Developing a Reward Estrategy that Delivers Shareholder and Employee Value

Abstract

Reacting to increased scrutiny from shareholders and the general public, many companies have taken pains to align executive compensation with shareholder value. Few of these companies, however, have extended this alignment to encompass the entire workforce as part of an integrated human resource strategy. In an effort to attract and retain needed talent in a very tight labor market, more and more companies are developing compensation and benefits programs geared to what employees want and value. Companies need to think of the dollars they spend on reward systems as investments as opposed to expenses, states the author, and when viewed in this light, the return on the investment equates with value delivered to all stakeholders and becomes the most important measure of an organization's success.