Types, issues, pro, cons etc

incentives,leave policies, benefits

periodical review of salaries & benefits
dearness allowances
satisfaction
is salary commensurate with efforts put in for the job
First, financial rewards (e.g. base pay, bonuses) derive
their motivating potential from their instrumental value: money can be exchanged
for desired
goods and services. Second, material rewards or benefits (e.g. training opportun
ity, health
insurance) are considered as tangible rewards without necessarily benefiting the
employees in
a monetary way, although having a monetary value. Third, psychological rewards (
e.g.
recognition from supervisor, compliment from a colleague) do not imply a monetar
y cost for
the organisation; instead, they are positively evaluated outcomes of the exchang
e relationship
between an employee and his/her supervisor, colleagues or clients (De Gieter et
al., 2008).
How reward satisfaction affects employees turnover intentions and performance: an
individual differences approach,
Sara De Gieter and Joeri Hofmans, Human Resource Management Journal, Vol 25, no
2, 2015, pages 200 216

Many companies realize that the best people

with the most important skills work for more
than just pay. The best people work for companies with a compelling future to offer, plus the
chance to grow as individuals, a place that offers
a positive work experience and total pay including base pay, benefits, incentives and recognition. To create an effective reward system,
companies need to understand where their
reward dollars are being allocated. The companies that do the best job of linking rewards to

business results and employee performance to

attract and retain the best workers will be the
ones best positioned for future success.
This article views the total-reward system
from six dimensions: basis, method, function,
frequency, object and design. Each dimension
has obvious trends and transitions because of the
rapidly changing environment. Exhibit 3 summarizes the conclusions of this article.
According to Miles and Snow9
differ from one another by the business strategies
they pursue. Organizations may be prospectors
or defenders depending on their business strategies. For organizations to perform successfully,
the business strategy, organizational structure
and reward system must align with one another.
Organizations are looking for ways to achieve
more than their competitors in terms of the value
they retrieve from pay and reward dollars. The
best executives are not merely copying the practices of others. Rather, they are looking at practices at other companies and determining how
effective or ineffective those practices would be.
For human-resource managers, developing and
executing a practical total-reward system that
adds value to the business is a critical issue.
Key Trends of the Total Reward
System in the 21st Century, Hai-Ming Chen,
, organizations