Factors And Proposal: Choka Enterprises Inc.

Employee compensation is critical for the satisfaction, motivation, and preservation of the workforce within an organization. HR managers plan, direct, and coordinate salaries, retirement plans, health insurance, and other employee benefits that an organization offers its employees. An organization should spend a great deal of time and resources to plan, create, and implement effective employee compensation strategies. Accordingly, in my opinion HR managers need to carefully examine these strategies that will ultimately effect and meet the organization’s targets and objectives. According to Gerade (2003), the implementation of reward and compensation within an organization will alter an employee’s thought toward organizations view of

Pay and reward systems exist in the form of pay, bonuses and benefits, financial and non-financial and designed to improve performance, increase motivation, staff retention and increase profitability. Appreciation and gratitude is widely received as reward and the opportunity for training and development for career progression.

A well-articulated compensation philosophy drives organizational success by aligning pay and other rewards with business strategy. It provides the foundation for plan design and administration and anchors current and future plans to the company's culture and values (Kaplan, 2006, p.32). Recognizing and rewarding achievement is the cornerstone of the company A’s compensation philosophy. The mission of the company is to attract, select, place and promote all individuals based on their qualifications. The company believes that performance-based compensation helps attract, develop and retain talented professionals. In addition to base pay which based upon local market conditions and targeted to be above market, the company provides the following types of potential compensation to reward performance:

Compensation is the total reward received by an employee in exchange for services performed for an organization, it can include both direct pay (salary and wages) and indirect pay (benefits program) (Siddique, n.d). Compensation management refers to the way or ways the employer takes care of one of the most difficult problems with the employee, the employer wants to save money so that it may be further invested in the company meanwhile the employee wants a good remuneration for his or her services (Siddique, n.d). the objectives in compensation management are: promote fair contributions to the employees, recruit qualified people, retain present employees, ensure equity of compensation, reward smart work, appreciate creativity and innovation,

Reward Management (RM) has been defined as the distribution of monetary and non-monetary rewards to employees in an effort to align the interests of the employees, the organisation, and its shareholders (O’Neil, 1998). In addition O’Neil (1998) also suggests that a RM system can serve the purpose of attracting prospective job applicants, retaining valuable employees, motivating employees, ensuring legal requirements relating to direct and indirect rewards are not violated, assisting the company in achieving human resource and business objectives, and ultimately assisting the organisation in obtaining a competitive advantage.

Management with metrics allows an organization to have a true measure of how it has reached its goals and objectives as well as act as an evaluation and analysis tool (Rees & Smith, 2014).

Many of today’s companies survive and prosper based on their productivities and outgoings of their employees. A holistic approach to servicing the employee’s needs ensures that their mindsets, efforts and productivities are all “on the job” and so this limits the worrying of any uncontrollable part of the employees work experience, working conditions, payments and the relevant benefits. So, to describe Total Rewards System or TRS in a roundabout way;

According to Gary Dessler compensation refers to all forms of pay going to employees and arising from their employment. The phrase 'all forms of pay' in the definition does not include non-financial benefits, but all the direct and indirect financial compensations. Compensation is a systematic approach to providing monetary value to employees in exchange for work performed. Compensation may achieve several purposes assisting in recruitment, job performance, and job satisfaction. Compensation systems are basically developed to reward employees behavior so that they are lead to accomplish organizations overall goals and objectives.

Employees are provided with a compensation program that is market-focused, well-balanced, and performance-based and provides incentives to deliver appropriately on both annual and long-term results. Most compensation and benefits managers work full time and may work long hours. Compensation managers are responsible for managing an organization’s pay structure. They monitor market conditions and government regulations to ensure their pay rates are current and competitive. They may collect and analyze data on wages and salaries, and they evaluate how their organization’s pay structure compares with other companies. Compensation managers then use this information to maintain or develop pay scales for an organization. Some also design pay-for-performance plans, which include guidelines for bonuses and incentive pay. They may help to determine commission rates and other incentives for sales staff. The median annual wage of

Performance and Reward Management are the strategies, policies and integrated processes that deliver sustained success to organizations by improving the performance of people and developing the capabilities of individual contribution and teams and recognizing these contributions and teams by both financial and non-financial rewards.

A reward scheme includes all the non-monetary, monetary and psychological payments that your company provides her employees, in exchange for work they do. A reward scheme could include both intrinsic and extrinsic rewards.

Employee compensations refer to the sum of all the benefits and rewards granted to an employee due to their employment with an organization. The development and implementation of an appropriate compensation system will help an organization attract and retain the most talented and qualified people to help realize a company 's mission and goals. According to R. Wayne Mondy (2014) compensation is one of the largest motivators and concerns of employees. Further, comprehensive compensation packages have been adopted by nearly every business as an effective technique in overall success of an organization and employee satisfaction.

A reward is a consideration that is given to an employee by the organisation on return to the quality of services rendered by the respective employee. Owners of the organisation (in most cases, shareholders) are the ones who will approve the rewards to employees including the directors, head of departments and the lowest cadre of employees. A company may also reward non-employee stakeholders for their contribution to the organisation.

Reward management is about the development, implementation, maintenance communication, and evaluation of reward processes. These processes deal with the assessment of relative job values, the design and management of pay structures, performance management, paying for performance, competence or skill (contingent pay), the provision of employee benefits and pensions, and management of reward procedure.

The newly introduced Reward Management system does not have the proper balance between the Financial and Non - Financial Rewards, individual and group rewards. Financial rewards and group incentives are one way businesses can show their appreciation to employees for hard work and dedication, but this should be just one piece of the compensation system. Non-financial rewards and individual incentives can carry just as much weight by empowering employees, as well as giving them a sense of accomplishment and of belonging.