Reward Management
A Practical Introduction
Michael Rose
- English
- ePUB (mobile friendly)
- Available on iOS & Android
Reward Management
A Practical Introduction
Michael Rose
About This Book
Effectively and fairly rewarding employees is a critical component to help build organizational, team and individual performance and success. Reward Management is a practical guide to understanding and implementing successful reward strategies which are aligned with broader HR and organizational objectives. Drawing on case studies, reflective questions and practical tools, it covers key areas including pay and grade structures, job evaluation, pay reviews, bonus plans, non-cash reward, benefits, tax issues and provides the knowledge and skills needed to plan, implement and assess an effective reward strategy in any type of organization.This second edition of Reward Management has been updated to include the latest research and developments, such as the role of recognition and non-cash awards, and the psychological implications relating to financial incentives. New and updated case studies include insight from Marks and Spencer, Which?, The Royal Horticultural Society and Tata Consultancy Services, while supporting online resources include downloadable templates and further tools to be used in practice.The HR Fundamentals are a series of succinct, practical guides for students and those in the early stages of their HR careers. They are endorsed by the Chartered Institute of Personnel and Development (CIPD), the UK professional body for HR and people development, which has over 145,000 members worldwide.
Frequently asked questions
Information
PART ONE
THE FUNDAMENTALS OF REWARD MANAGEMENT
01
Reward and reward strategy
Reward
Definitions
- Reward â which is what this book is about. I will use the word to mean the total of all of the financially valuable related elements received by employees in an organization.
- Remuneration â means the same as ârewardâ. It is commonly used in the context of the âRemuneration Committeeâ, which oversees the remuneration of senior executives and sometimes remuneration policy.
- Compensation â this is commonly used in the US and refers to pay and bonus. In larger US organizations, the two functions of compensation and benefits (referring to pension and healthcare in the US) are often separated.
- Benefits â are the non-cash parts of reward that are provided by the employer either to all employees or differentiated by level.
- Total reward â has started to be used to mean both reward plus a range of other non-reward items such as training and development. I do not think that this is helpful. My preference is to use ârewardâ or âtotal rewardâ interchangeably and use a quite different phrase to capture the other things that in total make up the employee experience, such as the âemployee dealâ.
- Recognition â is also sometimes used as in âReward and Recognitionâ. As I show in Chapter 9, recognition is very different from reward.
- Financial rewards â are all the monetary payments an employee receives. Financial rewards derive their motivating potential from their exchange function: money can be exchanged for desirable outcomes, eg goods and services.
- Material rewards â have an indirect identifiable monetary value, implying a cost for the organization although the employee cannot exchange the reward for its monetary value, eg training opportunities and presents.
- Psychological rewards â are the supportive and positively evaluated outcomes of the professional interpersonal relationships an employee develops with their supervisor, colleagues and/or clients, eg compliments and recognition.
Elements of reward
Basic pay/salary
- senior executives whose reward may incorporate a large potential annual bonus and very significant share plans; and
- sales people or traders whose bonus and commission potential may be much greater than their salary.