1. Start with Inspiration

First: dive into the world of reward strategies. Listen to podcasts, read blogs, find out how other companies approach it. That way you get an immediate feel for what a reward philosophy really means. Getting inspiration is the first step to success.

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2. Check your business and talent strategy

Where is your company going? What does the company stand for? What do you want to project as a company? Are you growing nationally or internationally? And what people do you want to attract to achieve that growth? Think about this carefully. Your reward strategy must fit the goals, restrictions, culture of the company and the expectations of your future talent.

At Deep, community is key, and you can literally taste it. Every day, two enthusiastic chefs prepare a fresh, hot lunch for the entire building. This initiative, started by the founder, strengthens the sense of community and creates a daily moment where colleagues come together and connect. For Deep, reward is more than financial compensation; it's about a culture where everyone feels part of a close-knit community.

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3. Define reward principles.

Here comes the strategic work: establish the core principles that guide your compensation policy. Think about your salary market position (are you at the top, or just market-based?), whether you work with bonuses, and the balance between fixed pay and fringe benefits. And how is your culture reflected in this? Important to put this down tightly!

Compensations and rewards you can look at:

• Compensation: salary, bonuses, commissions and profit sharing
• Rewards: health care, retirement plans discounted sports tickets wellness programs, development opportunities, and flexible work options such as hybrid working.

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4. Engage your stakeholders

Talk to your leaders, managers, recruiters and most importantly: your employees! Only they can tell you what is really important to them. By gathering input, you ensure that your reward strategy really resonates within the organization.

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5. Develop your strategy and test it!

Now it becomes concrete! Translate your philosophy into a practical strategy. Set salary scales, come up with a bonus structure, and add the right benefits. Run through everything again with various stakeholders - from the executive team to managers - and get feedback. Adjust where necessary!

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6. Make it transparent and set it in motion

A good compensation strategy is clear and understandable to everyone in the organization. By being transparent, you build trust. Therefore, make your policy visible in communications, onboarding and in updates. Make sure everyone knows how rewards are determined and why.

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7. Evaluate regularly and stay flexible

The world changes, as does your company and employees. That's why it's smart to evaluate your strategy annually. Is everything still correct? Have the goals changed? Does the strategy still fit the current market and what your employees expect? Keep it alive and current - that's the key to continued success!

More and more clients are offering creative rewards that go beyond standard benefits. Think of extra days off, a flower subscription or a discount on a shared car for private use. Personalized gifts for life events, such as a stroller for new parents, and noise-cancelling headphones for optimal concentration are also popular options. These personal appreciations align well with the need to support employees both in their work and private lives.

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An additional checklist for your new compensation and reward strategy!

Compensation and reward strategies work so well because they fill in Maslow's hierarchy of needs at different levels. So check that you are going to fill all these needs for your employees with your new strategy!

• Physiological needs: a fair salary ensures that employees can meet basic needs such as food, shelter and health care.
• Security: benefits such as pension plans and health insurance offer employees a sense of security and stability.
• Social connectedness: team-building programs, hybrid work options and social events strengthen the bonds between employees.
• Appreciation: recognition in the form of bonuses, promotions and development opportunities contributes to the need for appreciation and respect.
• Self-actualization: training opportunities and challenging projects help employees reach their full potential and provide room for growth.

This is how you build a reward strategy that stands as a house and fits the ambitions of your organization. Go for it and create a culture where employees not only work, but thrive!

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🧑‍💻 VIE Tech Tool Tip

Ravio: Compare salaries and rewards with the market in real time. Make smart choices for fair and competitive compensation!