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Additional info for Reward Management: A Handbook of Remuneration Strategy and Practice, Fifth Edition
On the basis of their longitudinal research in 12 companies Purcell et al8 concluded that: What seems to be happening is that successful firms are able to meet people’s needs both for a good job and to work ‘in a great place’. They create good work and a conducive working environment. In this way they become an ‘employer of choice’. People will want to work there because their individual needs are met – for a good job with prospects linked to training, appraisal and working with a good boss who listens and gives some autonomy but helps with coaching and guidance.
An important part of the ‘respect equation’ is something called ‘employee voice’. ’ Having a voice in the affairs of the firm is rewarding because it recognizes the contribution people can make to the success of the organization or their team. Employees can have a voice as an aspect of the normal working relationships between themselves and their managers and as such it is linked closely to other reward factors discussed here such as recognition, opportunities for achievement and risk sharing. But the organization, through its policies for involvement, can provide motivation and increase commitment and engagement by putting people into situations where their views can be expressed, listened to and acted upon.
But it is also empirical management, which decides how in practice it is going to get there. The foundation of strategic reward management is an understanding of the needs of the organization and its employees and how they can best be satisfied. It is also very much concerned with developing the values of the organization on how people should be rewarded and formulating guiding principles that will ensure that these values are enacted. As described in this chapter, strategic reward management is about the development and implementation of reward strategies and the guiding principles that underpin them.