Employee Rewards System and Advantages

Why  Employee rewards matter...

In any organization, the human element is the main element of how to run the business model for success. Humans are naturally expecting a reward, money, ext, and at the same time humans are demotivated due to some external things, so keep human or employee preferments at a consistent level so they need to have a reward system that addresses these following areas: 

• Compensation.
• Benefits.
• Recognition. 
• Appreciation.

 “With employees today have increased bargaining power in a highly competitive job market, attracting high performing, skilled workers have become a challenging activity (Business Franchise Staff 2017).”

* Team members must understand and believe that what they do matters to the organization and to their personal progress.

* One of management’s responsibilities is to “clear the path (Business Franchise Staff 2017).” helps ensure that employees have a work environment that supports their goals and reduce the unnecessary obstacles to their success. 

* Create a more flexible work environment for the work team. They should eliminate unnecessary structure or tasks offer break time, recreation, and collaboration areas.

Daniel Pink’s book Drive came to an astounding conclusion. Money isn’t the only, or best, motivator. He writes “autonomy, the chance to get better at what we do, and a purpose that connects us to something larger” is a key once you’ve met basic monetary needs (Keegan 2014).” 

Every company needs a strategic reward system for employees that addresses these four areas: compensation, benefits, recognition, and appreciation. Most of the reward systems in many businesses are not including better recognition and appreciation. On the other hand, employees should be rewarded for their performance and behaviours

Employee rewards system advantage. 

“The goal of any rewards program should be to engender the loyalty and team spirit and have a good workplace where people feel appreciated,” says labour attorney Nancy Cooper (INC Staff 2011). 

Productivity

It’s well-known that engaged staff are significantly more productive, working efficiently and proactively in order to do a good job.  If efforts are likely to be praised and rewarded, then it makes sense that a member of staff will work harder to receive such employee recognition.

Controllable Expenses

A systematic reward system may provide the specific cost amount that can be incurred to the employees in a given time period. Where there will be no sudden expenditure and the company can make a provision of funds in the beginning. Since it is budgeted management does not need to bear an extra burden. On the other hand salary increments, an additional bonus can be allocated without extra effort.

Program Administration

Since rewards are managed centrally every employee gets equal chances in a transparent manner. So that there want to be no conflicts in all employee-related concerns, including benefits, pay, and training. On the other hand, it can be monitored and oversee simultaneously (Gish, 2019).            

Team Culture

Keeping a reward system may increase the team spirit and loyalty towards the Organization. As they encourage staff to see the positive attributes in one another. Teams are encouraged to perform, as they work alongside each other every day. Plus, allowing colleagues to nominate one another for rewards is empowering and no one can point the figure to one another hence there is a predetermined standard set for it. So the employee who reaches to the standard may undertake the recognition (Kelly, 2019).

 

Conclusion. 

A good reward system aims to motivate employees to work harder and align their goals with those of the organization they work for. The current trend towards performance-related reward systems is designed to lead to greater rewards and motivation for those who contribute the most. However, designing such reward systems is complex, as they aim to influence human behaviour. As the human resources director of Flowpack Engineering said (quoted in Bratton) ‘There is no such thing as a good pay system; there is only a series of bad ones. The trick is to choose the least bad one.’ 

References. 

2020.[online]  Available at:<https://www.researchgate.net/publication/305423557_Employee_Reward_Systems_in_Organizations> [Accessed 13 December 2020].

Shrm.org. 2020. [online] Available at: <https://www.shrm.org/hr-today/trends-and-forecasting/special-reports-and-expert-views/Documents/Implementing-Total-Rewards-Strategies.pdf> [Accessed 13 December 2020].

Diva-portal.org. 2020. [online] Available at: <http://www.diva-portal.org/smash/get/diva2:832968/FULLTEXT01.pdf> [Accessed 13 December 2020].