaped or significantly contributed to the ongoing development of the reward profession, or has been responsible for the design of complex reward interventions or programmes that have set the standard for best practice in South Africa or internationally.
 
For more detailed information on the annual SARA Reward Awards please visit www.sara.co.za

ENDS
 
MEDIA CONTACT: Cathlen Fourie, 082 222 9198, [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 

The way people are rewarded for the work they do needs to change if business is to efficiently navigate the economic downturn. While it may be tempting for business to simply reduce financial reward in response to the economic downturn, a longer-term strategic view that blends financial and non-financial reward is advised.

“People are the biggest asset to any business,” says Peet Kruger, Exco member at the South African Reward Association (SARA). “Business therefore needs to keep in mind that the way they rewards their people has a direct effect on how their goals are achieved. Reward management must link directly to the changing needs of employees as it affects their employment decisions and commitment.”

Reward management takes into account more than just current basic pay; it also looks at what people need to be productive and positive in their work environment during and after the economic downturn. 

Kruger highlights three key areas where organisations should focus on building a reward strategy that rewards people in recognition of them being business’ greatest asset.

Keep employees involved through non-financial rewards
The economic downturn has seen many people remain in jobs purely for the salary, not because they are committed to or passionate about their work. Limited opportunities elsewhere mean that they stay and bide their time, instead of truly delivering on their potential.

“Great reward strategies blend financial and non-financial rewards that attract the right people and involve them in order to achieving the business’ goals,” advises Kruger. “I believe that the differentiating factor going forward will be how we combine the financial and non-financial rewards to create an attractive working environment for employees.”

One example of a non-financial reward could include working from home a couple of days a week, if the position doesn’t require face-to-face interaction with clients, or hands on operational duties on a daily basis. Accountants, writers, administration staff and even executives – these all positions where people could work just efficiently, if not more so, from home. Travel time and fuel cost are saved which in effect also leads to more money in the pocket.

Understand reasons for widening wage gap
“Unique threats faced by South African employers must be taken into account when developing reward strategies,” advises Kruger. “By knowing the threats, a business can address challenges impacting employee satisfaction and engagement in a number of ways.”

“One of the most dominant issues impacting on employee satisfaction is the wage gap,” says Kruger. “While management believes that people need to be rewarded for performance, unions want their members to make a living from salaries.”

This gap is widening as a result of lack of understanding of the emotional driving forces behind opposing views. Only once the focus shifts towards gaining a true understanding of the opposing view could strides be made towards a balanced resolution.

Business must be flexible and adaptable 
An excellent reward strategy is an art, not a science. Business has to be flexible and capable of adapting to changes in legislation, transparency or employee behaviour as there remains a growing disconnect between labour and management. 

Against the backdrop of governance, legislation, wage gaps and equality, organisations need to craft reward strategies that are built on their key objectives, understand the challenges unique to South Africa and will remain flexible and dynamic over the long term.

“None of these things can be resolved overnight as the issue of equal pay when legacy systems are in play means there is no short term fix. There must be a longer term view with long term strategies that address unavoidable issues,” says Kruger.

ENDS
​
MEDIA CONTACT: Cathlen Fourie, 012 644 2833, [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

The organisation is facing challenging times. Budgets must be closely watched, performance measured and results driven. However, the people that make up the lifeblood of the business must still be nurtured and rewarded, given credit and recognition for the work that they do and inspired to loyalty. 

“For a business to thrive it needs the engagement and commitment of its employees,” says Dr Mark Bussin, Exco member of the South African Reward Association (SARA). “This can be found in a well-structured reward strategy.”

These rewards are the financial and non-financial returns given to employees in exchange for their time, talents, efforts and results. Dr Bussin shares seven signs that prove the organisation is doing their job here well.

The reward is comprehensive
Total Rewards describes the strategy of blending money, benefits, work/life, performance and recognition, development and career opportunities into one complete package. This type of solution is far more likely to attract talent alongside motivating and retaining it. 

The goals are clear
A well-designed Total Reward plan provides an integrated approach for reward management, aligns reward practices with the business strategy and adheres to legal, ethical and best practice standards.

Performance targets are met
“If the organisation is meeting fundamental financial performance targets and providing superior total return to shareholders, then you know your reward strategy is working. The total reward strategy underpins the business strategy and supports achievement of the targeted financial returns,” says Dr. Bussin.

Communication is meaningful
An excellent reward strategy is an art, and if the CEO, board, investors and analysts communicate in a meaningful way and the reward system encourages the CEO to align with the shareholders and vice versa, then it is on track to success.

Value is recognised
“A well-implemented solution will see that the board has sufficient understanding of the total reward strategy to know where to look for answers and approach experts,” says Dr. Bussin. “The board uses its resources and taps into the experiences and wisdom of a diverse range of directors. In addition, the board acts cohesively and as a collective, not breaking down into factions. A great reward system encourages team behaviour.”

Wealth creation
Through a well-managed and crafted reward strategy, the CEO and the long term investors are creating substantial levels of wealth. The reward system is focused on the long term sustainability of the organisation and producing superior returns over a long period of time. 

It is effective
An effective reward strategy is based on sound principles and practices, is reliant on the achievement of desired outcomes, is positive and meaningful and impacts behaviour in the right ways. If it works, the talent pipeline will be packed with CEO candidates as the organisation has a reward system that has clear succession planning and there are no surprises.

“A good reward system allows the employee to know well in advance how they are doing and if they will earn, say, a bonus,” concludes Bussin. “It rewards succession planning and penalises job preservation by holding onto information.”

ENDS
​
MEDIA CONTACT: Cathlen Fourie, 012 644 2833, [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