Human Resource Management – Level of rewards
Level of rewards
The policy formed on the level of rewards indicates whether the company is a high payer, is content to pay median or average rates of pay or even, or accepts that it has to pay below the average. Pay policy, which is sometimes referred to as the ‘pay posture’ of a company, will depend on a number of factors with the ongoing strategy. These include the extent to which the company demands high levels of performance from its employees, the degree to which there is competition for good-quality people, the corporate culture, and whether or not it can or should afford to be a high payer.
Rewards are given to the employees by the employers when they perform exceptionally and better than other employees in the organization. The level of rewards may vary from the performance of an employee to the employee. In order to determine the level of rewards to be given to the employees, the performance of the employees is reviewed and measured on the basis of the criteria or the baseline that is established by the management in order to measure the performance of the employees. Rewards are given to the employees when they perform above the standards set by the organization. But the level of rewards to be given to the employees is not the same. One who contributes more towards the growth and development of the employees will be rewarded more as compared to the one who performs comparatively less than the best performer. Rewards are given to the employees in different forms. Rewards can be in the form of acknowledgment, praises, recognition, incentives, bonuses, etc. The level of rewards can vary from organization to organization. Some organizations pay very high to their employees as a part of their salary and reward and often expect a high level of performances from their employees. The expectation of the employers rises as they tend to provide a high level of rewards to their employees which motivates them and boosts their morale to a great extent. Determination of the level of rewards is very important for the organization because if the same level of rewards is being given to all the best performers without considering the level of performance, the employee who performed better than all the other top performers will feel demotivated as there is no difference in the level of rewards given to the employees.