Reward System for Employees : Essay
Added on 2020-07-22
9 Pages3408 Words125 Views
Leadership ManagementPolitical Science
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Managing Human ResourceManaging Human Resource
INTRODUCTIONManagement of human resources is a significant area of any organisation which involvesstaffing, remuneration and other benefits of employees which can motivate workers to workmuch better for the development of the company (Terera. and Ngirande, 2014). The total rewardsystem is an extra benefit for employees which motivates them to work better according to setstandards and qualities. This essay is mainly based on the reward system for employees whichcan motivate them to work better in the organisation which can help to them to earn more. It willalso identify the link between motivation and reward.Total reward is the term which describes about the relationship between employeesperformance and rewards given to them. So both have inverse relationship as there is morereward, performance will go high and if reward is low then performance will be constant. Totalreward system is the employee reward strategy which includes investment by the organisation onemployees i.e. pay, pensions, learning and development, etc. Total reward system is a long-termapproach where it motivates employees to work well and for the organisation. It should not bebased on complicated structures, as it may confuse employees. Its foundation should be based onincremental basis, and it is not necessary that it include monetary values only. Every individualis unique in their own way and it is not everyone whose motivation only involves around money,each and everyone’s need may differ like some employees are career driven so they will work inless salary also as their objective is to get higher position in the company (Chelnokova, Willoch.and Leknes, 2014). On the other hand some employees may only work for earning incentives,some are attracted to office environment or packages by the companies. Sometimes manager’sinvites their team for team lunch or for long vacations after every achievement which is teamreward and it motivates a team to give better performance than before. So overall it can be easilyevaluated that rewards can be in two forms: monetary and non-monetary rewards. Monetaryrewards as the name indicates is in the terms of money or valued with money like increment insalary, bonuses or incentives. While non-monetary rewards are those which cannot measure inmoney but still motivates the employees by making them feel that they are very important for theorganisation, like introducing them in seminars, appraisal by CEO for his good job, appreciationby seniors in front of subordinates by clapping, etc. The structure of reward system helps anyorganisation in attracting finest employees to work with them, sometimes reward system is seen
as an organisational work culture. For example people from all around the world, wants to workwith google as they provide free work culture and no pressurized work is given to the employees.The motivation level of their employees are very high as their reward system is very amazing(Lammel, Lim. and Malenka, 2014). So it is essential for the senior management to construct areward system according which is suitable and preferred by the employees which can help tomotivate more to them to work. Non interesting rewards can decrease the appealing factor of thereward system to target employees so it is better to construct according to the employees. Totalreward system also work on a model called total reward approach:Engagement: This block includes the activities and rewards which engages theemployees with the company like values, opportunity of growth, contribution in managementdecisions, takes their views in discussions, giving them a trophy at the time of retirement, teamlunch, etc. Benefits: Here, employees are given benefits in monetary and non-monetary form. Thesebenefits are: Holidays, child education, maternity leave, child care coupons, medical benefits,provident funds, pension, etc.Basepay: This column includes employee’s basic salary onlyDifferent kind of total reward system: Human resource managers knows that to get goodresults from employees they need to offer a decent salary. There are various kinds of TotalReward System which can be awarded to employees:Monetary Rewards: This rewards are in the form of money, employees can be excited oraroused by seeing extra earnings which reflects in their payslips respectively (Bracht, Müller.and Walther, 2014). Monetary rewards are of various types:Compensation: It includes long-term and short-term incentives or pay, as all persons arenot equal in their ability, for example if a person has given a target to make 100 pizzas but theyhave a capacity to make 150 pizzas. Here compensation will work like if the company rewardsthem or compensate them £5 for every extra pizza they made then they will be motivated formaking more pizzas and company will also benefit as it can save the cost of hiring extraemployees for the same work to be done.Bonuses: Sometimes compensation alone will not work well, so companies have to givebonuses on some festivals like Christmas to motivate the employees to work for it. Bonuses are
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