Analysis of Reward and Compensation Systems in Healthcare and Retail

This essay provides a comprehensive overview of reward systems within the healthcare and retail industries. It begins by defining the total reward system, outlining its components, and emphasizing its role in attracting, retaining, and motivating employees. The essay then explores the relationship between reward systems and motivational theories, including Maslow's Hierarchy of Needs, Alderfer's ERG theory, cognitive evaluation theory, and Herzberg's two-factor theory. It highlights how these theories influence the design and implementation of compensation, benefits, and recognition programs. The paper further analyzes the effectiveness of total reward systems in both healthcare and retail sectors, discussing how these systems can enhance employee performance, increase revenue, and foster a positive work environment. The essay concludes by underscoring the significance of reward systems in achieving organizational goals and maintaining a competitive edge in the global market. The paper emphasizes the importance of aligning reward strategies with business objectives and employee needs to drive success.

Running head: Rewards systems in health care and retail industry
Rewards systems in health care and retail industry

Rewards systems in health care and retail industry
Introduction
The essay talks about the total reward system of the organization. It explains that how
reward and compensation systems are becoming the significant motivators for the companies in
order to meet the course of action within the organization. Further, it determines the various
aspects of the remuneration systems. It tells that how motivational theories influence the reward
system of the organization. Along with this, the paper explains the significance and effectiveness
of the remuneration and compensation systems in the healthcare industry and retail industry.
1. Total reward system
Total reward is the critical and significant integration of the firm approach for providing
reward and incentive to the potential and talented employees. There are various components of
total rewards system such as practices, programs, dimensions, and elements. It may be defined as
an organizational strategy to attract, retain, motivate employees. Performance and efficiency
involve the alignment and association towards the accomplishment of the business goals and
objectives of the firm. It is a long-term approach and process which is not required any
theoretical concept (Ioannidis et al, 2014). It is based on the incremental rather than on radical
and fundamental changes and it provides several benefits to the employees as well as employers.
The total reward system describes and explains a range of monetary, fiscal and non-monetary
benefits and rewards which helps to enhance and assist the reputation of the company in the
global market. Rewards and incentives provide satisfaction to the employees at the workplace.
Further, it is a group of neural structures which is responsible and accountable for incentive and
motivation salience, positive emotions, and associate learning which includes various
components of rewards (Corr, DeYoung and McNaughton, 2013).
The company uses reward systems to increase and enhance the productivity and
efficiency of the employees. In addition, various companies use this system in order to attain the
goals and objectives of the firm. Rewards also cover compensation (including equity, basic pay,
and bonuses) and other benefits as well. It also helps to provide competitive advantages in the
market. It also includes some perks benefits and some other promotions and appraisals. Rewards
and incentives play a significant role to reduce the high employee turnover of the company. The
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rewards policy and procedure of the one company differ from other company which is existed in
the market. The main aim of the reward and compensation system is to maximize and enhance
the revenue and profit of the company. Through this system, many companies are trying to
achieve corporate objectives and targets of the firm. Reward and compensation are the major
function of the human resource management within the organization. The companies use various
strategies and policies to provide rewards and incentives to the employees for performing the
task and duties effectively (Lammel, Lim, and Malenka, 2014).
Relationship between aspects of rewards system and academic theories
of motivation
There is a close and integral relationship between aspects of reward systems and theories
of motivation within the organization. The aspects of rewards system include compensation,
benefits, life/work balance, recognition, bonus, and development. Compensation is the major
aspect of reward systems which influence and encourage the employees to increase and improve
the performance of the workers in the global market. Compensation can be provided for short
term and long term. Through compensation system, the company is able to motivate and
encourage employees. The second aspect is recognition which gives happiness to the employees.
They feel that their hard work and efficiency are appreciated by the company so they
continuously do hard work to achieve the goals and objectives of the organization. Thus, it will
also motivate the workers to do work efficiently and effectively (Ruff and Fehr, 2014).
Reward systems also include some other benefits such as sick leave, leave of absence,
vacation leave and bereavement leave. It also includes Medicare and social security. In this way,
the company offers various other benefits to attract more competitors in the global market. It is
the effective and good source to overcome on the competitors around the world. Work/ life
balance is the fourth aspect of the reward systems which helps and assists to the employees to
generate a manageable workflow and health work balance between the demands of the task and
other individual and personal responsibilities. It is mandatory to keep people happy while
working at the workplace. The fifth aspect of the reward system is a development which
influences the behavior and efficiency of the employees. It also helps to encourage employees
for improving quality and performance of the workers. The company cannot survive its business
operations and activities due to lack of development. As result, many employees do not want to
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do the job in an organization for long-term and sometimes, employees leave the organization.
