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Hybrid working could change employee rewards

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Traditional employee reward structures, such as salary bands, could be a thing of the past due to hybrid working, according to accountancy firm PwC.

A more agile way of working could overhaul performance management as businesses reportedly plan on focusing on more customised reward packages. 

PwC’s new The Future of Reward report has found that due to hybrid working during the pandemic, 59% of businesses made changes to their employee reward programmes in 2020, including reducing the number of employee assessments and increasing frequency of check ins. 

A further 38% of respondents said that their business is currently redefining how employee evaluations will take place in the future.


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A shift to hybrid work could also mean an uptake in regional pay, pay dependent on where a person lives, due to changes in travel and commuting costs. Although half (50%) of businesses said that reviewing regional pay was not on the agenda, 28% said that they had already started the process.

Alastair Woods, head of reward and performance at PwC, said that virtual working has resulted in many employers starting to consider the traditional pay models and accommodating individuals who may move from high-cost locations.

Speaking to HR magazine, Woods said that people teams must think different about reward when it comes with hybrid work.

He said: "This will require a new mindset in HR to help the business adapt to new ways of working. 

“It means that centres of expertise in HR, like reward, learning and recruitment, will need to work together through the lenses of employee experience and workforce strategy but also work with other business areas including property, finance, technology.”

Woods said that the UK recovery of COVID-19 job losses and business closures, will be a people-led and that HR has to be front and centre.