Collection Name Item Created Rewards Reward Giftable Type ...
Rewards 11 Reward Systems. Rewards 2 Why do we deal with reward systems? incentives motivation...
-
Upload
russell-todd -
Category
Documents
-
view
212 -
download
0
Transcript of Rewards 11 Reward Systems. Rewards 2 Why do we deal with reward systems? incentives motivation...
Rewards
11
Reward Systems
Rewards
2
Why do we deal with reward systems?
incentives
motivation
business performance
business success
satisfaction
Rewards
3
•wage and salary regulations•profit sharing•company benefits
•personnel development and career opportunities•working hours and break control•work content and place design
Classification of incentive components
Rewards
4
• consistence and support to the corporate targets and strategies
• flexibility while changing of competitive and environmental conditions
• compliance of laws, standards and ethical principles
• consideration of stakeholder interests
General goals of reward systems
Rewards
5
Components of monetary incentive systems
fixed periodic payments salary
situation based fixed and variable payments
premiums, bonus …
indirect fixed periodic payments
health insurance, invalidity pension …
indirect monetary payments company car, mobile phone …
neutral payment components
participation (e.g. equities)
Rewards
6
Overview of wage and salary classes
certain wage rate per time
e.g. bonus for quality, punctuality
single/ group premium
e.g. time-based piece rates
e.g. christmas bonus
Rewards
7
Components of non monetary incentive systems
personnel development and career opportunities
social communication
group membership
cooperative management
working hours and break control
work content design
workplace design
Rewards
8
• flexible payment design employee is able to choose between different payment components
• in return for use of individual selection the employee disclaim a part of his salary
• characteristics:– individualization of payment components according to an specific
budget,– periodically returning option and– an offer with several alternatives
The Cafeteria-Approach
Rewards
9
advantages:• company can win new staff • and increase the connection of
the employees to the enterprise
• annual expenditures for this area are exactly calculable
• increased motivation of staff• through periodically returning
option employee can adopt his changed needs
• his job satisfaction as well as identification with his employer increase
The Cafeteria-Approach
Rewards
10
The Cafeteria-Approach
disadvantages:• in general awarded
achievements are easily considered as natural and expected incentive effects are missed
• some options limited by tax legislation and wage agreements
• good consultation of the employee is also often absent
Rewards
11
Conclusion• Incentives are drivers for motivation
successful performance • It depends on various factors (e.g.)
Company policy Competitive context law and regulations
mixed forms of monetary and non-monetary reward
Rewards
12
Thank you for your attention!!!