EMPLOYEE REWARD SYSTEMS

Employee Reward Systems

Employee Reward Systems

Q1) Employee Compensation Decisions

Employee compensation is described as the "organization's assurance" to make available certain benefits for the employees of that an organization, such as medical insurance, transport, loan facilities, retirement benefits, etc. Every organization has a different set of procedures and policies for the compensation and benefits which entirely depends on the employee's gross salary and grade. It is an HRM planning activity that covers the payments of employees for their services they rendered to the organization. It is important to maintain and create sound compensation systems for the employees of the organization, to link to business structure that help in the process of hiring, retention, motivation of current employees, reward on performance, building employee loyalty. Employees when applying in an organization, the thing they are attracted towards is the compensation benefits provided by the company (Rezghi, 2000).

Compensation decisions are among the most critical that an organization takes, because the compensation has a direct effect on motivation, commitment and employee retention. Many pay for performance programs are programs like "A single program works for all" and monetary incentives based on scores on the performance evaluation.

Compensation benefits actually exhibits the element of how well an organization value its employees. More sound is the compensation; greater will be an employee productivity and performance. The future and growth of an organization depends on an appropriate compensation structure. The compensation and benefit policy is designed in such a way that it will motivate the employees and increase the retention rate of the company. The compensation and benefit policy includes a lot of facilities for the employees of an organization. A full health and accidental insurance is allotted to permanent employees of the organization. Not only is the employee's health important for the organization, but also the health of the employee's spouse. Free medical checkups for employee and their family on a monthly basis.

In case of emergency, the employee can take his or her 2 months' salary in advance without any time delay. This amount of cash is always available for employees. Apart from that, all employees are entitled to take a loan from the company without paying any sort of interest in the payment of the loan. Pick and drop facilities to all the employees of the organization. A total of 40 leaves are allocated to the employee every year. These leaves are paid leaves as no deduction will be done if the employees remain absent for 40 days in a year. A swimming pool and Jacuzzi is always available for the employees, where they can relax and enjoy. The employees have the facility to opt for subsidized food within the organization. The rates of food are almost half of what is being offered in the market.

Outdoor and indoor games are available for employees. They can avail this facility whenever they want. All employees are registered as members of various amusement parks and resorts where they can take their families for outing and other activities ...