REWARD SYSTEM

Prepared by:Rupender SharmaPushpanjaliSagar sirohiSanchita sharma

WHAT IS A REWARD…..

USED BEFORE THIS HAPPENS……

WHAT IS A REWARD SYSTEM?•An employee reward system consists of an

organizations integrated :▫Policies▫Processes▫Practices

• For rewarding its employees in accordance to their • Skills• Competence• Market worth

REWARD STRATEGY•All the employee's available tool that may

be used to ▫attract▫retain▫motivate ▫satisfy employee

•It links company’s▫strategy▫pay system ▫employee behavior

COMPONENTS OF TOTAL REWARD SYSTEM•Financial Rewards•Employees Benefits (Total Remuneration)•Non Financial Rewards( Recognition,

praise, achievement)•Performance management and personal

growth processes.

OBJECTIVES OF REWARDS-ORGANISATION POINT OF VIEW•To drive desired behavior in employees.•To attract, retain and motivate high

quality people.•To communicate organization values.•Encourage behaviors that will contribute

to achievement of organization objective.•Support quality, customer care, team

work and innovation.

OBJECTIVES OF REWARDS-EMPLOYEES POINT OF VIEW•Treat them as stake holders•To meet their expectations that they will

be treated with equality, fairly and consistently.

BUSINESS STRATEGY

HR STRATEGYHR STRATEGY

REWARD STRATEGY

PERFORMANCE MANAGEMENT

FINANCIAL REWARDSNON FINANCIAL

REWARDS

FINANCIAL REWARDS

PERFORMANCE MGMT

NON FINANCIAL REWARDS

BASIC PAY

EMPLOYEE BENEFITS

VARIABLE PAY

BONUS

ALLOWANCES

INCENTIVES

RESPONSIBILITY

ACHIEVEMENT

RECOGNITION

TOTAL REMUNERATION

TOTAL REWARD SYSTEM

FINANCIAL REWARDS

Any reward which is paid in terms of money It includes• Basic pay• Employee benefits• Variable pay

BASIC PAY

•Fixed salary or wage that constitute the rate for the job.

It can be•Annual•Monthly•Weekly•hourly

EMPLOYEE BENEFITSThese are pay which are given indirectly in

the form of•Pensions•Sick pay•Insurance cover•Company car•Mobile phone

VARIABLE PAY/ CONTINGENT PAYAdditional financial rewards that are based

on Performance Competence Contribution Skills ExperienceIt is not added To the BASIC PAY

VARIABLE PAY CAN BE IN VARIOUS FORMS•Individual performance based

Bonuses

•Reward for successful performance

Incentives

•Payment linked with the achievement of previously set targets which are designed to motivate employees. Based on output like sales.

Commission

• A special form of incentive in which the employee is paid some margin of profit he earns for the organization.

Allowances

•Elements of pay in form of a separate sum of money for ▫Overtime▫Shift working ▫Call outs

Other forms of pay

•Service related pay•Competence related pay•Contribution related pay•Skill based pay•Career development pay

TOTAL REMUNERATION

•All cash payments and benefits received by employee

NON FINANCIAL REWARDS

•Include any reward which focus on need of people for▫Achievement▫Recognition▫Responsibility▫Personal growth

TOTAL REWARDS SYSTEM

•All the employers available tool that may be used to ▫attract ▫retain ▫motivate ▫ satisfy employee is TOTAL REWARD SYSTEM

WHY TO GIVE REWARDS…?

REWARD SYSTEM IN GENPACT

•Rewards based on performance.•Rewards based on punctuality.•Cheers points •Weekly awards•Special rewards

Cheers points

•Extra responsibility•Recognition for Lean Idea•Weekly Awards•Special Purpose Rewards