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    Employee Reward System

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    wjd501
    The document discusses reward strategy and management. It outlines the objectives of a reward strategy as supporting corporate values, linking to organizational performance, driving desired behaviors, and providing a competitive edge to attract and retain skilled employees. A reward strategy consists of elements like base pay, additional pay like bonuses and incentives, and employee benefits. Organizations generally take one of three approaches to reward: focusing on service, skills, or performance. Developing an effective reward strategy involves considering issues like pay structures, performance pay, team pay, and relating bonuses to organizational goals.

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    Employee Reward System

    Uploaded by

    wjd501
    271 views11 pages
    The document discusses reward strategy and management. It outlines the objectives of a reward strategy as supporting corporate values, linking to organizational performance, driving desired behaviors, and providing a competitive edge to attract and retain skilled employees. A reward strategy consists of elements like base pay, additional pay like bonuses and incentives, and employee benefits. Organizations generally take one of three approaches to reward: focusing on service, skills, or performance. Developing an effective reward strategy involves considering issues like pay structures, performance pay, team pay, and relating bonuses to organizational goals.

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    The document discusses reward strategy and management. It outlines the objectives of a reward strategy as supporting corporate values, linking to organizational performance, driving desired behaviors, and providing a competitive edge to attract and retain skilled employees. A reward strategy consists of elements like base pay, additional pay like bonuses and incentives, and employee benefits. Organizations generally take one of three approaches to reward: focusing on service, skills, or performance. Developing an effective reward strategy involves considering issues like pay structures, performance pay, team pay, and relating bonuses to organizational goals.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    271 views11 pages

    Employee Reward System

    Uploaded by

    wjd501
    The document discusses reward strategy and management. It outlines the objectives of a reward strategy as supporting corporate values, linking to organizational performance, driving desired behaviors, and providing a competitive edge to attract and retain skilled employees. A reward strategy consists of elements like base pay, additional pay like bonuses and incentives, and employee benefits. Organizations generally take one of three approaches to reward: focusing on service, skills, or performance. Developing an effective reward strategy involves considering issues like pay structures, performance pay, team pay, and relating bonuses to organizational goals.

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    Reward Strategy and Management

    INTRODUCTION
          

    THE OBJECTIVES OF A REWARD STRATEGY THE ELEMENTS OF REWARD STRATEGY MANAGEMENT APPRAOCH TO REWARD REASONS TO LINK PAY TO PERFORMANCE DEVELOPING A REWARD STRATEGY TYPES OF REWARD GLAXCO WELLCOME & HALIFAX PLC

    INTRODUCTION
    

    Employee Reward is about how people are rewarded in accordance with their value to an organisation. It involves both financial and non-financial reward which consists of an organisation's integrated policies, processes and practices for rewarding its employees in accordance with their contribution, skill and competence framework of an organisation strategies (Armstrong, 2004).

    THE OBJECTIVES OF A REWARD STRATEGY

    Armstrong and Mullins (1994) suggest that reward management strategies must:  Be congruent with and support corporate values and beliefs.  Be linked to organisational performance  Drive and support desired behaviour at all levels.  Fit desired management styles  Provide the competitive edge needed to attract and retain the level of skills the organisation needs.
    4

    THE ELEMENTS OF REWARD STRATEGY


    BASE PAY 2. ADDITIONAL TO BASE PAY  Individual performance related pay  Bonuses-lump-sums paid for successful performance  Incentives-target related pay to motivate people  Commissions-Percentage on sales value  Service related pay-increasing pay scale  Skill based pay-knowledge based  Allowances 3. EMPLOYEE BENEFITS  Pension  Company car  Annual holidays, Insurance cover and sick pays
    1.
    5

    MANAGEMENT APPROACH TO REWARD


    Generally, the approach to reward adopted by employers takes one of three forms:  Focus on service -is characterised by openended agreements about continuity of employment, incremental pay scales ad annual reviews.  Focus on skills produces higher rates of pay with greater skills.  Focus on performance emphasises target setting, adapting to change and a close relationship between what the employee achieves and what the employee is paid.
    6

    REASONS TO LINK PAY TO PERFORMANCE

    MOTIVATION  RETENTION  PRODUCTIVITY  COST-SAVINS  EMPLOYEECOMMITMENT


    

    DEVELOPING A REWARD STRATEGY

    Reward strategies deal with issues concerning:


          

    Pay structures The use of job evaluation The approach to keeping with market rates Paying for individual performance, competence or skills. Team pay Relating bonuses to organisational performance The provision of pensions and benefits.
    8

    TYPES OF REWARD
    Type of reward
    Individual Reward

    Type of effort
    Basic Wage Over time
    Commissions Bonuses Merit paid leave Benefits

    Time: maintaining work attendance

    Competence: completing task without error

    Team Reward

    Team Bonuses Gain sharing profit sharing Share ownership Gain sharing

    Co-operation with co-workers

    Organisational Reward

    Source:

    Bratton and Gold, Human Resource Management: Theory and Practice

    REWARD STRATEGY OF GLAXO WELLCOME

    Competitive market rates to attract, develop, motivate and retain quality staff. Levels of reward that vary, depending on the contribution of the individual, team and operating company to overall business success. Designed to maximise the potential contribution of all employees. Cost-effective employees choice in determining component parts of their own benefits package.
    10

    HALIFAX PLC Change the emphasis from measuring the job and its accountabilities to recognising the person and the contribution they make to the business.  Reflect the way the organisation is changing staff to be more responsive and flexible to customers needs.  Improve reward for excellent performance by freeing up salary ranges.
    
    11

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