reward system
Reward Systems
Once of a manager’s most important tools is the ability to select rewards and time the rewards properly. Even if managers are not solely responsible for financial rewards, they can use a number of tools to increase the effectiveness of their organization. Reward systems can address several important managerial objectives as they relate to employee motivation. A solid reward system requires concerted attention in its development. The following sections provide a basis for a well-contructed reward system.
Purposes of Reward Systems
Reward systems serve several purposes in organizations. Effective reward systems help an organization be more competitive, retain key employees, and reduce turnover. Reward systems also can enhance employee motivation and reinforce the image of an organization among key stakeholders or future employees.
People are the most important resource for organizational competitiveness, and keeping them on the job is a key task for any manager. Competition to attract and keep the best employees is intense. For people looking for a career opportunity, that’s great news, but as a manager of an organization needing to keep the best and brightest, it is a challenge. It may be even harder in the nonprofit and public sectors where flexibility in providing financial rewards may be more limited than in a commercial context. Retaining employees saves money on retraining costs, improves the consistency of services, and allows for relationships to develop between clients and the organization. In addition, proper rewards systems can reduce absences. Absences cause innumerable headaches for managers. Instructors who don’t show up, too few staff members at busy times, and the lack of a cleanup crew can all increase workplace stress. Absences not only affect the manager but also fellow employees who need to pick up the slack and clients who feel the brunt of too few employees on site.
As suggested earlier, understanding who, what, and when to
Once of a manager’s most important tools is the ability to select rewards and time the rewards properly. Even if managers are not solely responsible for financial rewards, they can use a number of tools to increase the effectiveness of their organization. Reward systems can address several important managerial objectives as they relate to employee motivation. A solid reward system requires concerted attention in its development. The following sections provide a basis for a well-contructed reward system.
Purposes of Reward Systems
Reward systems serve several purposes in organizations. Effective reward systems help an organization be more competitive, retain key employees, and reduce turnover. Reward systems also can enhance employee motivation and reinforce the image of an organization among key stakeholders or future employees.
People are the most important resource for organizational competitiveness, and keeping them on the job is a key task for any manager. Competition to attract and keep the best employees is intense. For people looking for a career opportunity, that’s great news, but as a manager of an organization needing to keep the best and brightest, it is a challenge. It may be even harder in the nonprofit and public sectors where flexibility in providing financial rewards may be more limited than in a commercial context. Retaining employees saves money on retraining costs, improves the consistency of services, and allows for relationships to develop between clients and the organization. In addition, proper rewards systems can reduce absences. Absences cause innumerable headaches for managers. Instructors who don’t show up, too few staff members at busy times, and the lack of a cleanup crew can all increase workplace stress. Absences not only affect the manager but also fellow employees who need to pick up the slack and clients who feel the brunt of too few employees on site.
As suggested earlier, understanding who, what, and when to