Rewards Flashcards
What are rewards?
Incentive plan to reinforce desirable behavior of employees in return for their service to the organization.
It can be monetary and non monetary
Objective of rewards is to attract, maintain and retain efficient, high performing and motivated employees
What is a reward strategy?
It defines what an organization wants to do about rewards in the future and how it intends to do it.
It leads to the development of a reward system. Reward strategy should be underpinned by a reward philosophy
What is a reward philosophy?
A reward philosophy of an organization represents its beliefs about how people should be rewarded
Reward philosophies are guiding principles that define the approach an organization takes to dealing with reward
What are the objectives of reward strategy?
It provides motivation for reward system design and operation to achieve 3 objective
- performance
- competitiveness
- fairness
What questions does a reward strategy answer?
- What do e need to do about our reward practices to ensure they are purposeful
- How do we intend to do it
What is a strategic reward?
It is a means of enhancing company performance and securing competitive advantage through alignment of pay strategies, systems, practices, processes to the organizational strategy.
What are reward policies?
Specific guidelines for decision making and action which are communicated to employees
What are the components dealt by reward policies?
Level of rewards
Importance attached to internal/external competitiveness
Equity of the organization
Use of job evaluation
Achieving equal pay
Approach to total reward
Scope for the use of contingent rewards related to performance
Role of line managers
Transparency
Assimilation of employees to new pay structure
Protection of pay of employees affected by new pay structurers
Decisions on the rates of pay offered to staff on appointment and promotion
What is reward management?
It is concerned with strategies, policies and practices required to ensure that the value of people and the contribution they to achieve organizational, departmental and team goals is recognized and rewarded
Designing, implementation & maintenance of reward systems that aim to satisfy the needs of both the organization as well as the stakeholders to operate fairly and equitably
Deals with non-financial rewards
Eg: recognition, learning and development opportunities, increased job responsibilities
What are the aims of reward management?
- Rewards people according to the value they create
- Support achievement of business goals
- Promote high performance
- Support and develop organizational culture
- Define right behaviors and outcomes
What are recognition schemes?
Part of a total rewards package that enables appreciation to be shown for individuals for their achievements.
Either informally or through formal recognition arrangements
Quiet or visible celebrations of success
What is reward evaluation?
It uses information obtained from reward reviews and reward measurements to assess level of effectiveness achieved by reward policies and practices
“Comparison of reward outcomes with reward objective to answer the question of how far the reward system has achieved its purpose”
What are the aims of evaluating rewards?
Find out how established reward policies are working to identify the problems
Establish whether reward innovations are functioning as planned to achieve the set objective
Ensure value for money
Provide evidence required to bring improvements
What is a total rewards strategy?
It covers tangible and intangible aspects of work that people value
It is a long term approach to how an organization’s reward policy balance and support the needs of both organizations and its employees
What are the elements of total reward strategy?
Base pay
Well being
Benefits
Employee development
Recognition
Credible leadership
Viable pay
Meaningful work
