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Reward

Strategies
Saima Aftab
&
Kashif Amin Butt
Rewards
Saying ‘thank you’ for a job well
done, and thereby motivating the
recipient to continue to do those
things that benefit the organization
Rewards

Extrinsic Intrinsic

•Responsibility
Non- •Interesting work
Financial •Personal growth
Financial •Diversity of
activities
1: EXTRINSIC FINANCIAL
REWARDS

• Wages
• Bonuses
• Profit-sharing
• Vacations
• Sick leave
• Purchase discounts
2. EXTRINSIC NON-
FINANCIAL REWARDS
• Office furnishings
• Lunch hours
• Parking spaces
• Work assignments,
locations
• Business cards
• Secretary
• Titles
LAWLER’S MODEL OF REWARD
STRATEGY
RESOURCES

INDIVIDUAL &
ORGANIZATION REWARD
CORPORATE ORGANIZATIONAL
DESIGN SYSTEM BEHAVIUOR
GOALS & &MANAGEMENT
OBJECTIVES STYLE

ENVIRONMENT

Reward system – An important means of


communication
RELATIONSHIP BETWEEN HR & REWARD
PRACTICES & BUSINESS PERFORMANCE

JOB
SATISFACTION

EMPLOYEE BUSINESS
INVOLVEMENT / PERFORMANCE
COMMUNICATION

HR PRACTICES
DYNAMIC REWARD STRATEGIES

RESPONSIBLE, DYNAMIC AND DYNAMIC REWARD


FLEXIBLE HR STRATEGIES
PROFESSIONALS
ALIGNING REWARD SYSTEM
WITH STRATEGY

BUSINESS
STRATEGY

PEOPLE
REQUIREMENT

PREVIOUS
REWARD
METHODS

CHANGES
TO
REWARDS
EFFECTIVE REWARD STRATEGY

EFFECTIVE
REWARD
STRATEGY

WELL WELL DESIGNED EFFECTIVE &


DEFINED PAY & REWARD SUPPORTIVE
GOALS & PROGRAMMES HR
OBJECTIVES ACCORDING TO THE
NEEDS
BALANCED, PRACTICAL REWARD
STRATEGY MODEL
EMPLOYER’S EMPLOYEE’S
PERSPECTIVE PERSPECTIVE

ORGANIZATION COMPETENCIES
CAPABILITIES
BUSINESS EMPLOYMENT
DEAL DEMOGRAPHICS
STRATEGY
ORGANIZATION
STRUCTURE VALUES
TOTAL REWARD STRATEGY

PAY BENEFITS

LEARNING & WORK


DEVELOPMENT ENVIRONMENT

IMPOROVED BUSINESS RESULTS & ALIGNED EMPLOYEE BEHAVIOURS


CONFLICTS

• Focus on individual performance in


teams
• Lack of customer service rewards
• Lack of relationship between pay &
performance
• Absence of learning and development
• Pay levels and benefits entitlement
strongly related to the length of service
• Lack of variable portion in pay
PERFORMANCE RELATED PAY

• Score card driven bonus


– Customer satisfaction (customer
survey)
– Shareholder returns (profitability vs.
targets)
– Process excellence
– Learn ‘n’ Grow