Question

human resource management: Explain an organization’s strategic considerations in developing a strategic rewards program.

for a manager and for an employee in a company

Answer 1

A good reward strategy will enable the Organisation to achieve its goals and objectives effectively. A total reward approach looks at what the Organisation is trying to achieve, what the employees want, what is affordable, and the structures needed in place to achieve this. The Organisation should consider the following four areas.

1.Cash Compensation

Every Organisation must pay its employees for the services that they provide (i.e. time, efforts and skills ). This includes both fixed(salary and allowances) and variable(bonus and incentives) pay. The cash compensation provided to employees increases over time and can be linked to a number of different factors such as performance or career development.

2.Benefits

Organisations use benefits to supplement the cash compensation they provide to employees.These vary depending on the size of the Organisation and affordability but can provide security and comfort to the employees and their families. The benefits includes holidays, medical cover,income protection and pension schemes.

3.Personal growth

Providing personal and professional growth opportunities to employees is an essential part of any reward strategy. These can be skills acquired on the job as well as formal training programmes valued by the employees that also serve the Organisation strategic needs.

4. Work environment

A positive work environment can often be the defining factor in retaining key talent in an increasingly competitive market. Ultimately, a manager and an employee want to work in an environment where there is genuine feeling of team spirit and togetherness. It will ensure effective leadership, Positive culture and better work life balance.