Linking rewards to business strategy

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Linking rewards to business strategy
Keith Nash, HR Director, Europe. Badenoch Clark
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Badenoch Clark - who we are
Market leading recruitment consultancy in
Financial Services Legal Public Sector Finance
to Commerce and industry
700 people in 24 offices around Europe
7th Best company to work for Sunday Times 2006
1st for Training Sunday Times and Recruitment
Industry Awards 2005
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Linking strategy with rewards
Vision and goals
Business strategies
Performance indicators
Reward and recognition
Communication and evaluation
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Business Strategy
Some basic questions What are the key
drivers? Will linking with rewards improve
performance? What parts of the rewards package
are appropriate? Who and what organisation levels
are appropriate?
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Key drivers at BC

• Shareholder value (NYSE listed)
• Quarterly growth headcount and margin
• Culture
• Medium-term - market leadership
• Longer term - European roll-out

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Strategies

• Recruitment, training and retention
• Productivity
• Quality of candidate care
• Process improvements
• Our culture/values
• Market share
• Margin/customer management
• And who needs to make this happen?

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Some examples.

• Revenues Sales, operations
• Margins Business development, finance
• Products/services Marketing, IT
• Productivity HR/training, team leaders
• Culture everyone
• And assess the value of each to the organisation

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Accessing the value.

• Our culture our values
• Provides competitive advantage
• Differentiates us in the market
• Improves cross selling
• Enhances service levels
• Improves productivity and performance
• (current added value estimated at 3m p.a.)

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Balanced scorecard Carefully designed, step by
step

• Decide generic headings (e.g.Customer/Financial/P
  eople/Practices)
• Breakdown measures and KPIs
• Start at the top (CEO, directors, managers, sales
  )
• Try to align where possible (line of sight)
• Weight and value each appropriately
• Design rewards programme

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Example of scorecard
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Specific challenges

• Time consuming never completed
• Keeping it simple and motivational
• Making the rewards worthwhile
• Finding non-financial rewards
• Measuring behaviour change and results

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www.badenochandclark.com