Reward Management

Reward Management
• It is about the development,
implementation, maintenance,
communication and evaluation of reward
processes.
 Incentives & rewards
• Financial incentives: to motivate people to
achieve their objectives, improve their
performance by focusing on specific
targets.
• Financial rewards: provide financial
recognition to employees for their
achievements.
 Competence related pay
• Method of rewarding people wholly by
reference to the level competence they
demonstrate in carrying out the roles
• Pay is related to competence and
• People may be rewarded with reference to
their level of competence.
 Skill based pay
• Links the pay to the level of skills used in
the job
• And sometimes acqusition and application
of additional skills by the person carrying
out the job
 Team based rewards
• Payments or other forms of non-financial
rewards provided to members of a
formally established team.
• It is not easy to design
 Profit sharing
• To encourage employees to identify
themselves more closely with the
company
• To stimulate interst in the employees in
the affairs of the company as a whole
• To encourage cooperation between
management and employees.
 Stock options
• Right to purchase a specific number of
shares of company stock at a specific
price.
• It is long tem executive incentive and
retention tool.
 Merit pay
• Gives salary increases to individuals
based on their supervisor’s appraisal of
their performance.
• Purpose is to improve motivation and
retain the best perofrmers.
 Employee benefits
• Elemets of remuneration given in addition
to various of cash pay.
• Pension scheme, insurance cover
• It might also include benefits that are not
strictly remuneration like holidays
Statutory and voluntary benefits
• Statutory benefits are to be given to
employee by the organization regardless
whether it wants or not.
• Voluntary benefits :
holidays,vacation,special leave,sick
leave,health insurance, medical
benefits,subsidized meals at canteen…