Employee Rewards

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Employee Rewards

Introduction

This essay argues that most of the companies reward employees for their outstanding work through monetary rewards like bonus and pay raise is an effective way to motivate employees to work hard. Human resource personnel are constantly looking for innovative and fresh ideas to obtain positive outcomes by reward programs, recognition and incentive. Additionally, in order to deliver the results, nowadays HR professional requires a solution that is efficient and east to manage and gives the flexibility to become accustomed to dissimilar programs that the company is supporting and promoting.

High performance organisations comprehend the significance of giving incentives and awards that value outstanding work, validate and recognize potential and hardworking employees. They help in keeping workforce motivated and are effective reinforcement methods of organisational goals and expectations, particularly, when there is no or less merit budget is available, overall job satisfaction is low, health premiums on the rise and promotions are rare. There are a number of factors that add to the overall success of incentive programs and employee awards, such as support and commitment by top management, clearly defined objectives and goals, and effective promotion along with the right incentive and consistent communication.

Discussion

In many companies, there are three performance-related pay forms at individual, team and organisation level. The key challenge with individual performance-related pay refers that it presume employees are encouraged by compensate alone that is not right. Referring to the intrinsic or psychological rewards cited before, an individual increment in salary without intrinsic rewards is probably to wander to where these are accessible. Ultimately, a system or reward is intended at maintaining and strengthening psychological agreement. This is a sign of what is company paying for and what company values. For instance, if a firm values teamwork, it is probable that there will be a few team bonus forms. Psychological agreement to a degree determines what employees perceived as free in the rewards' form for the jobs they have completed. Disruptive workplace is an endeavour to restore equality to remuneration. More than anything else, psychological factors or agreement infringement results on more problems with workforce. There is a need of senior management commitment to improving the reward system. Hence, it is proposed that they must put into place an effective performance based pay scheme to keep the workforce motivated and to reduce redundancy in the organisation (Armstrong, Brown, & Reilly, 2011, pp.106-120).

Workers have to make a distinction between direct and indirect compensation; thus, a company can effectively prompt their employees. Direct pay is an increment received by the bank account such as base/salary wage, overtime, commission, merit pay, bonuses, paid leave and profit sharing. However, indirect pay refers to a portion or benefit of the overall package of reward in addition to the direct pay such as subsidized meals, subsidized entertainment, health club membership, mobile phone, health and car insurance coverage, company car, retirement plans, pension and health care. It can logically state that rewards attract, motivate and ...