Evidence-Based Reward Management : Creating Measurable Business Impact from Your Pay and Reward Practices

by Armstrong, Michael; Brown, Duncan; Reilly, Peter

• ISBN13: 9780749456566
• ISBN10: 0749456566
• Format: Hardcover
• Copyright: 2010-08-28
• Publisher: Kogan Page Ltd

Summary

This book presents an analysis of the current failure of organizations to assess the effectiveness of pay and reward practices. It considers the reasons for this and outlines the damaging consequences of it. By examining recent developments in human capital information and measurement, it looks at how HR can construct effective reward for improved performance, both for the individual and the organization. It presents the tools and techniques which can be applied to practice evidence-based reward management, including a 4-step model which sets strategic goals, reviews current policies, looks at how to make improvements, and explains how to monitor and adapt on an ongoing basis.

Author Biography

Michael Armstrong is a former Chief Examiner of the Chartered Institute of Personnel and Development, joint managing partner of e-reward and an independent management consultant.

 

Duncan Brown is a former director in Human Resource Services at PricewaterhouseCoopers.  He is currently director of HR Business Development at the Institute of Employment Studies.

 

Peter Reilly is director of HR Research and Consultancy at the Institute of Employment Studies.

Table of Contents

Acknowledgements	p. ix
Praise for Evidence-Based Reward Management	p. xi
Introduction	p. 1
The concept of evidence-based management	p. 12
Introduction	p. 12
Evidence-based management defined	p. 13
Approaches to evidence-based management	p. 14
Evidence-based management and research	p. 15
Evidence-based management and benchmarking	p. 18
The myth of best practice	p. 19
Best fit	p. 21
Evaluation of HR management practices	p. 24
Evaluation through measurement	p. 25
Quantitative evaluation	p. 26
Qualitative evaluation	p. 29
Chapter summary	p. 30
The concept of evidence-based reward management	p. 33
Introduction	p. 33
The meaning of evidence-based reward management	p. 34
The meaning of integrated reward management	p. 34
The ethical dimension	p. 34
The role of reward strategy	p. 35
High-performance working	p. 36
Engagement	p. 39
Attraction and retention of talent	p. 44
Evidence-based reward in practice	p. 45
Chapter summary	p. 46
The reality of evidence-based reward management	p. 50
Introduction	p. 50
What is or is not happening?	p. 51
Why there is little interest in evidence-based reward management	p. 55
Why is evidence-based reward management important?	p. 58
What evidence-based reward management aims to achieve	p. 59
Chapter summary	p. 60
Case study: Kent County Council: effectiveness in building a great place to work	p. 60
The impact of evidence-based HR and reward management	p. 70
Introduction	p. 70
Measuring the impact of human resource management	p. 71
Measuring the impact of reward	p. 76
Chapter summary	p. 79
Case study: McDonald's restaurants: aligning reward strategy to business objectives through employee engagement	p. 80
The process of evidence-based reward management	p. 92
Introduction	p. 92
The context: reward practices under scrutiny	p. 93
The challenges: the questions to answer	p. 94
Assessing reward effectiveness	p. 96
The components of evidence-based reward management	p. 98
Defining reward goals and success criteria	p. 101
Setting success criteria and moving on to assess them	p. 115
Chapter summary	p. 117
Case study: an analytical but values-driven approach to managing reward and incentive arrangements at Standard Chartered Bank	p. 118
Reviewing reward	p. 129
Introduction	p. 129
The process of reward review	p. 131
Approaches to reward review	p. 132
Components of a reward review	p. 145
Internal research	p. 149
External research	p. 153
Chapter summary	p. 158
Case study: DSG International plc: reward effectiveness in driving a business turnaround	p. 158
Measuring and evaluating reward	p. 169
Introduction	p. 169
Measuring reward	p. 170
Evaluating reward	p. 181
Chapter summary	p. 188
Case study: evidence-based recruitment and reward at the NSPCC	p. 189
Developing and implementing reward	p. 198
Introduction	p. 198
Analysing findings and agreeing improvements	p. 198
Developing new and improved rewards	p. 202
Developing with implementation in mind	p. 215
Implementing, operating and reviewing more effective rewards	p. 217
Chapter summary	p. 224
Case study: KPMG: delivering effectiveness through performance-related and total rewards	p. 225
Conclusions on evidence-based reward management	p. 237
Introduction	p. 237
The six components of evidence-based reward	p. 237
Criteria for assessing reward practices	p. 239
Views of practitioners	p. 241
A final word	p. 243
Index	p. 245
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