The need for reward management and systems

The offer of an additional reward gives an employee that extra motivation to go above and beyond. Some rewards may cost money, whereas others are investments in time and effort. All can contribute to a more pleasant work environment. Incentive Employees must know that hard work and a high level of achievement will be rewarded financially.

The need for reward management and systems

Reward processes are based on reward philosophies and strategies and contain arrangements in the shape of policies and strategies and contain arrangements in the shape of policies, guiding principles, practices, structures and procedures which are devised and managed to provide and maintain appropriate types and levels of pay, benefits and other forms of reward.

Reward management - Wikipedia

This constitutes the financial reward aspect of the process which incorporates processes and procedures for tracking market rates, measuring job values, designing and maintaining pay structures, paying for performance, competence and skill, and providing employee benefits.

However, reward management is not just about money. It is also concerned with those non-financial rewards which provide intrinsic or extrinsic motivation. The key issues facing reward management are: How to achieve internal equity and external competitiveness? How to respond to a fragmenting pay market and maintain a reasonably coherent pay structure?

How to concentrate on rewarding for output and maintain, indeed enhance quality standards? How can we reward individual performance and contribution and promote teamwork? How to introduce sophisticated performance management process and ensure that managers are committed and have the skills required to get the best out of them?

How can we give high rewards to high achievers and motivate the core of the employees upon whom we ultimately have to rely? How to achieve consistency in managing reward processes and provide for the flexibility needed in ever-changing circumstances?

How can we devolve power to the line managers to manage their own reward processes and retain sufficient control to ensure that corporate policies are implemented? How to continue to provide motivation for those who have reached the top of their pay range and maintain the integrity of the grading system and contain costs?

How to introduce more powerful pay-for-performance schemes and ensure to get value of money from them? How to deliver the message that improved performance brings increased reward and cap bonus earnings to cater for windfall situations or a particularly loose incentive scheme?

How to operate enterprise-wide bonus scheme and ensure that they increase motivation and commitment? How to reward people for their outputs and their inputs? How to operate job evaluation schemes as a means of allocating and controlling gradings in a formal hierarchy and cater for the role flexibility which is increasingly required in the organization?

Greater sensitivity to sector and functional market practice to enable more effective market positioning to help with attracting and retaining high caliber employees. The implementation of increasingly focused performance awards starting at the top and working down through organizations as performance orientation increases.

More attention given to achievement or success-oriented individual bonuses rather than payment increases in base pay. A move towards team pay as the importance of teamwork increases.

More flexible pay structures based on job families and using broader pay bands or pay curves. More integrated pay structures covering all categories of employees.While the private sector has not solved the problems this dual use of performance management systems can produce, it does appear that organizational commitment to the performance management system reduces the problems that occur when the summary appraisal is the focus of the system.

Reward management is a popular management topic. Reward management was developed on the basis of psychologists ' behavioral research. Psychologists started studying behavior in the early s; one of the first psychologists to study behavior was Sigmund .

The need for reward management and systems. Published: November 4, Reward management is not just about money. As shown in the above diagram, it is concerned with intrinsic as well as extrinsic rewards and with non-financial as well as financial rewards.

Intrinsic rewards arise . The rewards used do not need to be monetary. It is important that the reward is something desired by the employees.

The need for reward management and systems

Skill development and better career choices are highly prized rewards in some career fields. To be properly effective, the rewards must be based on performance. We develop Performance Management Systems tailored to the specific needs of each organization and Reward Systems that enhance employee performance, motivation and retention, creating a contemporary and complete performance and reward framework.

The main purpose of reward management is to provide interest and motivation to employees.

The need for reward management and systems

When interested, workers are more dedicated to maintaining a high level of performance. When motivated by some type of reward or compensation, production, performance and work quality improve. The rewards used do not need to be monetary.

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