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Human Resource Management – Reward Policies

The Purpose of Reward Policies

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Reward policies set specific guidelines for decision making and action, which are also communicated to the employees. They indicate what the organization and its management is expected to do for managing reward and how they will behave in given circumstances when dealing with reward issue.

Reward policies deal with:

  1. the level of rewards;
  2. the relative importance attached to external competitiveness and internal
  3. Equity of the organization.
  4. the use of job evaluation;
  5. achieving equal pay;
  6. the approach to total reward;
  7. the scope for the use of contingent rewards related to performance,
  8. the role of line managers;
  9. transparency – the information on reward structures and processes to employees;
  10. the assimilation of employees into new pay structures;
  11. the protection of the pay of employees affected by new pay structures;
  12. decisions on the rates of pay offered to staff on appointment or promotion.

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