Benefits And Benefits Of Pay And Reward Strategies

2022 Words9 Pages
Several pay and reward strategies can be adopted by organisations. However, each of the strategies involves issues that must be considered as it could affect the employees and the organisation. Therefore, it is vital that each organisation implement and develop certain pay and reward strategies, which are aligned with its own business strategies. This will ensure that perspectives of employees, employers and the costs are all considered in the course of the application of each strategy. The aim of this essay is to explain and evaluate the main pay and reward strategies adopted by organisations as well as the benefits and disadvantages of each. Graded pay, broad-banding graded-pay, labour-market-related pay, performance related pay and total reward which includes financial and non-financial rewards will all be explained in detail and evaluated as well as the benefits and drawbacks of each. Gilmore and Williams (2013) suggest that one of the most important Human Resource Management activities in any organisation is reward management such as pays and benefits as well as non-financial rewards which is also referred to as intrinsic rewards since this can have a strong impact on recruiting new people and retaining existing employees. In addition to this, Bartol and Locke (2000) and Caruth and Hand-logten (2001) explains that financial rewards satisfy employees basic needs for survival such as security and recognition at work and intrinsic rewards are the psychological enjoyment
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