The concept of this report was borne out of client conversations that took place during the start COVID-19. Many business leaders were focussing internally, evaluating the expected impact of the pandemic and, for many, rethinking their future strategies. A key part of this debate, and high on the people agenda is reward, both monetary and non-monetary.
We had conversations with businesses whose incentive plans and bonus schemes were underwater and required a fresh start, as well as with those that had managed to achieve strong growth despite these challenges and had accelerated to returns above expectations. The common question posed across the board was: how do we make best use of our reward strategy to get the best outcome we are looking for?
So that we could better answer the question, we commissioned The Behavioural Insights Team (BIT) to conduct an evidence review of the literature related to the structure and design of pay and reward, as well as non-financial rewards. This resulted in a hugely in-depth and interesting review into a wide range of aspects of reward, many of which we would assert have not been fully considered by employers who have had a colossal amount to tackle over the past two years. We also included our framework of recommendations to take away and consider how they may fit your business.