Total Rewards

 

This blogpost I am going to evaluate what is the employee rewarding and which parts it consists. First of all, a salary or other monetary compensation is very important motivator for the workers that the get from their work performance. This includes three elements which are base compensation; meaning fixed pay that the worker gets on a regular basis for example salary. The second element is pay incentives which are some kinds of a program that reward employees for the good performance, like bonuses in every six month or so. The last element is benefits that holds health insurance, vacation, lunch benefit etc. This is also important part for the employees and might motivate them to keep longer in the company if the benefits are good. Every company has their own compensation plan, and they have to design it carefully by taking into consideration for example do they highlight more non-monetary or monetary rewards. Some of the employees value more the non-monetary rewards, like health insurance because many countries this can be very expensive and people can’t afford it (Mejia Gomez, 2016.) 

 


Usually companies are using job-based approaches for compensation, which means that for example years spent in that company will raise the salary. Sometimes they can also use skill-based compensation and negotiates the salary with the person if they have some skills that are very valuable for that specific job. 

 

Sophia Beirne listed a few good tips how employers can make their employees to feel valuable in the organization. These tips were more intangible because of course everyone appreciates salary raise but also these really matters. Gaining more responsibility is one effective thing to motivate and show your staff that their work input has been noticed. Flexibility was also one worth to mention because when the employee has the feeling that supervisor has seen that they have done longer day here and there and give them the opportunity to take the day off sometimes it has a good impact for the future. Small events on behalf of the employer have been successful and employees have felt gratitude that e.g., their birthdays or anniversaries are noticed (Sophia Beirne, 2015.)




 

Company’s often have pay-for-performance rewards when people are really performing well in the company. Executives for example get their incentives or bonuses every year so that it motivates them in decision-making and that company will succeed in the future. This can also happen in the employee side; I am actually working in the company who will reward their employees’ if they will meet the target goals every half a year. That motivates people to try their best and get credits from the employer because it can lead to different work position in the future as well. 

 

References:

 

Beirne, S. 2015. 7 Effective Ways to Reward Your Employees. Zippia. The Career Expert. URL; https://www.zippia.com/employer/7-effective-ways-to-reward-your-employees/


Gómez, M., L.R., Balkin, D.B and Carby, R.L 2016. Managing Human Resources. Eighth Edition. Pearson. Chapters: 10 & 11

 

My own experiences of Total Rewarding in the Workplace. 

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