Serandib Bank

This report examines 3 different compensation systems that our company can develop and enforce within our company for our employees. Compensation is the most important and rewarding factor for employees, so a thorough and thoughtful approach should be taken as we think about changing the way in which this company rewards it's employees for the work they do for us each and every day.

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.

The key components to developing effective Reward Strategy is to ensure that there are clearly defined goals to meet business objectives, that the reward programme meets the needs of both the organisation and its employees, and to ensure that this is then supported by effective HR policies. In order to ensure these criteria are met there are a number of factors which influence how reward strategy is developed which include both internal factors within the organisation itself, as well as external factors outside the organisation.

A motivated workforce can be a significant success when employees are motivated to work at a higher levels of productivity. Also this means the whole organization is more effective at reaching it’s goals. Rewards can be a positive outcome when it comes to boosting your organizations self-confidence and higher employee satisfaction. Having a reward system can always be a good outcomes because this shows how much your workers are willing to work to achieving a goal in order to receive something in return. This not only gets things done but brings out another side of your organizations as a whole.

In the workforce, employees turns to be more involved in the successful results when they know that they will share in the rewards (Wilkinson, 1992). There have to be a well established incentives for better creation of ideas and efforts which would lead to increased business. Rewards allows employees to see themselves being valued and recognize their involvement in the business. Employees' morale and motivation is boosted and the staff progress on with higher level of creativity and

The implication of financial rewards are fairly debatable and have gained significant attention through numerous publications. The sizeable influence of this subject has generated major controversy over the potential impact of this trend. Over the decade, many scholars have discussed this phenomenon while citing credible sources.Therefore, I consummately accord with this statement that rewarding an individual for his service is both encouraging and motivating for others. Additionally, employees could also include group rewards such as dinners and holidays.

A reward system in the human service organization is a great idea. Having a reward system can help boost morale and give employees something to look forward too and work harder to strive to get the reward that is being offered. When deciding to have a reward systems there are many things that need to be considered.

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

Armstrong (2012) affirms that definitions of total rewards characteristically includes not only traditional, quantifiable elements such as salary, variable pay and benefits but comprises also more intangible non-cash components such as gaining knowledge, ability to acquire and act or take responsibility, progress in career, and the conducive environment provided by the organization. SZT Corp requires a pretty complex and flexible total rewards program to meet the needs of their multi-national colleagues. The total rewards programs has to slightly vary for each country that SZT Corp operates in and must cover compensation, benefits, performance and recognition, learning and development, and a work-life balance. SZT Corp has to maintain a total rewards program that remains competitive with the competitors in the different nations all over the world.

The employee of Harrods has a great response by their job activities to the organization. Reward system has a great effect on organization achievements and employee effectiveness in their work and doing their task efficiently. The intrinsic reward system has a very good effect on employees. Employees has opportunities

The phrase “employee reward system” is used to underline the programs that a company sets up in an effort to reward the desirable habits of the employees, thereby motivating them on group and/ or individual levels. More often than not, they are considered separately from the salaries and remunerations but may essentially be monetary in nature or otherwise bear a certain cost to the business entity (Marquis & Huston, 2009). As much as these were previously seen as the domain of large corporations or business entities, small businesses have essentially taken the cue and began employing them as a technique for luring or retaining its top employees in the extremely competitive job market, as well as enhance the performance of the employees. This is especially considering that the reward systems have a bearing on the job satisfaction of the employees in the business entity. As earlier noted, while employee recognition programs are usually blended with reward programs, they come with a distinctive or separate purpose altogether (Marquis & Huston, 2009).

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.

Human Resource Management (HRM) is described as a “distinctive approach to employment management” (University of Leicester, 2006:5), which mainly focuses on employees as the key driving force to achieve organisational success. This qualitative approach differs from traditional personnel management systems that aim to integrate HRM into strategic management beyond HRM’s routine functional role. This integration supports sought after organisational objectives to include quality, commitment, and flexibility. This paper examines the key HRM function of reward management, in particular, performance related-pay systems, presenting their main concepts, roles, weaknesses and strengths in comparison to the old traditional pay system.

Reward and recognition programs must connect the needs and expectations of the workforce with the company’s overall goals and strategies. A program that reinforces important company values and goals will encourage employees to act in line with such goals and emphasize the importance of achieving these goals. Alternatively, rewards which do not connect with organizational goals may convey a misleading message and encourage employees to act in a manner that does not facilitate the

Being rewarded and recognised for their work or contribution is what keeps an employee motivated to work towards achieving the organisational as well as personal goals. When the employees is motivated by rewards, they will have job satisfaction consequently increasing the productivity of the organisation. It necessitates the need of managers to pay more attention in understanding their employees and come up with suitable types of reward systems for the organisation so that the employees are intrinsically and extrinsically motivated all the time. The hypotheses that I put forward here is to support this statement that effective reward management is critical to