Among the most substantial practices of business management is the rewarding practice. Reward management or practice focuses on the policies, processes, and strategies necessitated to safeguard that people’s contribution to a firm is acknowledged by both non-financial and financial means. It concerns the maintenance, design, and implementation of reward practices, processes, and procedures that focus on reaching the requirements of both the firm as well as its shareholders. Reward practice focuses on more than just employee benefits and pay. It is similarly focused on non-monetary rewards like opportunities for development and learning, recognition, and increased job accountability. This practice is proven to increase performance and productivity for both the employees and the firm as a whole.
Today, companies are displaying a high extent of commitment to reward practices reinforcement which is aligned with additional practices of human resources and the organization’s goals for motivating, attracting, and retaining workers. Reward practices that are efficient assist in attracting experts that are results-driven, who can succeed and thrive in performance-founded settings. Therefore, it is considered a critical motivator in contemporary firms and might add to employee productivity if appropriately implemented.
The reward practice was developed on the foundation of the behavior research of psychologists. Psychologists have begun researching conduct in the primary 1900s; Sigmund Freud was among the first psychologist who researched behavior with his texts, ‘Psychoanalytic Theory.’ Numerous other conduct psychologists added and improved on Freud’s work. With the enhancement in the behavioral theories and research, psychologists began researching how individuals responded to rewards and what enthused them to execute their duties, and for this reason, psychologists began developing the theories of motivation which are greatly linked with the management of rewards. It was discovered that to have a system of efficient reward, workers must understand precisely what their job is, have the competency to execute it, have the essential work and motivation in a setting permitting the change of envisioned actions into the actual conduct (Brown, 2018). In the insight of a company, however, an effective appraisal of performance has to be available to allow motivation to be a key contributor to the performance rewarded.
The reward practices in business are not just a management fashion or a fad. This is because employee recognition and reward practices are a priceless means of acquiring the most out of the employees. They not only develop long-term impacts but are also cheap to execute and lead to fewer disruptions to a company’s operations yet they can develop numerous benefits for employees and their companies, enhancing profitability and productivity while minimizing costly turnover of employees (Kessler, 2018). For instance, they can aid in perpetuating an organizational culture that one can be satisfied with. The practices of employee recognition can safeguard that workers feel valued by both their colleagues and the management, showing that their achievements are valued and recognized. These practices also aid workers feel engaged and offer them a feeling of belonging. Schemes of employee recognition utilize peer-to-peer and manager top peer recognition that assists workers to feel that they fit in. this can aid them in feeling more involved in their tasks and embrace more pride in it. Moreover, reward practices incentivize collaboration and teamwork. Recognition and reward programs motivate workers. In addition to motivating workers, they can be utilized to bring departments and teams closer. They can influence recognition to safeguard employees that their involvement in the accomplishments of the team is celebrated and appreciated by all. Moreover, they make an organization more appealing to aspiring job hunters. Workers’ rewards can be tremendously attractive to the ambitious top-tier workers who can aid in leading an organization to new success heights. The practices of reward management also help in employee retention. The programs of recognition not only assist workers to work with determination but also embrace pride in their performances which is linked to minimized worker turnover. Organizations that utilize the programs of employee recognition enjoy a 31 percent drop in ‘voluntary turnover.’ Workers retention saves the funds of an organization while also offering the continuity of service and quality that the consumers of the organization anticipate. Lastly, implementing a recognition and reward culture can safeguard a more pleasant and cohesive work setting. 50 percent of workers trust that praise, encouragement, and compliments from their manager enhance their relationship while also developing trust.
With the many changes and innovations, reward management of the future might change. As employees become more diverse, remunerations and rewards require to be more individualized. Even though the future might be focusing on a more varied degree of rewards, it’s critical to also focus on the effect of the general proposition of talent value and the general business image as well as its alluringness as a work setting (“future for rewards in a changing world,” 2018). Rewards communicate a lot concerning what an organization values hence must be paralleled with the organization’s policy and strengthen the conducts that will result in victory in addition to alluring the best talent. Organizations in the future are required to be prepared to assess their strategy to rewards with the assistance of tech to comprehend what the workers value and efficiently reward them to maximize appreciation and engagement.
References
Brown, D. (2018). New realism in ‘strategic’ reward management. The Rutledge Companion to Reward Management, 55-71. Doi: 10.4324/9781315231709-8
The future for rewards in a changing world. (2018, September 4). Retrieved from https://www.hrmagazine.co.uk/content/blogs/the-future-for-rewards-in-a-changing-world
Kessler, I. (2018). Reward management in the public services. The Rutledge Companion to Reward Management, 319-330. Doi: 10.4324/9781315231709-33
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