Employee Rewards System
and advantages
Human resource is the most
important resource in any Organization. So these resource should be well
rewarded in a systematic way. So that reward system need to address these
following area. compensation, benefits, recognition and appreciation. .
Every company needs a
strategic reward system for employees that addresses these four areas:
compensation, benefits, recognition and appreciation. Most of the reward system
in many businesses are not including better recognition and appreciation. On
the other hand employees should be rewarded on their performance and behaviors
There are no sources in the current document..
Employees expect
appreciation at work, specially if that appreciation comes through recognition scheme
where their effort identified and work is valued. That appreciation goes a long
way and will not only make your employees feel good, but will actually benefit
your business in the process. Here’s how:
Employee Retention
This rewards system
should be systematically mapped and employees should be seen the entire career
path . Employee can see the point an places where bonuses, pay raises,
increased vacation or paid sick time and increased benefits occur during the
individual's career. Such a plan or system provides immediate incentive and appetite
for employee retention by picturing long term projections and goals. This type
of transparency also helps to build a healthy everlasting working relationship
with the company.
Employee Performance
Reward system
provide direct push to employee performance. Employees are informed transparently
that they will be given the articular rewards once the reach that certain
destination. .These programs also include aspects such as professional
development, training and performance management that allow employees to
develop new and special skills through education and training. Thereby developing
employees may come with new skills and increase their performance.
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 given time period. Where there will be no sudden expenditure and
company can make a provision of funds in the beginning. Since it is budgeted
management do not need to bare extra burden. On the other hand salary
increments , additional bonus can be allocated without extra effort..
Program Administration
Since rewards are
managed centrally every employee get equal chances in transparent manner. So
that there want be any 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 spite and loyalty towards the
Organization. As they encourage staff to see the positive attributes in one
another. Teams are encourage 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 are
predetermined standard set foe it. So the employee who reach to the standard
may undertake the recognition (Kelly, 2019) .
CONCLUSION
Whether it is a Organization, School,Business ,Institution
or home ,there should be a recognition. It is natural process that human
performance performance is based on motivation and motivation can be concerned
in reward on this increased with rewards.as better performance is compared to
absent of reward. It is not enough to have a reward but a systematic one. Hence
while motivating the employees a systematic reward system reduce conflicts. Employees
are directed to a formal career path and standards are predetermined. So that
any employee can reached them and win the rewards in a transparent manner (Ibrar &
Khan, 2015) .
References
Gish, W., 2019. The Advantages of Having a Total
Reward in Organizations.
Ibrar, M.
& Khan, O., 2015. The Impact of Reward on Employee Performance.
Kelly, D.,
2019. Benefits of employee rewards and recognition.
Most of the reward system in many businesses are not including better recognition and appreciation.
ReplyDeleteGood stuff. In fact, employee incentive programs can increase overall reduce turnover, boost morale and loyalty, improve employee wellness, and increase retention. Aside from motivation, many believe that spending more on benefits is worth it, because it attracts, maintains, and retains outstanding employees.
ReplyDeleteEmployees need to be rewarded according to their performance and that will enhance employee satisfaction which will cause indirectly to improve organizational performance. Good article Kasun.
ReplyDeleteIn an organization rewards can be considered as appreciation, recognition and it support to retain the employee. So HRM have the responsibility to implement a recognized rewards system within the organization. Thanks for sharing.
ReplyDelete