A high growth private industrial company in Australia, known for its premium customer service and support, has experienced significant growth over the past six years. To ensure continued success, the company sought to review and enhance its reward and remuneration approach. They partnered with The Reward Practice (TRP) to achieve this goal.
Challenges
The company faced several challenges in its existing reward strategy:
- Recruitment difficulties, particularly in the sales area.
- A perceived worsening of company culture, with a sense of fatigue among employees.
- Lack of success planning and communication of pay.
- The need to expand market share while maintaining excellent customer relationships.
Our Approach
TRP conducted a comprehensive review of the company’s reward strategy, engaging with key stakeholders through a series of workshops and consultations. The review focused on several key areas:
- Total Reward Strategy: Developing a holistic reward strategy that aligns with the company’s business value drivers and cultural outcomes.
- Stakeholder Engagement: Conducting interviews with key stakeholders, including the Managing Director, Sales Director, CFO, COO, and other senior managers.
- Reward Preference Survey: Conducting a reward preference survey across the entire workforce to gather insights on employee preferences and priorities.
- Reward Workshop: Facilitating workshops to discuss findings, test potential directions for change, and confirm next steps.
Directions for Change
Based on the findings from the review and the reward preference survey, TRP proposed several directions for change to enhance the company’s reward strategy:
- Review and adjust employee fixed remuneration (FR) to strengthen alignment with market.
- Implement a structured short-term incentive (STI) program.
- Introduce a long-term incentive (LTI) component.
- Develop a comprehensive benefits strategy/package.
- Strengthen performance and development practices.
- Formalise recognition practices.
- Enhance communication to employees.
Results
The collaboration between TRP and the high growth private industrial company led to several positive outcomes:
- Enhanced Recruitment: The revised reward strategy helped attract top talent, particularly in the sales area.
- Improved Company Culture: The new approach addressed the sense of fatigue among employees, fostering a more positive and engaging work environment.
- Clear Communication: Improved communication of pay and reward practices, ensuring transparency and understanding among employees.
- Sustained Growth: The company continued to expand its market share while maintaining strong customer relationships.
Conclusion
Through its partnership with TRP, the company successfully transformed its reward strategy, aligning it with the company’s strategic goals and enhancing employee engagement and performance. This client story demonstrates the importance of a well-designed reward strategy in driving organisational success.