Thus, employers motivate, encourage and engage employees to do work with more productivity
at the workplace. Further, human resource management is a leader who provides strategic talent
management software that helps to improve the effectiveness and efficiency of the subordinates
(Richter, Raban and Rafaeli, 2015).
Along with these aspects, motivation theories also play a vital role in reward and
compensation system to attract more applicants in the global market. Various motivation theories
used by the company to maintain a good and effective reward system within the organization.
The motivation theories include extrinsic motivation, intrinsic motivation, psychotherapy theory,
Herzberg theory, Maslow’s hierarchy of needs theory, cognitive theory and Aldermen’s ERG
theory. In today’s era, these theories are very popular and effective in order to attain course of
action within the organization. There are some motivation theories have been discussed below
(Wang, Noe, and Wang, 2014).
Maslow theory: This theory provides motivation to the employees while satisfying the basic,
needs, requirements and expectations of the people. This theory has been categorized as below.
Need Home Job
Self actualization Religion, hobbies, education,
personal growth
Growth, creativity, training,
and development
Self esteem Approval society, family, and
friends.
Responsibilities, recognition,
and high status.
Belongingness Family, clubs, friends. Clients, teams, co-workers,
subordinates, and depts.
Safety and security Violence, freedom from war. Job security, workplace safety,
and health insurance.
Physiological Water, food, and sex. Base salary, heat, and air.
Alderfer’s ERG theory: This theory depends on the basic needs and requirements of the people.
This theory is categorized into three parts such as growth needs, existence needs, relatedness
needs. These are the three tiers of this theory. Alderfer believed that this theory can provide
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Rewards systems in health care and retail industry
satisfaction to the employees for doing work effectively and efficiently. The top management
and managers use this theory to motivate the employees by fulfilling growth needs and self-
actualization and existence needs (Budhathoki and Haythornthwaite, 2013).
Cognitive evaluation theory: This theory helps to motivate the employees to increase the
productivity of the people as well as employees. Under this theory, there are two motivation
systems such as intrinsic motivators and extrinsic motivators. These are the powerful and strong
motivators to encourage employees to do work effectively.
Two-factor theory: The theory was developed by the Herzberg to provide motivation to the
employees. Under this theory, there are two factors affect the motivation which includes hygiene
factors and motivators factor etc. The motivator’s factors determine the satisfaction and hygiene
factors determine dissatisfaction. Both factors highly affect the performance and efficiency of the
employees (Cerasoli, Nicklin and Ford, 2014). The motivational factor provides job security and
satisfaction to the workers.
All these theories are used by the company to motivate the workers at the workplace.
There is a close link between reward systems and theories of motivation. The company cannot
provide rewards and compensation without motivating the employees. Through motivation, the
managers are able to fulfill the goals and objectives of the firm by providing motivation to the
employees. Thus, it helps to provide good rewards, bonus, compensation, and incentive to the
skilled and capable employees within the organization.
2. Effectiveness of total reward system
Total reward systems play an integral and vital role in every organization to increase and
maximize the effectiveness of the employees. In today’s era, it is becoming a significant part of
every sector. Rewards and incentives are one of the biggest investments which are done by the
company to evaluate and analyze the talent and skills of the employees (Oberg, Christie and
Tata, 2011). Total reward systems play a significant role in healthcare and hotel industry and
retail industry (Weller, Boyd and Cumin, 2014). These industries cannot expand and flourish
their business without effective total reward systems. In the hotel industry, employees need to
provide services to their clients, guests, and travelers. Therefore, the top management must focus
on the effectiveness and efficiency of the employees. In this way, managers and top management
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evaluate and measure the performance and efficiency of the employees. Further, employees are
an important part of the healthcare industry. Mainly, patient care service department depends on
the employees. Thus, management needs to focus on the total reward system to provide various
services to the patients. The growth and success of the healthcare and hotel industry depend on
the employees (McGinnis, Stuckhardt, Saunders and Smith, 2013).
Rewards and compensation systems help to increase the revenue and target of the
organization. The hotel industry depends on the success and growth of the employees. Various
rewards and compensation programs are conducted by theses industry. Further, the retail industry
also uses a reward system to promote and increase the efficiency of the sales executives. By
using reward and incentive system, these industries maximize the growth and success of the
company. It is the major important component in order to meet the long-term mission and vision
of the firm (Chepkwony and Oloko, 2014). The company can reach easily identify and evaluate
the needs and requirements of the customers. The management builds and develops a good
relationship with employees. They build trust, loyalty, and faith among the workers. Reward
system also helps to maintain good communication and collaboration among the employees. It
makes employees happy and they give a full contribution to maximize the growth and progress
of the firm. Happier employees always perform task and duties effectively and efficiently. The
employees gain knowledge and experience from their seniors by using reward system within the
organization. It also helps to maintain flexibility and transparency at the workplace (Srinivasan
and Moorman, 2013).
