Measuring Reward System Effectiveness


Added on  2019-09-22

4 Pages392 Words514 Views
Running head: JOB ANALYSIS COMPENSATIONJob Analysis CompensationName of the StudentName of the UniversityAuthor note
Measuring Reward System Effectiveness_1

1JOB ANALYSIS COMPENSATION Rewards system has been an integral part of every business because it helps the organization toretain their employees as well as to perform better. There are various types of reward systemsuch as financial, non-financial rewards and others. However, it is important for them to analyzethe reward system they have for its effectiveness (Güngör, 2011). For example, a manufacturingcompany can conduct a systematic process to evaluate its reward system effectiveness frommultiple perspectives. Some of the ways he can do so is through:Use of employee opinion survey to know the feelings of the employees about the fairnessof the employee reward programAssessing the results of the employee reward system on operational level such asturnover and engagement.Calculating the effectiveness of the rewards system through ROI, reward program costs,value added by the employees and others. The manufacturing company calculate the effectiveness of the reward system based on theseareas. The measures will be done based on certain metrics so that they can improve the rewardssystem (Ajmal et al., 2015). The effectiveness of the reward practices will be done based onmetrics such as:Turnover rate of the employees Staff satisfaction rateAppraisal management Profit increaseVacancy rateTime taken to fill vacanciesBudget costs of the rewards system
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