Reward Management Essay

Total Rewards reflects what employees’ value from its employer. It focuses on five elements that attract, motivate, and retain the talent to achieve business goals. These elements are: Compensation, Benefits, Work- Life, Performance and Recognition and Development and Career Opportunities (WorldatWork, 2007, p. 4). This paper describes the five advantages of a total rewards approach, five ways a total rewards strategy can go astray, six steps involved in the design of a total rewards program and eight steps involved in the communication process of a total reward program (WorldatWork, 2007, p. 15-64). Finally, the paper

As the labor force becomes more highly developed and demanding, rivalry between organizations for talented employees is drastically increasing. It is extremely important that organizations make their company more enticing as an incomparable career opportunity. Instituting a total rewards system into an organization can do much to help it invite the paramount talent available and significantly condense turnover. The longevity of an organization’s employees is contributed to its total reward system. According to Heneman (2007), total rewards is defined as all of the tools, whether intrinsic or extrinsic, offered to the employer that may be employed to attract, motivate and retain employees. This could

Many high performance companies understand the importance of offering awards and incentives that recognize, validate, and value outstanding work. They help keep the employees motivated and productive, and are effective methods of reinforcing company expectations and goals. When the management of a department gets together to put an incentive program into place, they have to decide which awards are worth the effort. They also have to consider the perceived value of earning the award, as well as the effort that is required to earn it. Management and employees may perceive non-monetary incentives to be more valuable than the retail value of the award in cash. Non-monetary rewards in

* It enables the organisation to attract and retain the individuals. Most of the time organisations use a total reward approach: attractive basic or contingent pay, attractive benefits such as holiday, healthcare, shares… and non-financial rewards such

Total reward is all of the tools available to the employer which may be used to attract, retain, motivate and satisfy employees. Total reward is inclusive of all types of rewards such as direct and intrinsic as well as extrinsic (Armstrong and Murlis, 2007). All aspects of reward including base pay, contingent pay, benefits and non-financial reward are linked together as a coherent and integrated whole. The total reward approach is holistic, and therefore reliance is not based on just a few reward mechanisms functioning in isolation and includes all the ways in which people achieve satisfaction and reward for their work (Armstrong and Brown, 2006). Total reward plays a vital role in communicating the value of the employment package to

Human Resource Professionals also design and install incentive pay systems. Incentives are pay systems that reward employees for their efforts beyond normal performance expectations. In order to pay incentives, organizations measure employee performance at three levels; Individual level, Group level, and Organizational level. Individual level incentives are merit pay, skill-based pay, competency-based pay, piece rate pay, standard hour systems, employee suggestion systems and commissions (Heneman & Gresham, 1998). Merit pay is provided to employees for their individual behavioural contributions to organization. In skill based pay, pay increases are based on skill mastery. It is used by organizations in order to improve organizational

To be effective, incentive pay should boost the kinds of behavior that are most needed, and employees must believe they have the aptitude to encounter the performance standards. Employees must value and appreciate the rewards, and believe the pay plan is fair. Organizations can link incentive pay to individual performance, revenues, or other methods of success. They select incentives based on their budgets, anticipated influence on performance, and fit with the organizations broader HR and company strategies and objectives. As Hr. manager I will use the Merit pay system, and Gainsharing methods for incentive pay

A good manager or supervisor will implement a reward system. Employee award systems are used for motivation to ones employees, with the goal being not to just meet expectations but to exceed them performing at their best capabilities. This system includes all benefits monetary and non-monetary that proves to be worth something to the employee. Implementing a reward system for a human services organization will help ensure basic needs are met, competitive benefits are offered, benefits are equally distributed, and empoyees are treated as individuals. I will include intrinsic and extrinsic rewards in my system. “A suitable reward systems is essential to ensuring that an

In modern business world, any organization can strategically use; pay, compensation, benefits and other rewards as effective performance management instruments to increase operational efficiency and enhance performance. It is very important for the organisation to attract, motivate and retain the best people who will be a key influence on its future success. Furthermore, in recent times, most members of the community believe that skilled people are an essential part of sustaining an organization's long-term competitive advantage. So, successful pay, rewards, compensation and benefits strategies are the main components that can ensure people are paid equitably, recognise and reward excellent performance, and aid the

According to Jack Zigon (1995), rewards can be defined as “something that increases the frequency of an employee action” and this in other words means that an employee must be judged by his very performance within the company in order to offer him the rewards. (Prudden, 2004)

However not in all organizations employees are responsible of their career development and it might need managerial presence in order to be achieved. For that rewards like incentives, promotions, praises and appraisals are created. It is how-ever argued whether rewards affect to work motivation or just the quality of working life since it is commonly agreed that monetary rewards like bonuses or incentives have only short time effect on human behavior and motivation is a long run matter. Cam-eron&Pierce (2002, 11) even claimed that money or other high rewards can be harmful or lead to negative motivation if they are frequently used since employees might get used to it and when monetary rewards are being discontinued it can make them do less and more importantly enjoy less of their doing since there is no reward

Hence, the performance management pay system is a good way to motivate and encourage employees to perform better in their job in order to get paid, especially the workers who have low commitment towards the organization. From the perspective of an employee, the compensation which provided by the company is a return in an exchange between their employer and themselves (Milkovich, Newman, & Gerhart, 2014). The employees perform well in their job as a return of the salary they get. Besides, the employees stay in the organization when they are motivated in completing their jobs. This is a good way to retain the employees from resignation. Hence, the pay system used by the Company D is better than the another three companies which provide pay for performance of achieving objectives, various criteria and progress against targets

This qualitative study was conducted through a serious of thirty two questions. The content of the questions used in this study were introductory questions to get background information on the employee’s, whether or not employees were happy with the way financial rewards are calculated and disbursed, also if employees felt non financial rewards are more important than financial rewards. Other topics that are questioned are: motivations for working, equity, different perceptions on job satisfaction, if environment has an impact on job satisfaction, and rewards in management control in order to retain employees within the company (Galanou et al., 2010).

Effective compensation and reward systems have proven to be very important tools that are beneficial to both company and its employees. The company should consider these systems when selecting new hires. An effective system can make the difference in turnovers and retentions. The new hires compensation should be based on their skill level and the ability to execute the duties that the job description requires. The employer will benefit more from an employee who knows what is expected of them and that they are being compensated accordingly. Companies that offer rewards for exceptional work performances, usually get the employees that work to their full potential. Sign on bonuses, great benefits package, raises, paid time

Rewards can either be intrinsic or extrinsic which can encompass both monetary and non monetary incentives. Intrinsic and extrinsic rewards are different but they are closely associated. Often an extrinsic reward for the recipient will provide intrinsic rewards. For instance, an employee who receives a reward in the form of salary increment can also interpret the wage increase as a sign of a job well done. Extrinsic rewards include all rewards that have a monetary value such as basic pay, pay contingent on performance, contribution, competency or skills.