(WorldatWork Journal, 3rd Quarter 2007)

The study examines what compensation professionals really think makes their reward programs successful. Open-ended questions were asked of 461 total rewards practitioners. The questions sought to determine: (1) the most important characteristic or attribute making an organization's rewards effective and (2) the key thing(s) that the practitioners believed the organization must do to improve the reward system. The results reinforced the importance of reward communications and the importance of alignment of reward programs with business goals, strategies, results and objectives. The study stressed the criticality of linking pay and performance as well as the role that nonfinancial rewards play in effective reward programs. The study also indicates that weak support at lower-management levels diminishes program effectiveness.