Employee Reward Plan of Royal Bank of Canada

This paper analyzes the employee reward plan of the Royal Bank of Canada, including the purpose of the reward plans, types of rewards provided, and strategic recommendations for improvement. The report also includes a case study on Wilson Brothers and recommendations for their reward system.

Running head: ORGANISATIONAL BEHAVIOUR AND MANAGEMENT
Organisational Behaviour and Management
Name of the Student:
Name of the University:
Author Note:

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EXECUTIVE SUMMARY
The primary aim of this paper is to analyse the employee reward plan of the organisation
named as the Royal Bank of Canada. To fulfill this purpose, the report is concentrated on
examining the reward plan of the concerned banking industry. Further, the report is focused
on reviewing the purpose of the reward plans that is leveraged by the bank to its employees in
order to maintain the employee-organisation relationship in an effective and efficient way.
Moreover, the report also examines the type of rewards that the Royal Bank of Canada
provides to its employees. Furthermore, the report provides some strategic recommendations
that would help the organisation of the Royal Bank of Canada to improve its employee
reward system. Finally, the report ends with the analysis of the Wilson Brothers Case in the
concern of providing recommendations to the same about improving the reward system that it
offers to its employees.

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Table of Contents
Introduction................................................................................................................................3
The reward plan – Royal Bank of Canada.................................................................................3
Purpose of the reward plans.......................................................................................................4
Types of Rewards.......................................................................................................................5
Recommendations......................................................................................................................7
Wilson Brothers Case Scenario..................................................................................................8
Conclusion..................................................................................................................................9
References................................................................................................................................10

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Introduction
The Royal Bank of Canada is considered to be a Canadian multinational company that
offers its customers with financial services and is also known as the largest bank in the
banking market of Canada concerning its market capitalisation (Coleman, 2016). Royal Bank
of Canada is known to be founded in the year of 1864 in the region of Halifax and is
headquartered in the province of Quebec and Ontario. The concerned bank is known to serve
more than 16 million clients all across the globe. Not only this, but the bank is also
considered to work with 80,000 number of employees in its global sector of operation
(Cuervo Castro, 2016). The bank is recognised to maintain and retain its employees
effectively and efficiently by providing them with extra rewards and facilities that motivate
the employees to work harder and sustain themselves in the bank. In this connection, the
given report is focused on identifying the different forms of employee rewards that the bank
offers to its connected employees.
The reward plan – Royal Bank of Canada
The reward plan to the employees is leveraged by the Bank of Canada in the terms
and conditions that the employees are motivated and a sense of accomplishment is created in
their mindset about their work, and they retain themselves in the concerned banking industry
(Latukha, 2016). In this connection, the Royal Bank of Canada is focused on providing its
employees with both monetary and non-monetary reward plan benefits. The organisation has
set its reward plan in a way that the four significant areas of recognition are adequately
covered to motivate the employees. The areas of strategic reward system include
compensations, benefits, appreciation, as well as recognition (Shields et al., 2015).
Concerning to this system, the organisation of Royal Bank of Canada have recognised its

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need to reward its employees and appreciate their activity performance as well as behaviour.
In this connection, the reward plan of the organisation includes the following areas.
 Shout-outs
 Professional as well as personal development
 Distributing non-cash rewards
 Competitions
Purpose of the reward plans
The reward plans are leveraged by a business entity in the concern of motivating and
retaining the employees in the long run of the same (Elegbe, 2016). In this connection, the
reward plans offered by the Royal Bank of Canada is also provided keeping some strategic
purpose in the management plan. The purpose of each of the reward plan is described below.
Shout-outs
Shout-outs are done in the working organisation of the concerned banking industry
with the purpose of making the employees feel appreciated and recognised about their
performance level as compared to their other co-workers (O’Hara, 2017). This lets them feel
accepted in their working place as they know that their work is valued and recognised, which
gives them a mental satisfaction to work in the organisation.
Professional as well as personal development
The concerned banking industry offers its employees with the synergy of different
training and development programs, which helps them to build their skills personally as well
as professionally. This helps the employees to encourage themselves to have self-motivation
and urge to work with greater enthusiasm in the organisation. Thus the purpose of the
organisation to motivate its employees to work effectively is fulfilled.

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Distributing non-cash rewards
The Royal Bank of Canada is not only focused on providing its employees with
monetary benefits, but it also offers its employees with the token of appreciation in various
forms of gifts as well as mental satisfaction rewards (Jacques, 2017). The company ensures
that the working organisation remains free of biasness and discrimination. It also ensures that
the female employees of the bank can work equally without feeling harassed. Not only this,
the competent employees of the organisation are rewarded on a frequent basis with non-
monetary gifts as well. This fulfills the purpose of maintaining a healthy working
environment in the concerned bank.
Competitions
The concerned banking industry is known to set competitions between the different
workers of the organisation. This fulfills the purpose of achieving higher productivity in the
organisation along with the encouragement as well as the motivation of the employees to
stand at the highest position amongst all their competitors and get recognised in their
performance. The banking industry pays different variable schemes and incentives to its
employees on this basis of competition.
Types of Rewards
Concerning the organisational behaviour theory of Reward Management and
Employee Reward System, the bank under discussion here is recognised to provide its
employees with core packages of benefits concerning its offerings of reward plans to its
employees (Trevino & Nelson, 2016). In this context, the reward plans offered by the
concerned banking industry are specified below.

