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Employee Reward System Overview

An employee reward system consists of an organization's integrated policies, processes, and practices for rewarding employees according to their skills, competence, and market worth. The objectives are to attract, retain, and motivate high-quality people while encouraging behaviors that contribute to organizational goals. A total reward system links an organization's strategy, pay system, and employee behavior through both financial rewards like basic pay, benefits, bonuses, and incentives, as well as non-financial rewards like recognition, praise, and achievement.

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sagarsirohi
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3K views28 pages

Employee Reward System Overview

An employee reward system consists of an organization's integrated policies, processes, and practices for rewarding employees according to their skills, competence, and market worth. The objectives are to attract, retain, and motivate high-quality people while encouraging behaviors that contribute to organizational goals. A total reward system links an organization's strategy, pay system, and employee behavior through both financial rewards like basic pay, benefits, bonuses, and incentives, as well as non-financial rewards like recognition, praise, and achievement.

Uploaded by

sagarsirohi
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd

REWARD SYSTEM

Prepared by:
Rupender Sharma
Pushpanjali
Sagar sirohi
Sanchita sharma
WHAT IS A REWARD…..
USED BEFORE THIS HAPPENS……
WHAT IS A REWARD SYSTEM?
• An employee reward system consists of an
organizations integrated :
▫ Policies
▫ Processes
▫ Practices
• For rewarding its employees in accordance to
their
• Skills
• Competence
• Market worth
REWARD STRATEGY
• All the employee's available tool that may be
used to
▫ attract
▫ retain
▫ motivate
▫ satisfy employee
• It links company’s
▫ strategy
▫ pay system
▫ employee behavior
COMPONENTS OF TOTAL REWARD
SYSTEM
• Financial Rewards
• Employees Benefits (Total Remuneration)
• Non Financial Rewards( Recognition, praise,
achievement)
• Performance management and personal growth
processes.
OBJECTIVES OF REWARDS-
ORGANISATION POINT OF VIEW
• To drive desired behavior in employees.
• To attract, retain and motivate high quality
people.
• To communicate organization values.
• Encourage behaviors that will contribute to
achievement of organization objective.
• Support quality, customer care, team work and
innovation.
OBJECTIVES OF REWARDS-EMPLOYEES
POINT OF VIEW
• Treat them as stake holders
• To meet their expectations that they will be
treated with equality, fairly and consistently.
BUSINESS STRATEGY

HR STRATEGY

REWARD STRATEGY

PERFORMANCE
MANAGEMENT

FINANCIAL REWARDS NON FINANCIAL REWARDS


PERFORMANCE NON FINANCIAL
FINANCIAL REWARDS
MGMT REWARDS

RECOGNITION
BASIC PAY

EMPLOYEE ACHIEVEMENT
BENEFITS
RESPONSIBILITY
VARIABLE PAY

BONUS

INCENTIVES

ALLOWANCES

TOTAL TOTAL REWARD


REMUNERATION SYSTEM
FINANCIAL REWARDS
Any reward which is paid in terms of money
It includes
• Basic pay
• Employee benefits
• Variable pay
BASIC PAY
• Fixed salary or wage that constitute the rate for
the job.
It can be
• Annual
• Monthly
• Weekly
• hourly
EMPLOYEE BENEFITS
These are pay which are given indirectly in the
form of
• Pensions
• Sick pay
• Insurance cover
• Company car
• Mobile phone
VARIABLE PAY/ CONTINGENT PAY
Additional financial rewards that are based on
Performance
Competence
Contribution
Skills
Experience
It is not added
To the BASIC
PAY
VARIABLE PAY CAN BE IN VARIOUS
FORMS
• Individual performance based
Bonuses
• Reward for successful performance
Incentives
• Payment linked with the achievement of
previously set targets which are designed to
motivate employees. Based on output like sales.
Commission
• A special form of incentive in which the
employee is paid some margin of profit he earns
for the organization.
Allowances
• Elements of pay in form of a separate sum of
money for
▫ Overtime
▫ Shift working
▫ Call outs
Other forms of pay
• Service related pay
• Competence related pay
• Contribution related pay
• Skill based pay
• Career development pay
TOTAL REMUNERATION
• All cash payments and benefits received by
employee
NON FINANCIAL REWARDS
• Include any reward which focus on need of
people for
▫ Achievement
▫ Recognition
▫ Responsibility
▫ Personal growth
TOTAL REWARDS SYSTEM
• All the employers available tool that may be used
to
▫ attract
▫ retain
▫ motivate
▫ satisfy employee
is TOTAL REWARD SYSTEM
WHY TO GIVE REWARDS…?
REWARD SYSTEM IN
GENPACT
• Rewards based on performance.
• Rewards based on punctuality.
• Cheers points
• Weekly awards
• Special rewards
Cheers points
• Extra responsibility
• Recognition for Lean Idea
• Weekly Awards
• Special Purpose Rewards

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