REWARDS

•Thiscan be defined by providing satisfaction and

gratifying.
•Reward is benefits provided by the employers,
usually money, promotion or benefits and
satisfaction derived from the job.
REWARD SYSTEM
Reward System
It consists of all organizational components
involved in allocate compensation and benefits
to employees in exchange for their
contribution to the organization including:
• People
• Processes
• Rules
• Procedures
• Decision-making activities
 
STRATEGIC REWARD SYSTEM
FOR EMPLOYEES
 Compensation - a systematic approach to providing
monetary value to employees in exchange for work
performed
 
 Benefit - include various types of non-wage compensation
provided to employees in addition to their normal wages or
salaries
 
 Recognition - means acknowledging someone before their
peers for specific accomplishments achieved, actions taken
or attitudes exemplified through their behavior
 
 Appreciation - centers on expressing gratitude to someone
for his or her actions.
REWARD’S PURPOSE AND ROLES

Purpose: To attract, retain, and motivate

qualified employees

Roles of Compensation Structures

 To be equitable and consistent
 To be a fair reward for the individual’s
contribution
 To be competitive in the external labor
market
Incentive
 Base Pay
 Performance Rewards -

 
 Profit Sharing 
 
Non-Incentive
 Seniority Pay  
 Overtime

 
 Vacation Pay
EXTRINSIC AND INTRINSIC REWARDS

Extrinsic Rewards
 These are the physical ones that come from an
external source (employers) only. A properly
designed extrinsic reward can also be emotionally
attached with the employees as employees value
such rewards.
 An extrinsic reward is also directly related to job
performance of the employees but it is necessary
that employees receive reward every time they
accomplish the task. It depends upon the policy of
the company.
TYPES OF EXTRINSIC REWARDS
 Pay

 Bonus or commission
 Fringe benefits

 Improved working condition

 Promotion

 Profit sharing