vi
Defining strategic reward
92
Making the case for a strategic approach to reward management
93
Reward Philosophy
94
Guiding principles
95
Strategic extent of reward management
96
Defining reward strategy
104
Why should organisations develop and implement a reward strategy
105
What need to be considered when developing a reward strategy
106
The impact of reward philosophy and guiding principles on reward
109
strategy development
The importance of a 360-degree alignment
110
Theory v execution
113
Reward strategy formulation flow
114
Section IV - Reward risk management
Underpinning concepts
118
The impact of the contextual factor
120
The different forms of reward risks
122
Risk and Reward Risk Management
125
Proactive and structured approach to reward risks
132
Attaining the aim
135
Section V - Financial Reward
Components of financial reward
138
Fixed rewards
139
Components of fixed reward
140
Basic salary
142
Allowances and supplements
143
Preservation pay
150
Variable reward
151
Components of variable reward
151
Work-related variable rewards
153
Performance-related variable reward
154
vii
Section VI - Non-financial Reward
Meaning and composition of non-financial reward
157
Intrinsic non-financial rewards
160
Extrinsic non-financial rewards
164
Section VII - Para-financial reward
Defining para-financial rewards
169
Classification of para-financial rewards
172
Section VIII - Reward and recognition
Reward and recognition
174
Section IX - Getting ready for designing and developing
a reward system
The importance of an equitable and fair approach to reward
181
management
What must be known before starting
185
The relevance of the influence exerted by the contextual factor
186