Ensure your reward strategy remains globally equitable in a cost of living crisis?
With the cost of living crisis impacting nations differently across the world, how do you continue to ensure your reward strategy remains globally equitable?
A points-based reward solution is an effective way to give employees ability to redeem rewards that are meaningful and motivational to them. Online reward selections provide choice and can offer an efficient and equitable way to reach global employees with a consistent approach.
The case for equity
There are a number of factors that support the argument for ensuring your reward strategy as a component of the employee experience is equitable across your organisation including;
- Improved employee motivation
- Increased employee retention
- Simplified and streamlined administration
- Enhanced business outcomes
Equity and the cost-of-living crisis
However, with economists increasingly predicting a global recession within months, the cost-of-living crisis continues to sit high on the agenda for employees and employers alike and can have a direct impact on your reward strategy. With the challenge varying in degrees of severity around the world, and more organisations adopting a global approach to their reward strategy, what could you do to ensure your approach remains globally consistent whilst also considerate in light of local economic challenges in areas like Turkey, Latin America and Indonesia?
What could you do to ensure your approach remains globally consistent whilst also considerate in light of local economic challenges?
Points Parity
A points-based rewards system provides the opportunity to create global parity, ensuring any programme it is aligned with represents a fair and equitable reward in all the countries that your organisation operates within. The principle of points parity looks at both earnings and purchasing power in each region to recommend country-based points values making fair rewards accessible regardless of the economic climate of the participant.
Got a points-based system in place? Put a review of your points values on the agenda to see if there is opportunity to adjust, considering factors like inflation, supply chain costs or any other localised nuances affecting the cost of living in some countries.
Global Currencies
Similar to points parity, another approach is to seek reward providers with supplier networks that trade in multiple stable global currencies. This approach can help to iron out creases in price fluctuations across multiple regions, ensuring reward pricing is more equitable across your reward offer.
Leverage local experts
The most effective global reward providers use local experts. Partners who not only understand their customers, but are monitoring, predicting, and mitigating unusual local conditions, often ahead of the impact being experienced by your employees. In cases where specific countries are suffering, look to increase or pivot redemption options in the short term from neighbouring regional suppliers where the crisis is not hitting as hard, or swapping out tricky items for those which can be delivered digitally.
This approach ensures your reward offer remains extensive for your employees without hyperinflation for example, affecting purchase power.
Click here to find out more about BI WORLDWIDE’S
Global Rewards Marketplace
The best way to get started is to get in touch!
Speak to a member of our expert team to learn how our solutions can support your rewards strategy.