Reward Management
Figure 01:
Employee
productivity and contribution are becoming increasingly important to every firm
in today’s highly difficult work climate. Employees that lack motivation may be
an issue for any firm, and poor employee performance can have far-reaching
consequences. As a result, firms provide a variety of financial and
non-financial rewards in order to get the most out of their employees, and
these payments and other advantages inspire individuals to achieve higher
levels of performance.
Employee
remuneration refers to how employees are compensated in a company. It’s not
just about the money when it comes to rewarding management. It also includes
non-monetary incentives that generate inner or extrinsic motivation
Components
of Total Reward
Figure 02:
Financial
Rewards
Financial
rewards are another name for monetary incentives. The most conventional and
widely used type of incentive is monetary compensation. Financial incentives
are any incentives that come in the form of money or riches. Base pay, bonuses,
overtime payments, and commissions are some examples of financial
incentives.
Non-financial
Rewards
Non-financial
rewards are another term for non-monetary benefits. Non-monetary incentives are
related to the employee’s social and psychological requirements. Employees do
not labor just for the purpose of earning, despite the fact that money is a
fundamental requirement. Many incentives are available to meet the social and
psychological needs of employees. Non-monetary incentives encompass all social
and psychological entices that motivate employees to do their best and do extra
labor. It includes any rewards which focus on the need people perceive to
varying degrees for, recognition, praise, achievement, responsibility, and
personal growth.
The
importance of Reward Management
Having
a reward management system in place has numerous benefits for a company,
particularly in small to medium-sized businesses where managers must maintain
positive relationships with their staff. Reward programs have proven to be
quite effective at motivating employees and, as a result, improving the overall
performance of the company.
Conclusion
The
key to making a reward system successful is ensuring that employees understand
the distinction between money and non-financial rewards, as well as the
benefits and relevance of both. Financial rewards, such as cash bonuses, may
briefly inspire an employee and may be useful in this situation, while
non-financial rewards remain in the employee’s mind indefinitely. These types
of gifts have not only helped people feel valued, but they have also increased
their morale and motivation.
References
Grewar,
C. (2021, April 30). Resources Blog. Retrieved from perkbox Website: http://www.perbox.com
Dessler,
G. (2008). “Benefits and services”. In Human resource management (pp. 520-523).
Mendis,
M. (2017, September 25). The Impact Of Reward System On Employee Turnover
Intention: A Study On Logistics Industry Of Sri Lanka. Retrieved from
Semantic Scholar Website: http://www.semanticscholar.org
So Informative. Well written with great explanation
ReplyDeleteSewwandi as you have clearly explained Reward management is a motivational practice that businesses use to reward employees for their achievements and success. The company sets goals and establishes rules for its employees to follow to achieve those goals. It makes sure that employees are clearly aware of these goals, rules, and the rewards they will get for high performance. All employees follow the same reward system, and the system is organized and just. Using a website to track employee development enables the employee and employer to monitor progress and easily identify when goals are reached and rewards earned. Thanks for sharing and keep writing. Really help full and interesting to read
ReplyDeleteI have got to know how reward management help to grow business.and how both parties c get benefits through this so thanks sewwandi give this information for us very clearly, good luck
ReplyDeleteNicely you articulated your thoughts, Remember; rewards are designed as a way to show your staff appreciation for their hard work, and whilst extra money is often cited as motivators for employees, it’s often the intangible employee benefits which have the most impact on staff morale. Regardless of the benefits you offer to staff, seek to make your workplace an atmosphere where hard work is recognized and rewarded on a regular basis. Thanks for knowledge sharing
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