Remuneration incentive programs and work choices: the opportunity

Work Choices opens up a whole area of opportunity for employers to strategically develop and implement a remuneration incentive program in order to add to their arsenal of competitive advantages. Work Choices has generated some considerable negative perception in the Australian workforce. Correspondingly there is now a significant opportunity to flip this negativity 180-degrees into something very attractive and motivating to existing and prospective employees.

For the employee, the business unit, and the company as a whole to gain optimum benefit from a remuneration incentive program, there must be an intimate alignment of the underlying value drivers for the company with the incentive-driven behaviours of employees. The key to remuneration incentive programs is that wages can be streamlined, whilst directly rewarding employees for value creating behaviours. Increased remuneration is directed to employees who are delivering value to their organisation.

It must be recognised that the opportunity for improving take home pay for employees is not the only factor under consideration for many Australians; nor should it be for a company advocating the remuneration incentive program. Balance is a key concept. For employees, considerations such as professional development opportunities, working conditions, and flexible working hours may hold significant weighting.

The competitive advantage of a remuneration incentive program that is intricately aligned with the strategy, growth, and vision of the company will become exponentially important in the near future. Such an advantage will be essential, not only for improving employee performance and thus company profitability, but most importantly to compete in the market place for the recruitment and retention of quality employees to drive the company forward.

DC Strategy is the region’s leading specialist consulting and legal firm. Our specialist teams in Strategy, Franchising, International and Legal have developed the networks and brands of many of the region’s most successful businesses. Contact DC Strategy at growth@dcstrategy.com