02. Introduction to Rewards Management

 

Key Components of Reward Management

Types of Reward Policies

Types of rewards could be segregated in many angles

Financial / Non-financial Bonuses, salary Increments, employee benefits, appreciation,  gifts,	Rewards/ Benefits/ Perks  Rewards split in two categories: intrinsic and extrinsic.
Financial Rewards/ benefits/ Recognition/ Appreciation	Intrinsic / Extrinsic Internal intrinsic rewards are the non-tangible. External or extrinsic rewards are the tangible rewards that employees receive upon completing a task or meeting a goal.

01. Compensation and Benefits

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   • Salary and Wages: Determining competitive and fair monetary compensation for employees based on factors such as skills, experience, and market benchmarks.
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   • Benefits Packages: Designing comprehensive benefits, including healthcare, retirement plans, and other perks, to enhance the overall compensation package.
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4. 02. Recognition and Appreciation

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   • Non-Financial Rewards: Acknowledging and appreciating employees through non-monetary means, such as verbal recognition, awards, and career development opportunities.
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   • Employee Recognition Programs: Establishing formal programs to highlight and reward outstanding performance, fostering a culture of appreciation.

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8. 03. Career Development Opportunities

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   • Training and Education: Providing opportunities for employees to enhance their skills and knowledge, contributing to both personal and organizational growth.
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   • Promotion and Advancement: Establishing clear paths for career progression, giving employees a sense of purpose and opportunities for professional development.

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2. 04. Work-Life Balance

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• Flexible Work Arrangements: Offering flexibility in work hours or remote work options to promote a healthy work-life balance.
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• Wellness Programs: Implementing initiatives that support employees' physical and mental well-being.

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4. 05. Performance Management

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• Performance Appraisals: Evaluating and rewarding employees based on their individual and team contributions.
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• Merit-Based Increases: Linking salary increments to performance assessments, motivating employees to strive for excellence.

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3. 06. Job Satisfaction and Engagement

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   • Employee Satisfaction Surveys: Gathering feedback to understand employees' perceptions of their compensation and overall job satisfaction.
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   • Employee Engagement Programs: Implementing strategies to enhance employee engagement, which contributes to increased productivity and retention.

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Importance of Reward Managemen

1. Talent Attraction and Retention:

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   • An effective reward system attracts top talent to the organization and helps retain valuable employees by ensuring competitive compensation and a positive work environment.

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3. Motivation and Performance:

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   • Well-designed reward systems motivate employees to perform at their best, aligning individual goals with organizational objectives.

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5. Employee Morale and Satisfaction:

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   • Recognizing and rewarding contributions positively impacts employee morale and satisfaction, creating a positive workplace culture.

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7. Organizational Performance:

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   • A strategic approach to reward management contributes to overall organizational performance by fostering a motivated and engaged workforce.

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9. Adaptability and Competitiveness:

   • Organizations that continuously assess and adjust their reward strategies are better equipped to remain competitive in attracting and retaining talent in a dynamic business environment.

Recognition & Reward

	Reward Systems	Employee Recognition
Purpose	Employee reward systems are established with the primary goal of recognizing and incentivizing exceptional performance. They are designed to motivate employees by offering tangible rewards.	Focus on acknowledging and appreciating employees for their contributions and good work.
Types	Monetary Rewards This includes bonuses, salary increases, profit-sharing, or other financial incentives directly impacting an employee's income. Non-Monetary Rewards These could be tangible items like gift cards, travel vouchers, or other non-cash perks.	Verbal Praise Simple words of appreciation and encouragement. Written Acknowledgement Thank-you notes, certificates, or emails recognizing accomplishments. Awards  Formal recognition through plaques, trophies, or other physical symbols of achievement.
Cost	Incurs a cost for the company, as financial or material resources are allocated to provide the rewards.	While some recognition programs may involve tangible awards, many are relatively low-cost or even cost-free. Verbal praise and acknowledgment don't necessarily require a financial investment.
Distribution	Rewards can be tailored to individual achievements or provided to groups, fostering teamwork and collaboration

Conclusion

Effective reward policies often combine elements to create a comprehensive approach that aligns with the organization's values and objectives.

Well-planned reward system is instrumental in creating a positive work environment, enhancing employee satisfaction, and ultimately contributing to the success and growth of the organization.

In essence, recognition and rewards work together to create a positive and motivating work environment. While recognition satisfies the intrinsic need for acknowledgment and appreciation, rewards provide extrinsic benefits that recognize and reinforce exceptional performance.

References

1. Bhasin, H. (2021) Reward Management – Definition,Types and Benefits. Available at https://www.marketing91.com/reward-management/ (Accessed: 08 November 2023).

2. Milke, H.(2021) Employee Rewards: 4 Types of Rewards That Work.  . Available at https://lerablog.org/business/economy/employment/employee-rewards-4-types-of-rewards-that-work/ (Accessed: 08 November 2023).

3. (2018) Should You Revise Your Company’s Bonus Strategy?. Available at https://workproud.com/should-you-revise-your-companys-bonus-strategy/ (Accessed: 08 November 2023).

4. Jahan, S (2014) Types of Rewards  Available at http://hrmpractice.com/types-of-rewards/ (Accessed: 08 November 2023).

5.Balquees91(2017) Reward system – Motivation , Available at https://www.slideshare.net/balqees91/reward-system-motivation (Accessed: 10 November 2023).

6. Greggu (2019) what is Total Rewards?. Available at .https://www.youtube.com/watch?v=pX40RTsaJ00 (Accessed: 11 November 2023).