Reward Systems

Good performance is rewarded through timely job promotions, special recognition and in some cases monetary rewards and incentives.

A well-articulated compensation philosophy drives organizational success by aligning pay and other rewards with business strategy. It provides the foundation for plan design and administration and anchors current and future plans to the company's culture and values (Kaplan, 2006, p.32). Recognizing and rewarding achievement is the cornerstone of the company A’s compensation philosophy. The mission of the company is to attract, select, place and promote all individuals based on their qualifications. The company believes that performance-based compensation helps attract, develop and retain talented professionals. In addition to base pay which based upon local market conditions and targeted to be above market, the company provides the following types of potential compensation to reward performance:

In many cases different type of rewards has different type of effects on different organizations.

According to WorldatWork, the key elements to Total Rewards are compensation, benefits, Work-Life effectiveness recognition, performance management and talent development. All of these elements are key to the success of an organization because if the employees are engaged, they are willing to work hard and put their efforts and talent towards the overall success of the company in which they work. Total Rewards should be used as a strategy of any company to generate a strong workforce of the right people, in the right jobs, at the right time, who are loyal and motivated and want to do the right things in order to contribute to the success of the organization,

A total rewards system is utilized to motivate, attract, and retain employees whom offer talents to an organization. Total rewards can be either intrinsic and extrinsic rewards, which can include compensation, benefits, and personal growth. It can be somewhat difficult to retain a steady and reliable staff due to the numerous opportunities that are available in today’s workforce and organizations must do all they can to keep their employees engaged and motivated. After companies assess, design, and execute their total rewards programs, the final and most overlooked phase is to evaluate its success, or failure. The evaluation phase shows management the benefits of their total reward system and if the investment has paid off or not. Employee productivity and job satisfaction are two methods which can be used for this purpose.

The company must keep their goals in mind. The must make sure that quality is still a priority and not second to productivity. There are steps to be considered when designing and implementing a reward system. The

To be effective, incentive pay should boost the kinds of behavior that are most needed, and employees must believe they have the aptitude to encounter the performance standards. Employees must value and appreciate the rewards, and believe the pay plan is fair. Organizations can link incentive pay to individual performance, revenues, or other methods of success. They select incentives based on their budgets, anticipated influence on performance, and fit with the organizations broader HR and company strategies and objectives. As Hr. manager I will use the Merit pay system, and Gainsharing methods for incentive pay

A good manager or supervisor will implement a reward system. Employee award systems are used for motivation to ones employees, with the goal being not to just meet expectations but to exceed them performing at their best capabilities. This system includes all benefits monetary and non-monetary that proves to be worth something to the employee. Implementing a reward system for a human services organization will help ensure basic needs are met, competitive benefits are offered, benefits are equally distributed, and empoyees are treated as individuals. I will include intrinsic and extrinsic rewards in my system. “A suitable reward systems is essential to ensuring that an

To accommodate those employees that are motivated by recognition, individual rewards that include company wide recognition should be established in addition to the monetary or benefit rewards. Team recognition awards could also be established. This would create a little friendly competition while providing openly displayed performance numbers which in turn provides positive feedback for increased performance. By making sure that the reward system has value and makes the employee desire to make the goal and

Additionally, they work harder to reach the goals set by the organization in order to achieve the reward. Rewards based on performance are profitable for both the individual employee and organization.

Organizations that reward employee performance receive a return on investment (ROI) through greater customer satisfaction, less turnover, and employee moral (Reed & Bogardus, 2012). Studies show high-performing companies put much emphasis on total rewards to attract and retain the best talent in the industry (Ramona & Anca, 2013); this is why the collection and analysis of job reward data are crucial to the success of organizations. “Price is what you pay. Value is what you get” (Buffet, 2008, p. 5).

Reward Management (RM) has been defined as the distribution of monetary and non-monetary rewards to employees in an effort to align the interests of the employees, the organisation, and its shareholders (O 'Neil, 1998). In addition O 'Neil (1998) also suggests that a RM system can serve the purpose of attracting prospective job applicants, retaining valuable employees, motivating employees, ensuring legal requirements relating to direct and indirect rewards are not violated, assisting the company in achieving human resource and business objectives, and ultimately assisting the organisation in obtaining a competitive advantage.

Effective managers must also reward employees for a job well done. Rewarding not only signifies appreciation, but, according to Searles (2015), it also will

The overall aim of reward management is that employees should be rewarded for the value they create.

Many organisation adopts rewards system for the purpose of their employee’s motivation. It is used as one of the effective instruments to increase employees’ productivity and to strengthen the employee-management relationship. These reward systems can be broadly divided into two categories, financial rewards and non-financial rewards.