”In the arena of human life the honors and rewards fall to those who show their good qualities in action.”
It is a universal phenomenon that productivity increases and a positive work environment is formed, when in an organization or a company, employees are recognized and rewarded with incentives for their performances. Reward management is a developed system that is established and maintained to continue rewarding their employees and thus nurturing and motivating them to reach higher heights. It helps to achieve the company’s objectives and goals while thus developing a rise in production. The management should have proper resources to keep a keen interest in certain employees for their hard work, contribution and dedication. A reward can be give on the basis of the long term relationship the employee shares with the employer, or the employee can also be given incentives for their outstanding contributions to the company. Individuals can be rewarded for their attendance, their excellent customer relationships, direct financial benefits to the organisation or even for their work ethics.
The major categories of reward consists of
Individual growth that includes[/b]
Investing in people
Development and training
Performance management
Career enhancement
Future Management[/b]
Vision and mission
Company growth
Company image
Stakeholder ship
Workplace:[/b]
Type of communication, trust and leadership, acknowledgement
An integrated reward system includes all factors such as culture, environment, attraction, & motivation – intrinsic and extrinsic.
Rewards can be monetary or non monetary. The monetary benefits can surely improve the morale of the ones who are interested in money but the ones who enjoy the non-monetary are among the ones who enjoy leisure over and above the monetary benefits.
Employees today are ravenous for encouragement and positive feedback, but few feel they are receiving it.
Pay is a key element in the management of people. The importance of pay begins with pay administration that deals accurately and swiftly with payroll-related matters. Much of the information used by pay administrators is shared with the human resource function. Pay evaluation systems also impinge on human resource territory. Free market organizations are particularly concerned with performance-related pay as a motivating factor but this trend appears to be ideological rather than rational since practical PRP schemes that deliver the results intended are extremely difficult to construct. Current evidence shows that performance pay is likely to demotivate more people than it motivates.
Compensation is important. If the average compensation in your company is well below average for other competing firms (firms in competition for your workers, not necessarily direct competitors in your industry), then certainly it is an issue you should address. However, the most prevalent complaint we have observed about compensation is the lack of relationship between pay and performance. If there is a lack of a strong pay/performance relationship in your organization, a non-monetary recognition program will be of limited value. If your organization pays its employees market rates, and grants larger pay increases to top-performers, an employee recognition program should be able to boost morale.
Other types of rewards can also be given to employees. Some examples are a parking space, outstanding employee plaque, corner office space, personalized items (brief cases, day planners), shirts, jackets, and employee discounts. Regardless of the type of rewards given, be consistent and fair in delivering the rewards program