Various Kinds of Rewards in an Organization
An organization carries out reward management program so that it recognizes it's high performing and deserving employees and also provide them with a motivation to perform even better. There are various ways by which a company can do this.
Extrinsic rewards: These are the concrete and clear rewards that an individual is rewarded with. These include bonuses which are generally offered as additional payments annually to reward their performance for the year. There are also salary raise or hikes that are provided to appreciate the high performance. Similarly there are promotions which are done basis merit and readiness . Then in short team some companies also provide gifts which work as token of appreciation for employees.
Intrinsic rewards: These are the kind of rewards that aim to provide an internal satisfaction to the employees. One such reward is the information or the feedback which is provided to keep employees informed of what is going well and keep them on track by adding some guidance. Some employers recognize their employees by a shout out to verbal note of appreciation. While others choose to empower their team and delegate them the tasks.
Though there are different ways to reward an individual or a team however we need to be mindful that we understand the stage at which the employee is and what reward will make a difference to him. BookMyEssay helps its students with the reward management case study writings at the best and reasonable prices.
Why Reward Management is Important for Company?
- Employees’ retention: One of the biggest and common reasons for organization to have reward management is that they want to retain talent. They do not want their high performance employees to leave them and go join their competitors . Hence to keep those employees happy there is a need to have a well structured reward management system.
- Attracting new talent: Lot of employees infect all employees ask for company feedback from the employed personnel when they intend to look out for a job and want to join another company. To ensure there is a positive word of mouth when asked about company reward system , the management ensures the current employee are rewarded properly.
- Saves costs: If the employees will not be happy and will leave the company then there will be fresh hiring plus training . This will give not only monetary costs to company but also lot of other troubles in terms of work assignment till new employees are trained.
- Creates healthy and positive energy: A company that rewards right will always have an environment of trust and positivity at work. This will only promote healthy working relations and high performance.
- Strengthens company ability and reputation: When employees work together in a positive way and in a universal direction then there will be success ,more opportunities to grow thus helping company do better and have a great market reputation.