REWARD MANAGEMENT IN BUSINESS

Eglė Skrebytė IVKbns03-1

CONTENT Introduction Reward incentives Monetary incentive Non-monetary incentive Example References

INTRODUCTIONReward management is about the design, implementation*, maintenance**, communication and evolution of reward processes which help organizations to improve performance and achieve their objectives.

*Implementation – performance**Maintenance - supervision, care

Reward management involves the analysis and effective control of employee remuneration* and covers salary and all benefits.

*Remuneration - salary, compensation, pay, wage

Every company needs a strategic reward system for employees that addresses four areas: compensation, benefits, recognition and appreciation.

REWARD INCENTIVESWorkplace motivators include both monetary and non-monetary incentives*, which combined can be the main reason, why employees choose one or another employer. Also, through reward incentives employers can achieve that employees accomplish company objectives.

*Incentive - stimulant

MONETARY INCENTIVEThe purpose of monetary incentives is to reward associates for excellent job performance through money. Monetary incentives include profit sharing, project bonuses, stock options and warrants, scheduled bonuses (e.g., Christmas and performance-linked), additional paid vacation time, bonuses for extra working hours.

Also, one example of monetary incentives is mutual funds provided through company pension plans or insurance programs.

NON-MONETARY INCENTIVEThe purpose of non-monetary incentives is to reward associates for excellent job performance through opportunities. Non-monetary incentives include flexible work hours, training, pleasant work environment, and sabbaticals.

Also, they include extra vacation day, parking spot, a “day pass” , flexible working hours, outdoors activities, relaxation room, catering.

5* THE RED CARNATION COLLECTION

Pension Scheme; Private health care; Dry cleaning; Travel card loan; Meals on duty; 2 for 1 theatre tickets; 20 days holiday per year rising to 22 days after

3 years service and to 25 days after 5 years;

Unrivalled training and development; Career and development programs; Promotion from within; Long service awards; Annual Staff Appreciation Party; Action packed social events - free and

subsidized; Outstanding monthly awards and

celebrations for the employee who stands out from their fellow team mates;

CONCLUSIONReward management is one of the most important things in any business because it motivates the employees to do their job as perfect as they can and because of it customers are happy and they will be loyal to that company. Reward management should be one of the priorities of the authorities of the company.

REFERENCES Article „The Best Ways to Reward Employees“

[looked at 2013 november 15] : <http://www.entrepreneur.com/article/75340>;

Article „ Issues and Trends in Reward Management“ [looked at 2013 november 15] : <http://peoplecyclotron.wordpress.com/articles/issues-and-trends-in-reward-management/>;

Article „ The Role of Monetary and Non-Monetary Incentives in the Workplace“ [looked at 2013 november 15] : < http://edis.ifas.ufl.edu/hr016>.