The Reward System 2

1
The Reward System (2)

• Stimulating employee productivity
• Developing compensation systems
• Understanding non-compensable rewards
• Combine compensable and non-compensable rewards
  to develop an effective compensation strategy

2
Expectations of the Reward System

• Must attract employees to the organization
• Must influence employee motivation productivity
• Must be seen as worth the employees effort to
  attain

3
Compensation System

• Wages and Salary
• In-kind payments
• Benefits- purchased _at_ group discount, government
  mandated

4
Compensation Dimensions

• Pay for work and performance
• Wages, bonuses and awards
• Alignment between job requirements and wage level

5
Compensation Dimensions

• Pay for Time Not Worked
• Loss of Job Income Continuation
• Disability Income Continuation
• Deferred Income
• Spouse (Family) Income Continuation
• Health, Accident Liability Protection
• Income equivalent payments (car, etc)

6
Non-compensation system

• These rewards relate to the work situation and
  impact mental physical emotional well-being
• Enhance Dignity and Satisfaction from Work
  Performed
• Enhance Physiological Health, Intellectual Growth
  and Emotional maturity

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Non-Compensation System

• Promote constructive co-worker relationships
• Design jobs that require adequate attention and
  effort
• Allocate sufficient resources for assignments
• Enable employees to meet personal demands
• Offer Supportive Leadership and Management

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