The Significance Of The Employee Reward Programs’ Existenceby Mary Wu marywu
There is no doubt that money is the oldest and universal mechanism of motivation for work. However, it is not the only, sufficient motivator. The basic assumption of success of different concepts, techniques and approaches to employee motivation is the existence of the employee reward programs. The programs are financial or non-material programs designed to reward and motivate the successful employees.
Technically, the employee reward programs are the permanent functions of human resources management in order to achieve the goals of the business plan and organization as a whole. From the moment of entering into the organization until leaving it, each employee is subject to evaluation of his / her psychological and working abilities. Therefore, the employee reward program includes money, goods or services that the employer gives to the employees in return for their invested work. There is an exchange relationship between the employees and the employer. The employees offer the desired behavior in exchange for money. The goal of rewarding the employees is precisely the adjustment of the individual interests of the employees and the strategic goals of the company.
There are a few types of the employee reward programs. The most important awarding instruments are the material and the non-material rewards. The most important material prize and direct form of earnings is money. Other employee reward programs include free food, free use of the company's car, paid vacations, free use of gym, swimming pool and other non-material benefits and facilities. Today, companies introduce employee reward programs in forms of promotions, job attractiveness, free educations, seminars and training, travels, contact development, flexible working hours, etc. There are also the more traditional, purely financial categories: stimulation, bonuses, business cards, insurance, loans, participation in realized company profit or entering into partnership with the employer.
By introducing the employee reward programs, the employers are trying to minimize the fixed salary part and introduce a variable part of the salary, most often in the form of rewards, to achieve a better business result. Even for smaller companies, rewarding systems can greatly help with cost management, motivation techniques, and business results.
Created on Sep 18th 2017 22:25. Viewed 273 times.