This principle can still be seen in how organizations shape their reward systems. Whether it's about fixed salaries, bonuses, profit sharing, or promotions: the way you reward employees has a direct influence on their motivation, their priorities, and above all, their daily behavior.

A well-thought-out reward strategy does more than just encourage individual achievements. It reinforces exactly that behavior which strengthens the Cultural DNA of your organization. Conversely: a reward policy that does not match the desired culture can seriously hinder the development of that culture.

It is up to leadership to make clear which behavior is considered desirable: where do we want to head, and what behavior fits that vision? At the same time, there must be a clear and fair picture of the performance of individual team members. Because leadership and performance management are directly connected here.

And that's where the link to reward lies: team members in leadership positions assess performance, and these assessments form the basis for how and why someone is rewarded.

If that clarity is missing, or your reward policy does not connect to your culture, you risk your team being steered in exactly the direction you don't want—and you undermine the credibility of your leadership.

A well-thought-out and clearly communicated reward strategy offers more than just structure in employment conditions. It creates direction, motivates behavior, and makes a concrete contribution to culture development. These are the main advantages:

• Clarity & motivation: Clarity about expectations and a transparent link between performance and reward ensure involvement, motivation, and the retention of valuable talent.
• The right incentives: By rewarding what truly contributes to the culture and direction of the organization, you strengthen the behavior that moves you forward.
• A clear talent proposition: An understandable and explainable reward policy that seamlessly fits the organization's identity strengthens your Employee Value Proposition and attracts the right talent.
• Grip: A strategic reward policy ensures manageable personnel costs – both financial and secondary – in line with your growth objectives.

Still, in many organizations, the reward policy evolves more organically than strategically. It grows with the organization but often lags behind what the current and future situation actually requires. As a result, there is a lack of cohesion between business strategy, the desired Cultural DNA, and the reward policy.

And breaking through existing agreements and expectations? That's easier said than done.
Still, it is possible to design a reward strategy that fully supports the desired company culture. It starts with one crucial question: what is the Cultural DNA and what behavior do we need to be successful?
From that clear definition, you work step by step towards a reward strategy that reinforces that behavior: thus aligning culture, strategy, and reward.

For most organizations, the fixed salary still forms the largest part of the reward. But in fact, the ratio between fixed and variable pay is a fundamental cultural choice.

Organizations that mainly focus on fixed salary often build a culture of stability, collaboration, and long-term commitment. However, aspects such as innovation, ambition, or result-orientation may receive less emphasis as a result.

Variable reward forms, on the other hand, can boost exactly that behavior—if well-designed. They help create focus, increase engagement with company goals, and steer strategic themes. At the same time, there's a real risk: if applied incorrectly, variable rewards can hinder collaboration, encourage short-term thinking, or put intrinsic motivation under pressure.

Besides choosing the ratio between fixed and variable, employers have plenty of flavors to choose from or combine in arranging the fixed salary. Each approach steers behavior—and thus culture—in a different way.

The right approach is not one size fits all. The choice depends on your cultural values and strategic ambitions. Many organizations combine different models to find a balance between:

• Structure (via job evaluation)
• Development (via competency-based pay)
• Performance orientation (via merit tables)
• Market competition (via market-based pay)

Thus, organizations that find job evaluation too rigid can choose combinations with a merit table—to make room for individual achievements within objective frameworks. Broad pay bands with competency-based pay stimulate development without employees constantly needing promotion. And companies that focus mainly on competitive strength often opt for a market-driven approach.

Secondary employment benefits, such as pension schemes, learning opportunities, extra vacation days, and 'perks' around mobility, health, and flexibility, do more than just support well-being. If well chosen, they make your cultural values visible and tangible every day.

They form powerful behavioral incentives that encourage the right behavior and reinforce what you as an organization find important. Depending on your cultural archetype, you use them as a strategic steering tool:

By deploying them strategically, you make clear what you as an organization find important and encourage behavior that directly aligns with that.

The third main component of a reward strategy is the variable financial reward. Unlike fixed salary or secondary benefits, this element is optional—but for organizations that use it, it usually has a major influence on employee behavior and the broader Cultural DNA.

Variable reward drives performance, ownership, and focus. But how you use it determines which behavior you actually strengthen. Broadly, there are three main forms, each with its own effect on motivation, collaboration, and long-term vision:

It influences how people behave, where they set their focus, and how they relate to each other and the organization. That's why it's crucial that this form of reward aligns with your strategic direction and your desired Cultural DNA.

A well-designed reward strategy is not an end point, but a foundation. It forms the behavioral compass of your organization—and therefore a direct building block for your Cultural DNA.
Translating your mission and culture into a suitable combination of fixed salary, secondary benefits, and variable rewards always requires customization. But that's exactly why it's valuable to understand how different cultural archetypes in practice translate into different reward emphases.

Because if you know what behavior you want to strengthen, it also becomes clear how to reward.