Employee Incentives Essay

2098 Words 9 Pages
Employee Incentives

With today's workforce becoming increasingly diverse and organisations doing more to maximise the benefits of the differences in employees, Human Resource managers are evolving from the "old school" sideline player to the front-line fighters. Organisations are relying on managers to get the people who get the job done, and of course, make the company money. People have always been central to organisations, but their strategic importance is growing in today's knowledge-based business world like never before. An organisation's success increasingly depends on the knowledge, skills, and abilities of its employees. Particularly as they help establish a set of core competencies which distinguish one organisation from its
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Payments must reward employees for past performance while serving as a motivation tool for future performances. Organisations must balance each of the concerns while still remaining competitive. For internal equity an organisation can use one of the basic job evaluation techniques to determine relative worth of job. The most common are the ranking and classification methods. The job ranking system arranges jobs in numerical order on the basis of the importance of the job's duties and responsibilities to the organisation. Job classification slots jobs into pre-established grades with higher rated grades requiring more responsibilities, working conditions, and job duties. Base salary is only one aspect of a retention plan for important employees. Benefits and incentive plans are valuable perks in recruiting and retaining essential employees. In order to have a sound benefits package there are certain basic considerations. It is essential that a program be based on specific objectives that are compatible with the organisational philosophy and policies as well as being affordable to the company. By utilising a flexible benefits package, employees are able to choose those benefits that are best suited to their individual needs. Incentive pay plans can be advantageous to both the employer as well as the employee. The success of an incentive pay plan depends on the organisational climate in which it must operate, employee confidence in it, and its suitability to employee