Designing a rewards system
March 20, 2015
When creating a rewards system for employees, it is vital to understand the rewards system itself. A rewards system must be offered by managers that understand how effectiveness is to be achieved and what its employees consider to be the important factors in determining the quality of work life.
There are four necessary reward system properties; basic needs satisfied, competitive benefits, equitable distribution, and employees treated as individuals. To ensure basic needs are being met the company must offer competitive pay scales, as money is the biggest motivator to every employee. Basic needs are ...view middle of the document...
By offering individualized rewards, this will help achieve a well-working rewards system.
When developing a rewards system, management must know the nine major factors of motivation. These factors include:
2. Good pay
3. The chance to turn out quality work
4. Chance for promotion
5. The opportunity to do interesting work
6. The feeling that my job is important
7. Being told by my boss when I do a good job
8. The opportunity for self-development and improvement
9. Having a large amount of freedom on the job
Respect is a value that needs to be felt by each employee. An employer can show respect with simple, yet powerful actions. Treating people with courtesy, politeness, and kindness goes a long way. Listening to what employees have to say also shows respect. When developing new ideas as employees' opinions, and if you use their ideas praise them for using it. To be respected, one must show respect. "Treat others as you wish to be treated".
Employees want good pay. A company must know what salaries are competitive for each employee's position. Salaries will be based on education, reputation in the field, experience, and competitive salaries. Competitive salaries are an average pay scale for a certain position throughout multiple companies. A company that wants to hire, and retain a good employee must meet, or exceed competitive wages.
For an employee, the opportunity to turn out quality work is very important. If an employee feels they are not given this chance, they may feel unneeded or even unproductive. Employers must give each employee every chance to produce work that is not only required, but needed.
The chance for promotions is very important to an employee. This motivates them to do an exceptional job in their position, as well as learn the company as a whole. With the chance of a promotion, the employee will be motivated so they can earn a better salary and a different position. Employees that have chances for promotions do not feel as if they are in a dead-end job. They will not feel the "glass ceiling" effect.
Opportunities to do interesting work is motivational because an employee will not feel bored at work. Feeling bored, or useless at work can cause demotivation. If a company has positions where the job is uninteresting a plan shall be implemented to rotate jobs on a recurring basis. An employer should "change things up" if necessary. If employees get bored, or uninterested, they will start to dislike the job.
An employee that feels their job is unimportant will get unmotivated to do it well. If an employee shows signs of feeling unimportant, a manager must meet with them and explain why the job is important. Knowing why a job is important is vital for the employee to feel needed in the company. Also, make sure the employee knows about the rewards system that is in place.
Being told by the boss that an employee is doing a good...