Line Managers & Total Reward Strategy

May 12, 2021 By ascendadmin

May 12, 2021 By ascendadmin

Line Managers & Total Reward Strategy

The CIPD state that total reward:
encompasses all aspects of work that are valued by employees, including elements such as learning and development opportunities and/or an attractive working environment, in addition to the wider pay and benefits package (Taylor and Woodhams 2020).
The total reward strategy developed must be holistic, best-fit, integrative, strategic, people-centered, customized, distinctive, and evolutionary.
Under a total reward approach, all aspects of the work experience are recognized, and prominence is given not only to remuneration but also to non-financial rewards.

Line managers play an important role in implementing the reward strategy in the organization. While some are of the view that line managers must be the deciding factor for rewards this is not a good idea due to several reasons.

  • Some line managers may be more generous than others and may rate their employees higher leading to higher pay increases or benefits.
  • Some may have favorites and they could be given additional increases or benefits. This can erode the psychological contract and lead to disengagement.
  • They may not consider the impact of factors like job evaluation, legal compliance issues, equal pay, anti-discrimination etc while deciding rewards.

The role of line manager typically involves the following-

 

  • Day to day reward- Line managers can use recognition and praise as motivators to encourage superior employee performance and engagement.
  • Knows his team-best- The line manager knows better than anyone about employee performance. His inputs must be taken while deciding reward strategy changes, considering pay increases, etc.
  • Fairness-The line manager must understand what level of increases can be promised. He must understand that a verbal promise is binding else both the manager and the organization loses credibility in the eyes of the employee.
  • Line managers have a crucial role in maintaining fairness, consistency, and transparency across organizations.

HR has the responsibility of ensuring that line managers understand the grading and pay structures in the organization. They must be trained to conduct objective performance appraisals. If line managers are not supported in making effective reward decisions, reward systems and processes will be redundant. No matter how much thought has gone into grade or pay structures, if line managers do not know how they apply in practical ways, there will be no consistency of reward across the organization (Taylor and Woodhams 2020).

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