REWARD SYSTEM

PRESENTED BY
AmMAR
ANKUR
Reward Systems consist of
the following elements:
 Financial Rewards – Compensation
 1. Base Salary
 2. Pay Incentives
 3. Employee Benefits
Non-financial Rewards

 1. Intrinsic Rewards – centers on the work itself

 2. Praise, recognition, time off and other rewards
given to the employee by peers or superiors.

Objective of RS
Reward Systems in most cases should be
consistent with other HR systems.
The Reward System is a key driver of:

HR Strategy
Business Strategy
Organization Culture

SHOULD ENCOURAGE
WORKERS TO:
JOIN AND REMAIN WITH THE ORGANIZATION
 Attraction & Membership
 Loyalty & Longevity


PERFORM THEIR JOBS EFFECTIVELY

 Attendance and Required Behavior
 Accomplish Specific Results
 Do What is Expected


ENGAGE IN SPONTANEOUS, INNOVATIVE BEHAVIOR

ON BEHALF OF THE FIRM
 Put Themselves Out by “Going the 2nd
Mile”
 Demonstrate Committed “We Care”
Behavior
 Doing the Unexpected, But Highly
Appreciated
EXTERNAL INFLUENCES ON
REWARD SYSTEM

 Supply of Labor Demand for Labor

Org Location Economic State
Competition Union Influence
 Product/Service Demand

Internal Influences on
Compensation
 Organization Size Willingness to Pay
 Ability to Pay Tradition
 Unionization Job Itself
 Employer Prestige

 Work Force Character

 Desired Employee Quality
 Ratio of Labor Costs to Total Costs
 Strategic Reward Systems
Need for Consistency with Other HR Systems
Skill-based pay

Tra in in g C u ltu re
Overtime
pay rules
in
contract Merit pay
reinforces
Rewards performance
culture
La b o r R e la tio n s

Pe rfo rm a n ce M a n a g e m e n t

Sign-on Bonus E m p lo ym e n t
Merit Pay
Conclusion
Thank you