#160 More than just salary with Motahar Panabad: The future of rewards in companies

This episode of CULTiTALK focuses on the topic of “rewards” – i.e., compensation, recognition, and benefits – and how these factors significantly shape corporate culture. Georg Wolfgang welcomes Motahar Panabad, who originally comes from HR recruiting and now works as Senior Director of Total Rewards at the global logistics group Havi. The conversation takes place in English to capture Motahar’s international perspective.

From the outset, it is clear that for Motahar, rewards are not just a question of money or benefits – they are a strategic tool that can shape a company’s culture. As the conversation progresses, the two delve deeply into this special connection between reward systems, leadership, and corporate culture in practice.

Motahar’s background & introduction to the topic

Motahar begins with a charmingly modest self-introduction. His path led him from recruitment to the rewards sector, although he initially had no specific knowledge of rewards. However, he quickly realized how powerful and culturally influential reward systems really are. For him, rewards are much more than a means of recognition—they are the strategic engine of an organization. Not least, they signal which values and desired behaviors are actually lived and rewarded.

Motahar has gained experience in a wide range of industries (oil & gas, retail, fashion, logistics) and emphasizes that the same truth applies everywhere: the right reward system determines the existence and quality of corporate culture.

The interaction between reward systems and corporate culture

Georg follows this line of thought and agrees: although most managers see rewards as a tool for recognizing performance, they underestimate their profound effect on culture. For Georg, culture is ultimately the interplay of all rules—both formal and informal—that govern behavior, and rewards shape the implicit rules of an organization.

What is particularly interesting is that if an organization wants to encourage risk-taking, innovative behavior, but the reward system continues to reward only traditional, safe performance, a contradiction arises – with a culture clash and frustration as possible consequences.

Motahar sums it up: Culture is the “invisible operating system” of an organization. It determines whether new strategies or innovations can be implemented at all. At the same time, culture is a long process, a “journey” that is shaped not only by rewards, but also by leadership, role modeling, and communication.

Rewards as signposts: What really matters?

Reward systems send signals to employees—consciously or unconsciously—about what really matters. If only individual successes are rewarded, other goals such as collaboration or willingness to innovate are undermined, regardless of what the mission statement says. Conversely, specifically linked rewards strengthen the credibility of official values.

For Motahar, “moments that matter” are also important: what, when, and how rewards are given is crucial—personal, timely, and meaningful recognition has a disproportionate influence on motivation and culture.

Managers: the key to a living culture

Georg steers the conversation toward the everyday life of managers: Many often see rewards as a chore rather than an opportunity to actively shape culture or build emotional loyalty among their employees. They often fail to realize that even a simple “thank you” can have an enormous impact.

Motahar emphasizes that people observe their leaders very closely. It is therefore essential to lead by example and reward desired values and behaviors in a targeted manner. If leadership is only measured and rewarded in the short term based on numbers, this has a domino effect on the entire organization—with a focus on short-term profits and an increased risk that purpose, trust, and cooperation will fall by the wayside.

One thing is clear to both of them: the right combination of financial and cultural incentives at management level is not a nice-to-have, but a must.

The balancing act: hard facts versus soft skills

Georg raises a critical point: in many companies, it is ultimately only the numbers that count, while “soft facts” are ignored. Discussions about supposed target visions often lack a genuine desire for change—they remain mere ambitions, with little commitment to values.

Motahar sees this as a systemic error. Those who focus exclusively on short-term, number-driven success risk alienating their workforce and losing their trust—with negative long-term consequences even for the “hard facts.”

The bridge between ambition (e.g., formulating new values) and actual anchoring in everyday life is the most difficult part of any cultural change. Georg calls for genuine commitment here and suggests considering the reward system when establishing new values.

Practical examples: Incentives and organizational development

Motahar describes how a CEO deliberately initiated a cultural change—always with an eye on the measurability of success and through programs such as Long Term Incentive Plans (LTIP). Motahar emphasizes that the success of such measures does not depend on individual measures, but on constant role modeling and a clear translation of cultural goals into the organization.

The classic idea that people are “rewarded” with leadership positions is critically questioned. In many companies, experts who do not actually want to be or should not be leaders are pushed into management positions – with negative consequences for the team and the culture. Motahar advocates differentiated development paths and a reward system that values both specialist and management careers.

Change of perspective: What do employees want today?

As the conversation continues, Georg takes a closer look at the employee perspective: Have needs changed? Motahar sees less of a “generational clash” and more of a natural development across different stages of life. However, he clearly observes that since Covid, benefits and work-life balance have become significantly more important. Flexible working models, remote work, development opportunities, and an authentic corporate culture are expected. These soft benefits are now also decisive when choosing an employer.

Motahar recommends communicating the entire “total rewards journey”: not just salary and bonuses, but also individual development paths, mentoring, internal flexibility, and the cultural framework. He sees a call for flexible, individualized, and life-stage-appropriate offerings, as needs are constantly changing—regardless of age and generation.

Flexibility, communication, and individualization

In highly dynamic markets, general “reward paths” are no longer sufficient. Flexibility is required: the classic “career ladder” has been replaced by individual development opportunities.

Another important point for Motahar: rewards only work if they are visible and understandable. Communication is therefore key—without explanation, meaning, and embedding in the culture, even the best programs lose their effect and, in the worst case, become mere entitlement (“entitlement culture”).

Challenges in reward design

Both agree that designing the perfect reward system is a challenging task, especially in global, diverse organizations. Motahar advises focusing on the basics and consciously prioritizing. Offers should be reviewed regularly and their impact on culture and strategy questioned. A “thank you” at the right moment can sometimes be more effective than elaborate programs.

Georg sums it up nicely: Like a good Netflix series, the reward system should offer curiosity, surprising elements, and individual fit. People can sense when a company truly responds to their needs. Those who achieve this build a strong and sustainable culture. The result: people who are committed to the company, lower turnover, and a long-term positive cycle.

Conclusion & Takeaways

This episode makes it clear that reward systems are much more than compensation or benefits—they are the backbone that strategically promotes or hinders a company’s culture. They must fit the vision, demand real role models, accompany employees on their individual journeys, and be able to change continuously.

Motahar provides a holistic, practical view: rewards are part of a cultural ecosystem in which leadership, values, communication, and individual development are interwoven.

Georg praises Motahar’s approach of looking at the topic holistically rather than just from the output side – and concludes by emphasizing how much rewards (can) serve as an underestimated lever for sustainable cultural development.

In short: A must-listen for anyone who wants to understand and shape corporate culture holistically.