Helping Line Managers Play a Key Role in Reward

Reward professionals will no doubt have the CIPD’s annual Reward Risks Survey at the top of their reading pile this week.

The findings are not revolutionary – the top risks identified are the same as in previous years – but there has been an interesting shift in priorities over the past 12 months. 

The top issue now keeping reward practitioners awake at night is that despite their best efforts, employees still don’t seem to appreciate the total value of their reward packages.  Equally frustrating (and key to this lack of appreciation) is that line managers have a poor understanding of reward and are clearly not getting the message across to their teams. 

Other issues causing concern are that (understandably in the current climate) organisations are unable to offer staff any prospect of a pay rise – and that reward is increasingly not being perceived by those on the receiving end as fair or equitable. 

The shift in the rankings is of course a reflection of the business and economic challenges facing organisations right now.  But dig behind the findings and it’s clear that the role of line managers in reward is an area that needs serious attention.

 The line manager is the ‘glue’ that helps employees connect positively with their reward package.  They are in prime position to not just explain the value of what’s on offer – but to ensure employees feel recognised and appreciated for their efforts. 

This is particularly important in challenging times when everyone is under pressure to do more with less.  Teams are depleted, workloads have increased, morale is low – and there’s not even the prospect of a bonus or salary hike on the distant horizon. 

The problem is that line managers (who are of course hard-pressed themselves) are often simply not equipped with either the information or skills to use reward as a tool to improve performance and employee engagement. 

They need more support and better quality data from their colleagues in HR to help them communicate effectively with their team and ensure the reward that is on offer has maximum motivational impact.

 So how can organisations help line managers make a success of their pivotal role in reward?  The following ideas may help: 

• Provide managers with a small budget that can be used to provide on-the-spot rewards for employees who go the extra mile or demonstrate outstanding performance.

 

•  Encourage managers to organise team events to ensure their people are clear about strategy, direction and priorities.  These don’t have to be high profile or expensive.  Just a simple get together, part business, part social, can do much to foster team spirit and re-energise dispirited employees.

 

• Make sure up-to-date information about individual reward packages, together with benchmarking data, is at manager’s fingertips.  This will ensure they are on the ‘front foot’ when having discussions with employees and can illustrate the true value of what’s on offer.

 

• Hold regular forums where line managers can get together to share experiences and ideas for motivating and rewarding their teams in difficult circumstances.  It’s a great way of providing peer support, sharing best practice and promoting the ethos that ‘we’re all in it together’.

 

• Open the communication channels between line managers and HR.  If managers are fully informed about the challenges and issues faced by the reward team, they will not only deepen their understanding of reward practice, but will also be in a better position to communicate clearly and effectively with employees.

 

• Consider the introduction of an Employee Savings programme, which will give line managers a tool they can use to reward staff on an on-going basis and reinforce messages about the kind of behaviours that are encouraged.

 

These kind of initiatives will help ensure line managers make a real contribution to the overall success of a corporate reward strategy.  A well briefed, well trained line manager will help employees focus on what’s important, feel valued for their efforts  and will increase their teams’ appreciation of the reward that’s on offer.

Are your line managers equipped to support your reward strategy?  We look forward to hearing your views and experiences.