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Rewards System Effects on Employee Retention and Performance in the UK Construction Industry

   

Added on  2023-01-06

22 Pages5139 Words38 Views
Higher Education
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Rewards System Effects on Employee
Retention and Performance in the UK
Construction Industry
Rewards System Effects on Employee Retention and Performance in the UK Construction Industry_1

Contents
TITLE: Rewards System Effects on Employee Retention and Performance in the UK
Construction Industry”.....................................................................................................................1
Introduction – Background and context for research.......................................................................1
Preliminary literature review...........................................................................................................1
Concept of reward system and its significant for organisation..............................................1
Different types of reward systems offer by company to its employees.................................2
Impact of reward system on retention rate and performance of employees in an organisation
................................................................................................................................................2
Challenges that management of an organisation face while developing reward system.......2
Rationale for research......................................................................................................................3
Tentative aim, objectives and research questions............................................................................3
Research Aim.........................................................................................................................3
Research objectives................................................................................................................3
Research Questions................................................................................................................4
Potential theoretical perspective......................................................................................................4
Potential methodology and methods................................................................................................4
Research Philosophy..............................................................................................................4
Research approach..................................................................................................................5
Research strategy....................................................................................................................5
Research choice......................................................................................................................5
Data collection........................................................................................................................5
Sampling.................................................................................................................................6
Considered ethics, limitations and contributions.............................................................................6
Timeline...........................................................................................................................................6
REFRENCES...................................................................................................................................8
Appendix..........................................................................................................................................9
Ethics Form......................................................................................................................................9
Ethics and Research Integrity Forms.............................................................................................16
Rewards System Effects on Employee Retention and Performance in the UK Construction Industry_2

Rewards System Effects on Employee Retention and Performance in the UK Construction Industry_3

TITLE: “Rewards System Effects on Performance and retention of employees in
the UK Construction Industry”
Introduction – Background and context for research
Reward system in company can be thought of serving different but related purposes, i.e.,
motivating, attracting and retaining employees. Reward systems is developed by the
organisations for motivating workforce to work towards accomplishment of strategic goals set by
business. It is concerned with employee benefits and pay along with non-financial rewards like
training, development, recognition and maximized job responsibility (Azeez, 2017). In this
proposal, the selected organisation is Morgan Sindall Group plc which is one of the well-known
construction and regeneration group of Britain. The company was established in year 1977 and
its headquarters located in London, United Kingdom. Reward system highly impact on the
performance of employees and their retention rate. This project intent to assess the impact of
reward system on retention and performance of employees. Proper analysis of impact assist in
improving the motivation and productivity of employees in an organisation.
Preliminary literature review
Concept of reward system and its significant for organisation
As per the view point of E and CHACKO, (2016), Reward is defined as the thing provided
to anyone for their contribution to organisation. Incentives and rewards contribute to execution
of strategy through shaping individual behavior in company. For an organisation, a good reward
system is very important. There are several reasons for which reward system is executed within
the organisation. These reasons include employee commitment to organisation, attendance and
retention, job satisfaction, job effort and performance etc. In exchange for the contribution of
effort and time, employees can receive variety of rewards and these are classified mainly into
extrinsic and intrinsic reward. These helps in enhancing the productivity of employees in
workplace and also increases their engagement. Reward system stimulates development and
career progression and builds morale. It brings a sense of satisfaction among the employees and
improve the team working spirit. Reward system is also significant for organisation in attracting
potential candidates and developing a strong employer brand.
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Different types of reward systems offer by company to its employees
As per the view point of Al-Emadi, Schwabenland, and Wei, (2015), Rewards are the
incentives which are given employees on the basis of their performance. The rewards may be
given in the form of pay rises, one-time bonus, commission payments, stock options, sporting
event tickets, corporate discounts and extra time off. There are some common types of reward
system which are offered by organizations to their employees. Monetary reward is one of the
very common of reward system. It is the semiannual or annual bonus which are great for
promoting healthy competition among employees in respect to productivity and performance. It
includes cash awards, stock options and profit sharing plans. Non-monetary reward system is the
another type of reward system which helps in satisfying the psychological desire of employees to
be recognized for their efforts. It includes flexible work hours, free parking, extra time off and
corporate discounts (4 Reward Systems for Employee Morale, 2017).
Impact of reward system on retention rate and performance of employees in an organisation
According to the opinions presented by Sankar, (2015), Reward system highly influence in
improving performance and retention rates of employees within the organisation. Rewards helps
in improving the morale of employees and they stay motivated and performed well within the
company. Apart from this, with the help of reward system, a sense of satisfaction is developed
among employees which leads to retain them for long term in the company. Monetary rewards
include overtime pay, recognition rewards, bonuses, sales commission and profit sharing. For the
employees who are fiscally driven, means to bolster their salary which they take home can be a
robust incentive (HOW REWARD SYSTEM FOR EMPLOYEES HELPS IN RETENTION,
2020). In addition to this, health benefit package can be a crucial part of retaining employees
within the company. So, reward system impact positively on the performance and morale of
employees and leads them to stay for longer time in the organisation.
Challenges that management of an organisation face while developing reward system
According to the viewpoint of Okotoh, (2015), there are some challenges which
management of organisation face while developing reward system for employees. One of the
challenge is that reward is not linked to the performance of employees. If the company is not
developing a credible measurement system for measuring the performance of employees and
provide employees with the rewards on the basis of the perception of management, instead of
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outcomes delivered or actual results which drive performance measures, then it creates a
challenge in front of management. The another challenge is that rewards not linked to labor
market. If the company do not track market competition compare its salary levels with the sector,
then the company is not able to retaining the talent within the firm. This creates a challenge for
management at the time of developing reward system.
Rationale for research
This study is based on the aim “To analyze the impact of reward system on performance and
retention rate of employees’ in an organisation. A case study on Morgan Sindall Group, United
Kingdom”. The main reason behind conducting the investigation is to evaluate the impact that
reward system has on performance and retention rate of employees. The study assists in gaining
understanding about concept and importance of reward system along with the types of reward
systems offer by firm to its employees (Sattar, Ahmad and Hassan, 2015). This can help the
organisation in knowing about the different types of reward system that they can offer to their
employees and keep them satisfied. Apart from this, it also helps in ascertaining the challenges
that management of an organisation face at the time of developing reward system. By
determining the challenges, we will be able to take appropriate measures which assists in
overcoming those challenges and effective way and improving the performance of employees
and their retention rate within the organisation.
Tentative aim, objectives and research questions
Research Aim
The aim in context of this study is “To analyze the impact of reward system on
performance and retention rate of employees’ in an organisation. A case study on Morgan
Sindall Group, United Kingdom.”
Research objectives
Objectives are the specific statements which defines measurable outcomes. The objectives
associated with this study are as follows:
To analyze the concept and significance of reward system.
To identify different types of reward systems, offer by company to its employees.
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