Reward strategy and todays business climate Essay

Reward strategy and todays business climate - Essay Example There are many types of reward strategies, which are completely different based on the unique environment in which the company operates. For instance, if the organisation has found that previous reward efforts such as the distribution of a company vehicle had found significant success in motivating senior-level executive performance, this would be something in future reward strategies which should not be amended. Another company which has found that various training and development packages have promoted better employee performance would want to consider these elements when redesigning a new reward strategy to meet modern business needs in today’s economic climate. There is a significant linkage between cutting-costs and the HR function in today’s businesses, with one part of business leadership attempting to retain talented workers by providing them with better reward compensation and the other part to ensure that long-term business strategy is achieved; especially in terms of finance (Logan, 2009). One recent survey, the Reward Management Survey, conducted by the Chartered Institute of Personnel and Development, found that four out of 10 employers were expected to modify existing bonus and incentive policies in order to recognise business value and reduce costs (Logan).