New Zealand
Performance and Reward Consulting

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Performance and Reward Consulting

Each year, companies in New Zealand spend hundreds of millions on pay and benefits. Usually, it is an employer’s largest expense; unfortunately it is also one of the most poorly managed. A recent Aon Hewitt study found that 67% of employers do not measure employee values and preferences for total rewards, yet 88% of them rate optimising total rewards as absolutely critical, very important or important. Our research also shows that employees place personal value on, and are motivated by, a broad range of factors in the work environment, not just their pay.

  • Aon Hewitt works with clients to develop comprehensive and integrated total rewards programs covering remuneration, incentives, insured benefits (e.g. salary continuance, health, travel) and other rewards that effectively align all these elements with business and employee needs.
  • To do this, companies need to have a good understanding of what their employees value and what drives their engagement. The strategy can then balance the interests of the organisation and the needs of employees to maximise return on investment.
  • Aon Hewitt takes a four-step approach when working with clients to formulate a total rewards strategy.

1. Understand the structure, culture and broader company and HR strategies

  • A clear and comprehensive understanding of the existing situation is a crucial starting point but, from our experience, too often does not exist. This is at least partly because responsibility for the different elements of the rewards programs often sit with different managers. In addition, the complexity of insured benefits means that few people other than the responsible manager well understand what is provided.
  • Each organisation’s culture, structure, HR function, employer needs, employee preferences, budgetary concerns and readiness for change will be unique and needs to be fully understood. Aon Hewitt will build a clear picture by collating and analysing relevant internal documents including employee engagement survey results, insured benefit contracts, attrition rates and demographic data.

2. Facilitate total rewards strategy workshops

  • Aon Hewitt will facilitate half-day workshop(s) with key stakeholders to stimulate discussion on key reward and recognition processes, systems and benefit usage across the company and to gain stakeholder buy-in.
  • We will present some broad market statistics so that key stakeholders and a sample of employees can gain a better understanding of the current state of their total rewards framework and begin to help shape the desired future state.

3. Design and develop a total rewards solution

  • Our design process starts with gaining an understanding of the corporate mission, vision and business strategy. The HR philosophy should flow from this and serves as a guide for the design of all HR programs. Aon Hewitt will then create a total rewards strategy that aligns with the HR philosophy, with rewards that support business objectives and insured benefits that optimise value and effectively meet employees’ needs.

4. Communicate with employees

  • Once a total rewards strategy is articulated and the detailed rewards and benefits programs developed it must be effectively communicated to employees. Aon Hewitt will help guide, structure and even roll-out your company communication strategy if required.
  • Communication from direct managers is three times more likely to affect a positive result in employee performance than communication from the HR function. Our research shows that over 90% of Aon Hewitt Best Employers have managers capable of explaining rewards to employees. In other organisations, less than half report that their managers have the capability to explain rewards.
  • Aon Hewitt relies on its fact-based methodology to help clients design, develop and deliver effective total rewards programs that establish a direct connection between the organisation’s goals and objectives and employees’ focus and actions.

Aon Hewitt also offers the following in Reward Consulting:

  • Remuneration Reports / Survey Data Solutions
  • Broad-Based Compensation
  • Executive Compensation

For further information on these services click on the link above or contact or

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