Abstract

Systematically evaluating reward strategies, programmes and policies is important because rewards often represent the largest cost of doing business and therefore can have serious negative repercussions if these rewards do not attract, retain and motivate that talent required to operate competitively. A framework for effectively evaluating reward programmes is proposed which includes: (1) employee perceptions, understanding and behaviour; (2) financial and operational impact (e.g., benchmarking, cost, ROI); (3) administrative efficiency and effectiveness; and (4) social responsibility and sustainability consideration. Each perspective provides important information about the effect rewards have on important employer stakeholders.