Human resource management practice I also available by michael armstrong

Advice on reward evaluation

The  following  advice  on  reward  evaluation  was 

given by a senior reward practitioner in one of the 

Armstrong et al (2011) case study companies:

1 

The best starting point before setting any 

targets or measuring anything is to decide  

what the organization wants to achieve.

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Chapter 

27

  The Practice of Reward Management

383

2 

Once this has been decided, you should use  

as much data as you can and benchmark this 

against the market, before deciding where 

the company should be positioned.

3 

Take care when interpreting data such as 

high staff satisfaction scores and other 

perception-related measures – they could 

simply be reflecting generous, rather than 

effective, rewards.

4 

In some cases evaluation is not necessary –  

it is plain to see when certain elements of  

the reward system are working or not.

5 

It is your job to place evidence in context  

and try to interpret what is really happening 

and why.

Some  of  the  reward  evaluation  software  packages 

available, although clever, tend only to use quantita-

tive measures, so they don’t take account of some of 

the  other  factors  that  might  be  at  work.  This  is 

where you come in – to interpret and make sense of 

the grey as well as black and white areas.

FIgure 

27.1

   

A model of the interrelationships between the components of evidence-

based reward management

Set reward

goals

and success

criteria

Measure

Implement

Review

Develop

Evaluate

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