Next: Talent management
Maximising potential through talent identification, engagement and planning
Specialist knowledge
Reward
Creating remuneration and benefits approaches aligned to current and future organisation needs and market conditions
Reward is about designing and implementing strategies that ensure workers are rewarded in line with the organisational context and culture, relative to the external market environment.
It requires specific knowledge in a range of specialist areas to be able to create and shape total reward packages. This may include:
- Executive reward
- International reward
- Pay and benefits modelling.
Reward specialists will need a deep understanding different approaches to reward and benefits packages, and how to ensure that approaches are in line with relevant legislation, as well as the links to organisation and individual performance. You’ll also need to know practical elements such as how to benchmark salaries and determine pay based on external market factors such as scarce skills.
'Reward is increasingly vocal; it sends clear messages about what organisations value, what they choose to reward, and not reward, and how this reflects the culture and goals. Reward gets to the heart of the matter, including what employees care about, such as being valued and their career progression, as well as the usual pay and benefits. A few clicks away and potential hires and existing employees can share their experience, which is critical when attracting and engaging the best people in a global marketplace.'
Sylvia Doyle, Director, Reward First® People Consulting
Reward standards
Each standard progresses through four levels of impact. Which level do you most embody in your day-to-day work?
Foundation level
At this level you'll understand:
- Your organisation’s approaches to reward
- What benchmarking and salary / pay surveys are
- What executive remuneration is (remuneration for the most senior managers, board directors)
- International reward approaches (eg tax, legal, works councils, cultural drivers)
- What benefits are available in your organisation
- The links between reward and performance in your organisation
- Reward legislation relevant to your role
- Reward reporting relevant to your role
- N/A
Associate level
At this level you'll understand:
- Your organisation’s reward packages and approaches, and how to administer them
- How to create benchmarking data, working with salary / pay survey providers
- The different elements of executive remuneration
- Reward models for different types of international moves (such as expat, secondment, local, local plus, relocation or spot bonuses)
- Different types of benefits and the merits of each (such as pensions and healthcare)
- How people and organisation performance can impact the approach to reward
- The legislation that impacts reward practice (disclosure, tax, work permits, tax, pensions and benefits)
- The organisation’s reward reporting requirements (government, legislative, annual reports, shareholder, voluntary reporting)
- The role of the Remuneration Committee (if applicable in your region)
Chartered Member level
At this level you'll understand:
- How to design reward approaches to attract, motivate and retain workers
- How to quality check survey and benchmarking methodologies, and assess the factors determining reward (eg scarce skills)
- How to design individual executive remuneration packages and create new executive reward approaches
- How to apply factors that impact international remuneration (eg tax, legal, works councils, cultural drivers, mobility payments) to reward approaches
- A range of approaches to benefits and how to align benefits to create a total reward offering which is risk assured
- How business performance impacts and informs approaches to reward design
- How to design reward approaches that protect the organisation from litigation
- How to produce reward reports, including narrative and alignment to organisation strategy
- The responsibilities of the Remuneration Committee and the reporting requirements (if applicable to your region)
Chartered Fellow level
At this level you'll understand:
- How to create a reward strategy which attracts, motivates and retains workers
- How to draw insights and intelligence about the external reward environment, including competitor reward
- How to create bespoke executive packages and how to design approaches to executive reward
- How to assess the organisation value of international reward approaches, and their impact on talent retention
- How benefits support the wider people agenda and protect the future financial security of the organisation
- How business performance impacts and informs approaches to reward strategy
- How to protect and insure the organisation from legislative changes which impact financially
- How to produce reward reports, including narrative and alignment to organisation strategy
- How to protect the reputation of the Remuneration Committee with external parties, such as investors, advisory bodies (if applicable to your region)
Resources to guide your work, career planning and development, available on the CIPD's main site.
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