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OBJECTIVES OF REWARD MANAGEMENT


OBJECTIVES OF REWARD MANAGEMENT

               Reward management deals with processes, policies and strategies which are required to guarantee that the contribution of employees to the business is recognized by all means. Objective of reward management is to reward employees fairly, equitably and consistently in correlation to the value of these individuals to the organization. Reward system exists in order to motivate employees to work towards achieving strategic goals which are set by entities. Reward management is not only concerned with pay and employee benefits. It is equally concerned with non-financial rewards such as recognition, training, development and increased job responsibility. The following are the important objectives of reward management: 



1. Maintain remuneration and benefits that are competitive in the    industry.

2. Provide tax-effective purchase of insurance and benefits.

3. Create a process based on what the organization values and wants to achieve.

4. Reward people for the value they create.

5. Align reward practices with both organizational goals and employee values.

6. Reward the right things to communicate expected behaviors and outcomes.

7. To reward people according to what the organisation values and wants to pay for.

8. To develop a performance culture.

9. To help to attract and retain and obtain their commitment and engagement.

10. To reward the right things to convey the right message about what is important in terms of behavior and outcomes.

11. Be cost-effective and affordable.

12. Increase the employee’s commitment to an organization, including productivity, work quality, competitiveness.

13. To reward people differently according to their contribution, that is the return on investment they generate.

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