Reward Management

Balancing Reward Strategy

Financial Non Financial

Components of Total Rewards

Financial Rewards and Benefits Base Pay Contingent Pay ( for Performance or Contribution) Variable Pay (Cash bonuses) Share ownership Benefits

Non Financial Rewards Recognition Responsibility Meaningful Work These arising from the work and work environment

itself Autonomy Opportunity to use and develop skills Career Opportunities Work Life Balances

Factors Affecting Levels of Pay

Factors Influencing Job Values Intrinsic Values Internal Organization Relativities. External Job Market Relativities. Inflation and Market movement Business or Financial circumstances

Rewards As Motivator

In any work environment Rewards (both Financial and Non Financial) can act as a motivator.

Financial rewards: Effectiveness of money as a motivator. Reasons why people are satisfied or dissatisfied with their

rewards. Criteria which should be used when developing a financial

reward system.Non Financial rewards:

Can be focused on the needs most people have although to different degrees for achievement, recognition, responsibility, influence and personal growth.

Reward Policies for New & genuine Start Ups

Where to start: Attract and keep people anxious to make organization grow and

flourish. Reward the risk of coming into a new venture with high rewards

and generally a share in the business if the risk pays off. Provide a sensible basic salary that is reasonably competitive with

the market for most staff and highly competitive if rare skills have to be brought in.

Lock people to give business stability- with share schemes or profit sharing for everyone.

Make a LEAN organization until some “FAT” comes in the systems. Payout bonuses or provide non-cash rewards when key

milestones in the business plan are successfully achieved. Improve on office culture and ambience.

Diagnostic Check list

Is there a clear and articulated link between reward strategies and HR strategy on: Organization design. Recruitment : a reasonable attractive total package. Training: rewarding skills acquisition and use. Development: rewarding the behaviors or competencies

associated with good performance and continued learning. Performance Improvement. Effective team/group working. Promotion: rewarding the acceptance and successful

delivery of greater responsibilities. Reinforcing loyalty, integrity and commitment

Diagnostic Check list

Is there a strategy for ongoing reward management which :

A. is based on organization’s: Mission and values. Culture. Current and future needs.

B. Staff at all levels understand, at least in outline and believes to be fair and rational.

C. Provides for a flexible response when different parts of the organization have different needs or face different pressures.

Diagnostic Check list

What is the policy on levels of rewards, A) the chosen place in a well- defined, surveyed and comparable

pay market for different grades, levels and specialisms. B) the need to attract and retain high quality staff. C) the need for stability and sustained staff commitment?

Is there a consistent method of progression pay, according to:

A) length of service. B) experience (how is this assessed?) C) performance or contribution D) competency acquisition and use; F) skill?

CONTACT:NILESH KUMAR

+91-997181-1300NILESHKUMAR25@GMAIL .COM

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