Healthcare industry and hotel industry provide training and development coaching to the
employees to increase their efficiency and effectiveness. Through training and development
coaching, management builds and develops new and special skills and talent to increase the
productivity and quality of the organization (Aguinis, Joo, and Gottfredson, 2013). It will help to
improve the performance standards of the organization as well as employees. There is a wider
scope of reward and compensation system in every organization. If the management provides
additional benefits and bonus to the employees then it will help to develop a comfortable
working environment in the organization to do work effectively and efficiently (Hanus and Fox,
2015). Through good effective and unique reward system, the health retail industry can
overcome on the competitors across the world. They can also identify and evaluate the plans,
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Rewards systems in health care and retail industry
policies, and strategies of competitors with the help of potential employees. It will help to retain
and attract more candidates in the global market. The retail industry provides job satisfaction to
the employees by using reward systems in the organization. The employee's performance
depends on the various factors, therefore, it is important to evaluate and measure the incentive
plans of the organization. Further, bonus and perks benefit also provide job satisfaction and job
security to the employees in retail industry Le (Meunier-FitzHugh, Massey, and Piercy, 2011).
Reward system helps to develop and build a good spirit of teamwork and cooperation within the
organization. The hotel industry can provide financial and non-financial benefits to the
employees. The performance and efficiency of the workers in hospitality organization can be
judged and evaluated by the alertness, friendliness, appearance of the people. Effective
performance and efficiency create a high level of customer satisfaction in the global market.
Employees are the important assets of the company (Corr, 2013).
Reward and compensation systems help to develop and build personal growth and
development opportunities to the employees. It is the effective key strategy which is used by the
healthcare industry and retail industry. Further, employee empowerment is also related to the
motivation and encouragement in the healthcare industry. In the healthcare industry, most
employees work in the front office therefore, they have to do direct contact with customers.
Thus, the level of customers satisfaction for health care and hotel industry can be increased and
developed by empowering employees to deal with customers and to resolve the queries and
problems of the customers around the world (Skibicka, Hansson, Egecioglu and Dickson, 2012).
The managers should provide authorities and responsibilities to do work effectively and
to take effective decision for the welfare of the organization. They should provide proper good
opportunities to do task effectively and efficiently. After the various researchers, it has been
analyzed that management needs to focus on the key issues and problems which are faced by the
employees at the workplace (Armstrong, Brown and Reilly, 2011). They should provide freedom
to the employees for performing the task effectively. In this way, It will also help increase and
maximize the level of organizational results and outcomes. It helps to increase the competencies
and talent of the employees. Further, reward systems administration contributes to the procedure
and process of accomplishing the goals which are related to the organizational objectives and
targets (Terera and Ngirande, 2014). In the retail industry, if the company uses reward systems
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Rewards systems in health care and retail industry
then it helps to increase the sales of the company. It will also help to attract more customers in
the universal market. They gain more competitive advantages in the market to identify and
evaluate the needs and requirements of the customers around the world. In the healthcare
industry, it will motivate the front office staff and nurses within the organization. In the retail
industry, the sales executive can promote the products and services with the help reward system
in the organization. The success and growth of the retail industry depend on the promotion and
advertisement strategies. Thus, they promote salespersons to improve the working efficiency by
using reward systems in the organization. Remuneration system is a motivational tool for the
retail industry to increase the number of customers in the market. In this way, the company is
able to gain various competitors benefits within the organization (Le Meunier-FitzHugh, Massey,
and Piercy, 2011).
Conclusion
On the above discussion, it has been concluded that reward and compensation systems
play a crucial role in every organization to meet the long-term mission and vision of the firm.
The healthcare industry and retail industry cannot flourish its business activities and operation
without using effective and unique reward system in the organization. It is the motivation tool for
the organization to improve and enhance the performance and efficiency of the employees. The
companies can use reward systems as a motivator to increase and maximize the quality and
productivity of the subordinates and workers at the workplace. Moreover, the companies should
use reward systems to create a good culture within the organization. It helps to maintain
sustainability and diversity in the organization. Further, human resource management should also
focus on the reward systems and performance appraisal to motivate the employees.
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