Structure of reward strategy

Importance of reward management

These include: When deciding on a pay scale: Making sure that the current system is fair and equal for employees, Deciding on benefits such as bonuses, Comparing pay against other companies and reviewing all jobs after a major company pay change. According to Herzberg, real motivation comes from the work itself, from completing tasks, while the role of reward is to prevent dissatisfaction arising. A good reward strategy will consider more than just pay, so it is important to do more than scour the local press to find out what the market is paying. Job evaluation[ edit ] Job evaluation is closely related to reward management. Personal Growth Providing personal and professional growth opportunities to employees is an essential part of any reward strategy. A total reward approach looks at what your organisation is trying to achieve, what your people want, what is affordable and the structures needed in place to achieve this. This assessment will enable the training to be based on certain factors which seem most important. A few questions may be asked in the process: What can an employee learn in order to be more productive? These can be skills acquired on the job as well as formal training programmes valued by the employees that also serve the organisations strategic needs. In the United Kingdom, it is now illegal to discriminate workers' pay levels and benefits, employment terms and conditions and promotion opportunities. However, is job evaluation enough?

If this is true it may help reduce staff turnover which is very beneficial for employers as it reduces the cost of hiring new staff. And finally who should benefit from the training most?

reward strategy in hrm

This includes both fixed salary and allowances and variable bonus and incentives pay. A comparison between public and private sectors and the methods of job evaluation is another area that should be considered for further research. It is important to understand and identify a job's order of importance.

A disadvantage of these methods of job evaluation are that they are very static and it would be very difficult to perform a job evaluation quickly if it was needed.

Reward management pdf

A total reward approach looks at what your organisation is trying to achieve, what your people want, what is affordable and the structures needed in place to achieve this. An employee's efficiency can be proven if the targets he was set, have been achieved. Job evaluation provides the basis for grading, pay structure, grading jobs in the structure and managing job and pay relativities. An experienced pay and reward consultant, such as 3R Consulting, will have experience in reward strategy covering a wide range of organisations and business types. This assessment will enable the training to be based on certain factors which seem most important. Maslow saw these levels of needs being fulfilled one at a time in sequence from bottom to top. The benefits include holidays, medical cover, income protection and pension schemes. Job evaluation[ edit ] Job evaluation is closely related to reward management. Why does my organisation need a reward strategy? These vary depending on the size of the organisation and affordability but can provide security and comfort to the employees and their families. These can be skills acquired on the job as well as formal training programmes valued by the employees that also serve the organisations strategic needs. Improve performance: performance improvement is the notion of measuring the productivity of a certain procedure, and then finding solutions in order for the productivity to rise, the capability of the employees and their effectiveness. This includes both fixed salary and allowances and variable bonus and incentives pay. Research regarding job evaluation has mainly been conducted using qualitative data collection methods such as interviews, large scale surveys and basic experimental methods.

However, applying a strategy to your pay and reward can deliver real benefits for the organisation, the workforce and your business. If his performance was seen as insufficient, his pay would be cut down.

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How to develop a reward strategy