What are employee rewards and these aims and consequences?
To optimise their company, employer has to manage in efficiency way their employees, in the framework of the human resource management. For this companies have develop new concept the reward.
Employee reward is about how people are rewarded according to the value of their organisationaccording to Armstrong (2002).
Rewards involve: according to Perkins et Al (2008)
Financial and non financial reward and benefits, the sump of them make the total reward system.
The reward management or employee reward system consists of an organisation’s integrate policies processes and practises for rewarding its employees according to their contribution, skills, competences and theirmarket worth.
To establish an employee reward, the company need structures and procedures which will provide and maintain appropriate types and levels of pay, benefits and other form of reward.
An organisation establish an employee reward system for several aims, these are the most important ones:
* Motivate people and obtain their engagement and commitment;
* Develop ahigh-performance culture.
According to Murlis (2007),
* Create total reward processes that are based on beliefs about what the organization values and wants to achieve
* Reward people for their value
* Facilate the attraction and retention of the skilled and competent people the organizations needs, so aiding the process of talent management and winning the war for talent
* Develop apositive employment relationship and psychological contract
According to Armstrong (2002)
* Play a significant part in the communication of the organisation values, performance, standards and expectations
* Align reward practice with both business goals and employee values to encourage behaviour that will contribute to the achievement of the organisations objectives and reflect thebalanced score card of the key performance drivers of customers, finance, processes and people
* Underpin organisational change programmes concerned with culture, process and structure
* Support the realisation of the key values of the organisations in such areas as quality, customer care, teamwork, innovation, flexibility and speed of response
* Provide value for money: no rewardinitiative should be undertaken unless it has been established that it will add value, and no reward practice should be retained if it does not result in added value.
Different reward or reward strategies, according to Armstrong:
Reward strategies, set out what the organization intends to do in the longer term to develop and implement reward policies, practices, processes and proceduresthat will further the achievement of its business goals.
Contribution of reward and some reward strategies to the retention, performance employee and recruitment:
Financial rewards, according to Susan M.Heathfield from About.comguide:
Whatever your personal reasons for working, the bottom line, however, is that almost everyone works for money. Whatever you call it: compensation, salary,bonuses, benefits or remuneration, money pays the bills. Money provides housing, gives children clothing and food, sends teens to college, and allows leisure activities, and eventually, retirement. The financial reward stays a mean to motivate. Therefore, fair benefits and pay are the cornerstone of a successful company that recruits and retains committed workers. If you provide a living wage for youremployees, you can then work on motivational issues. Without the fair, living wage, however, you risk losing your best people to a better-paying employer.
Total reward which combine financial and non financial rewards have benefit as: according to Brown (2006):
* Greater impact – the combined effect of the different types of rewards will make a deeper and longer-lasting impact on the...