Rewards should justify the performance and not exceed them. Rewards management deals with what are proper and justified rewards and what are disproportionate rewards.
Articles on Rewards Management
This article makes the point that reward systems must be holistic in nature and that too much dependence on immediate bosses for determining rewards is detrimental to the health of organizations. We propose some solutions to how performance management can be based on a set of parameters.
Stock Options are generally considered an appropriate financial measure to incentivize employees. However, this article argues that they alone are not enough because of the reasons discussed here. Companies need to move towards newer compensation and reward models to motivate employees to perform better.
Organizations use a mix of financial and non-financial rewards to motivate employees. Motivation is driven by several factors and hence, the key to motivate employees lies in determining their individual needs and matching the reward systems to these needs.
This article discusses the misaligned incentives that are at the heart of the current reward systems with respect to CEO compensation. Some strategies to tackle this aspect are also discussed.
There are many factors that affect the levels of pay and this article discusses some of them. It must be remembered that organizations have a basket of variables, which they use to fix the pay and hand out bonuses. Apart from that, the growth of the industry is another determinant of the level of pay.
This article discusses the nature of the rewards systems and the characteristics of ideal reward policies. Employees are motivated by both external needs and the internal drive to prove them and fulfill their need for recognition and glory.
The development of the reward systems is a process that involves multiple stakeholders and this article discusses some key stakeholders in the process. Apart from that, this article also examines how non-financial reward systems differ from company to company and how they are developed.
Reward processes have to be evaluated for their effectiveness. Only when organizations know whether their reward processes are effective would there be a reward system that adequately compensates employees for performance.
This article discusses the impact that the ongoing economic crisis has had on rewards management. The key theme in this article is that both the employers and the employees are caught with no choice but to live with the gloomy scenario and only the high performers would stand to gain in this situation.
This article discusses how companies undertake market rate surveys and reward research and lists some examples of companies that follow global best practices. The key theme in this article is that companies must be competitive in terms of the salary offered if they are to attract and retain high quality talent.
This article discusses some aspects of the total rewards management systems that are being practiced in many organizations across the world. The key theme in this article is that total rewards management systems when implemented properly have the potential to transform organizations into world-class entities.
This article examines cutting edge research into rewards systems that has been published in 2013 in the form of a book, Give and Take, by the youngest professor of Wharton, Adam Grant.
Bonuses form an important part of the rewards system in any organization and hence, they must be planned and distributed with due care and concern for the employees. This article discusses the practice of bonuses in some key sectors in contemporary corporate world.
This article examines the issue of differing reward systems for entrepreneurs/owners and managers when compared to the reward systems for employees from multiple perspectives. The key argument being made in this article is that excessive compensation skews the reward systems and creates perverse incentives for the top management to take unwarranted risk that would ultimately destroy the system.
This article explains the concept of Employee Stock Option Plans (ESOPs). It lists down some of the major drawbacks related to ESOPs. The drawbacks are listed from the point of view of the company as well as the employee.
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