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Medical facilities
The medical facilities provided by the bank helps its employees to be secure about
their health concerns and emergencies. The employees are able to avail the facilities in need
of themselves and their own family members as per the rules and norms set by the
governmental policies regarding the safety and security of the employees.
Life and Accident Insurance
This reward offered to the employees are related to the uncertain accidents that the
employees get through while duty or even off-duty. The employee working with the
organisation of Bank of Canada are provided with the opportunity of leveraging themselves
to live as well as accident insurance policies. The same helps the employees in case they get
through an uncertain accident or death. The families of the employees are benefited with the
monetary synergies even after the end of the employees because of the life insurance policy
they adopted.
Short-term Income protection
The ideology of short-term income protection is leveraged by the Royal Bank of
Canada to its employees in the adverse situation when the employees are not capable of
working for some days, say a week, because of some injuries caused to them or they suffer
from a matter of illness. In this scenario, the Royal Bank of Canada provides its employees
with a cover of 80% of the target the employees are supposed to meet for a certain period of
time.
Long-term Income protection
The synergy of the long-term income protection reward is provided to the employees
connected to the Royal Bank of Canada in the scenario when they suffer from a long-term

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illness or even when the organisation is suffering from loss (Johnson, 2018). This reward
benefits the employees with the security of receiving a certain amount of money also if the
company is not into profit and when the same are suffering from a specific prolonged disease.
Initiatives for women
The Royal Bank of Canada provides its female employees with a healthy and human-
friendly working environment along with the advantages of better pay and incentives scheme
(Nag, 2018). The bank ensures that the females working in their organisation are given equal
rights as well as are free to work in an anti-harassment environment guaranteed by the
organisation. The female workers are also leveraged with the rights of maternity leaves and
rest period so that their health and safety is ensured.
Performance incentives
The concerned bank is known to provide its employees with various incentives and
pay-out schemes so that the employees are motivated to work with greater enthusiasm and
zeal. This is so because the pay-out plans are offered to the employees on the basis of their
performance level. In order to achieve the same, the employees are concentrated on working
with greater effectiveness and bringing more productivity to the organisation so as to get
better results and stand at higher paradigm in their working organisation and get recognised
amongst their peer workers. Thereby, both the individual as well as the organisational goals,
are achieved in this case.
Recommendations
Although the Royal Bank of Canada is effective and efficient enough in offering its
employees with various rewards as per its strategic reward plan, still it lacks behind as
compared to its other potential banking competitors. As opined by Crane, Matten & Spence
(2019), there always lies an opportunity for every business entity to improve its strategic

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management and bring effective changes to the working condition of the same. In this
connection, the given report tends to state some implications that would help the concerned
banking organisation to improve its employee reward system.
 Involving the employees in the designing of the system of the bank and get ideas from
the employees about the working structure of the bank. This will prove helpful to the
organisation to get feedback from the employees and value them as well.
 Rewarding the employees according to their performance and behaviour that impacts
the strategic goals of the company. This will help the company to reward only the
genuine employees and not the ones who fake their performance on the hard work of
others.
 Reward the teamwork of the employees as well when there are competitions level
based in the organisation that involves the work of a group. This will foster better
collaboration in the organisation and get better productivity for the bank.
Wilson Brothers Case Scenario
Based on the study of the case scenario of Wilson Brothers, the given paper tends to
recommend the following implications that would help them to improve its reward system
and sustain its employees (Mone & London, 2018).
 Matching the reward system with the demographics of the employees that will help
the organisation value the employees.
 Be specific and consistent in providing the reward to the employees and not just
holding a contest as per the sales are made by the employees.
 Rewarding every employee with different level of grades as per their performance so
that every employee feel motivated to work and understand the need for performing
better.

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Conclusion
Hence, to conclude, the given paper tends to state that the employees are an integral
part of a business entity, that is required to be retained in the business organisation to get the
work plan and process of the same fulfilled. In this connection, the employees should be
frequently rewarded both in a monetary and a non-monetary manner that keeps them
motivated and enthusiastic about working in one organisation for a more extended period of
time. The Royal Bank of Canada is known to retain its 80,000 employees with the help of
frequent motivation in concerning of rewarding them for their performance and behaviour.

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References
Coleman, W. D. (2016). Financial services, globalisation and domestic policy change.
Springer.
Crane, A., Matten, D., & Spence, L. (Eds.). (2019). Corporate social responsibility: Readings
and cases in a global context. Routledge.
Cuervo Castro, N. S. (2016). Multicultural work environment as a key in cross-cultural
negotiations and organisations' performance: Canada overview (Doctoral dissertation,
Universidad del Rosario).
Elegbe, J. A. (2016). Talent management in the developing world: Adopting a global
perspective. Routledge.
Jaques, E. (2017). Requisite organisation: A total system for effective managerial
organisation and managerial leadership for the 21st century. Routledge.
Johnson, C. E. (2018). Organisational ethics: A practical approach. Sage Publications.
Latukha, M. (2016). Cross-Country Perspectives of Management of Talented Employees in
the Emerging World. In Talent Management in Emerging Market Firms (pp. 31-65).
Palgrave Macmillan, London.
Mone, E. M., & London, M. (2018). Employee engagement through effective performance
management: A practical guide for managers. Routledge.
Nag, P. K. (2018). Office Buildings: Health, Safety and Environment. Springer.
O'Hara, K. D. (2017). What We Say Without Saying It: A Study of Perceptions of
Organizational Culture and Women in Leadership.

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Shields, J., Brown, M., Kaine, S., Dolle-Samuel, C., North-Samardzic, A., McLean, P., ... &
Plimmer, G. (2015). Managing employee performance & reward: Concepts, practices,
strategies. Cambridge University Press.
Trevino, L. K., & Nelson, K. A. (2016). Managing business ethics: Straight talk about how to
do it right. John Wiley & Sons.