The concept of reward management does not simply refer to the payroll function. It covers the formulation and implementation of the strategies as well as the practice of pay system.
Reward, of which can be in terms of monetary or non-monetary, is the key factor to attract or retain talents and to motivate employees to become good performers. Undoubtedly, positive recognition for people facilitates better morale and performance among employees, which in return leads to high productivity for the organisation. Nevertheless, it is a sensitive and controversial issue which every organisation or employer has to handle it with caution.
An equitable, market-based and cost-effective reward management system should be developed in order to acknowledge an individual or team with accomplishments. A structured reward management system helps building a high-performance culture for an organisation where its employees are linked up to work together towards the business goals and objectives. Apart from establishing a reward management system with justice, it is also essential for the organisation or employers to maintain clear and close communication with employees on the reward policies.
In general, “Reward Management” covers various aspects including:
- Total Reward
- Job analysis and job evaluation
- Base pay
- Pay for performance
- Mergers & acquisitions
- Payroll administration
- International reward management
- Reward communication
- Performance management