EMPLOYEE REWARDS AS AN ESSENTIAL REQUIREMENT OF AN ORGANIZATION

 


                                                            Figure 1: Employee rewards- Source (Wong, 2020)

Appreciation is an important requirement for high employee engagement and performance. Organizations use many methods to appreciate employees which support employee satisfaction, better engagement, and high productivity. The employee rewarding process is doing reliable involvement on above.

Employee reward system (VANTAGE CIRCLE, 2021)

Employee reward systems are to support the organization to build a proper plan on recognizing and implementing the most effective appreciating levels. It helps organizations build their employees' achievements by praising them with financial or non-financial prizes. With such a system, you can activate different types of rewarding ideas that motivate employees to contribute to their best performance. A well-managed reward system can help reduce corporate problems. At the same time, it provides a good opportunity for the organization to identify and recruit the best talent.

Three main categories of rewards (VANTAGE CIRCLE, 2021)

There are 3 main categories of employee rewarding in HRM.

Intrinsic and Extrinsic rewards -

Intrinsic rewards are gifts given on motivation that bring high job satisfaction. Some examples are attractive job titles, career growth, appreciation. Extrinsic rewards are the direct rewards that employees receive for high performance. It includes bonuses, allowances, gifts. Intrinsic (Motivational) gifts make a company employee feel valued. Similarly, evaluating external (performance)  rewards focuses on improving employee engagement.

Financial and Non-financial rewards-

Financial rewards help employees' financial needs. It includes promotions and incentives. Non-financial rewards focus on appreciating employees through employee benefits. E.g. lodging, refreshments, gift cards.

Performance-based and Membership-based rewards-

Performance-based rewards are designed on the employee's contribution and the effectiveness of the task at hand. They are offered as salary plans, incentives, bonuses, or commissions. Membership-based rewards are given in the form of benefits and services provided to the company's employees. For example, it could be the annual Christmas bonus, company retreat, upgraded office furniture, and so on.

Importance of Employee rewards (Spiegel, 2021)

  • Support employees to work with satisfied and motivated attitudes
  • Visible appreciation on workers to have a happy environment
  • Encouraging competition between employees to work in an effective manner
  • High employee retention to remain experienced spirits
  • High performance and productivity
  • Friendly and tranquil work environment.

Conclusion

Nowadays the world is fast moving with a competitive business process where organizations improve their reward methods fast and wide. Employee rewarding is less concerned in state banks in Sri Lanka which decreases high employee productivity. Each and every employee must be rewarded for better productivity.

References

Spiegel, S.(2021) Top 6 Reasons to Implement a Rewards and Recognition Program. [Online]
Available from https://www.crewhu.com/blog/top-6-reasons-to-implement-a-rewards-and-recognition-program
[Accessed 11 dec 2021].

VANTAGE CIRCLE (2021) Employee Reward System: 7 Key Things to Look Out For. [Online]
Available from https://blog.vantagecircle.com/employee-reward-system/
[Accessed 11 dec 2021].

VANTAGE CIRCLE (2021) Types Of Rewards: A Quick Guide For HRs. [Online]
Available from https://blog.vantagecircle.com/types-of-rewards/
[Accessed 11 dec 2021].

Wong, K. (2020) 10 Employee Incentive Programs to Engage Your Team. [Online]
Available from https://www.achievers.com/blog/employee-incentive-programs/
[Accessed 11 dec 2021].

 

 

 

Comments

  1. MafadDecember 11, 2021 at 1:22 PM

    Employee reward and recognition programs are a very effective way to motivate employees.

    ReplyDelete
  2. Tharaka Pathirana December 18, 2021 at 12:21 AM

    Giving gifts and privileges to employees in an organization increases employee motivation and motivation. (Jones, 2019)
    But continuing to give gifts to employees can reduce employee efficiency and lead to additional costs.

    ReplyDelete
  3. amila MBA HR blogsDecember 18, 2021 at 3:48 AM

    Rewording is always effecting to the employer motivation, through that factor it will return benefit for the organization performance . good tropic thanks for the shearing

    ReplyDelete
  4. ARSHAD MBADecember 18, 2021 at 6:13 AM

    Rewarding your employee's by letting them hear positive comment's even from client's will also motivate them to add value to individual and develop their brand image.

    ReplyDelete
  5. E127918December 19, 2021 at 5:31 AM

    When it comes to recognizing people for their hard work, we as HR managers must follow the basic principles of employee appreciation. We must not only make this a regular practice for ourselves, but we must also urge others to do likewise, so that they may incorporate it into their day-to-day working relationships.

    ReplyDelete
  6. ajaykrDecember 21, 2021 at 1:38 AM

    Wonderful blog! Appreciation is a simple gesture or praise that can boost employee morale and motivate them. Especially, in the remote workplace, the need for recognition grows even more crucial. We bring virtual rewards and recognition ideas to engage remote employees in recognition activities at the workplace.

    ReplyDelete

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