Continuing our posts on Reward Strategy, this is the question that we'd like you to think about.

Knowing whether a reward strategy is working means you have to effectiveness of your strategy over time, using a variety of measures to assess whether the strategy is achieving its intended outcomes. Here are some ways to do this:

Employee satisfaction: One of the most direct ways to assess the effectiveness of your reward strategy is to ask your employees how satisfied they are with their pay and benefits. Employee surveys, focus groups, and interviews can provide valuable feedback on how employees perceive the effectiveness of your reward strategy.  Be brave - you may be surprised at the outcomes. sometimes it genuinely isn't as bad as you think. 

Employee turnover: Employee turnover is an important indicator of whether the reward strategy is working. If you're losing valuable employees to competitors or to other industries, it may be a sign that your reward strategy is not competitive or attractive enough. 

Recruitment success:  This is another good measure of your success. If you can attract high-quality candidates for open positions, it is a sign that the reward strategy is effective in attracting talent.

Performance metrics: Performance metrics, such as sales revenue, productivity, and customer satisfaction, can provide insights into whether the reward strategy is motivating and engaging employees to perform at a high level.  There are 100's of metrics, but things like tenure, churn rate, advocacy score, satisfaction index, absenteeism are the 5 we most frequently see utilised.

Financial performance: Financial performance, such as revenue growth, profitability, and shareholder returns, can also provide insights into the effectiveness of your reward strategy. If you are achieving strong financial results, alongside high employee satisfaction, good recruitment success this could be a sign that the reward strategy is helping to drive performance and results.

By regularly evaluating the effectiveness of your reward strategy using some well thought out measures, you can assess whether your strategy is achieving its intended outcomes and make adjustments as needed to ensure that it remains effective over time.

Don't be afraid to measure your strategy, use metrics and demonstrate your successes to your business.