Employee rewards and management Essay Example | Topics and Well Written Essays - 1500 words

Employee rewards and management - Essay Example Having a well-motivated workforce may be equivalent to better work productivity and success in product salability in the market. Additional advantages are lower level of absenteeism and staff turnovers because the employees are satisfied with their work. This also means that training and recruitment costs are lowered because work positions are always reliably staffed (Dawson, 2009). In motivating and retaining good employees, it is important for management to establish a reward system to ensure that good performance is sustained. The Total Reward system is â€Å"the monetary and nonmonetary return provided to employees in exchange for their time, talents, efforts and results† (Christofferson and King, 2006). Total rewards involves the deliberate integration of key elements such as pay, benefits, learning and development and work environment (Brown, 2001) which all effectively attract, retain and motivate the talent required to achieve desired business results. In addition to t hese elements, Christofferson & King (2006) have added the elements of development and career opportunities which may be equivalent to Brown’s (2001) learning and development; performance and recognition and work-life balance which both belong under the work environment key of Brown’s (2001) framework. Figure 1. Christofferson & King’s Total Rewards Framework Key Elements: Pay The monetary component of the Total Rewards System which includes Base Pay, Annual Bonuses, Long term incentives, Shares and Profit sharing may serve as the most concrete reward an employee can hold, and is the most practical to use to meet his daily needs over time. Research has shown that pay satisfaction and the need for career growth are two of the most important predictors of job satisfaction (Gyanmudra and Vijaykumar, 2007). Individuals who are satisfied with the pay they get and the opportunities for professional advancement find that the costs of leaving their jobs would be greater so they develop positive attitudes towards their jobs and appreciate it for what it gives them. Benefits Receiving benefits such as pension, holidays, perks & flexibility of time may make an employee feel more accepted as part of the organization. Usually, it takes time before one can enjoy such benefits, and having proved oneself worth of such is adequately rewarded. Learning and Development Learning and development opportunities such as training, on the job learning, performance management, career development and succession planning may yield more long-term outcomes for both the employee and the organization. It increases the market value of the employee as he gets regularly updated about current trends in the business and be actively involved in contributing to its growth. Brown & Hunning (2010) claim if an employee adopts a learning goal orientation, he focuses on improving his abilities; a he is likely to have job satisfaction even if he is not intrinsically motivated. This is because of his intrinsic desire for the job due to the learning it brings him. Work Environment The work environment should also bring about rewards for the employee. This includes the organisation culture leadership, communications, involvement, worklife balance and non financial recognition. Maintaining positive work environments means having positive working