How do you balance local and global factors in reward decisions?

1 Global reward principles

One of the first steps in developing a global reward strategy is to define your global reward principles. These are the overarching guidelines that reflect your organization's values, goals, and culture, and that apply to all your employees regardless of location. For example, your global reward principles might include fairness, transparency, performance-based, market-aligned, and flexible. Having clear and consistent global reward principles can help you communicate your reward philosophy, align your reward practices, and foster a sense of belonging among your employees.

2 Local reward practices

While having global reward principles is important, you also need to adapt your reward practices to the local context. This means taking into account the legal and regulatory requirements, the market conditions and benchmarks, the cultural norms and preferences, and the employee feedback and engagement in each country or region. For example, you might need to adjust your pay structures, benefits packages, recognition programs, and incentive schemes to suit the local needs and expectations. By doing so, you can ensure that your reward practices are relevant, competitive, and compliant in each market.

3 Global reward governance

Another key aspect of balancing local and global factors in reward decisions is to establish a global reward governance structure. This is the framework that defines the roles and responsibilities, the decision-making processes, and the reporting and monitoring mechanisms for your reward strategy. For example, you might have a global reward team that sets the global reward principles and policies, a regional reward team that adapts and implements the reward practices, and a local reward team that administers and communicates the reward programs. Having a clear and effective global reward governance structure can help you coordinate your reward activities, ensure consistency and alignment, and manage risks and compliance.

5 Global reward communication

The final element of balancing local and global factors in reward decisions is to communicate your reward strategy effectively. You need to have a comprehensive and consistent reward communication plan that can inform and engage your employees across different locations and channels. For example, you might use a combination of global and local communication methods, such as webinars, newsletters, intranet, emails, and face-to-face meetings. You might also use a variety of communication formats, such as videos, infographics, stories, and testimonials. You might also tailor your communication messages and tone to suit the cultural and linguistic differences among your employees. Having a clear and compelling reward communication plan can help you educate your employees about your reward philosophy and practices, increase their reward awareness and appreciation, and boost their loyalty and performance.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?