REWARDS MANAGEMENT: An Introduction To Rewards Management1

Is your company in search of the most effective strategies to motivate and excite your staff? Let your employees know that they are appreciated and driven. Your employees deserve to be recognised for their hard work. In order to do this, Reward Management incorporates procedures that reward staff members, workers, or employees in a fair, consistent, and equal manner.
It's part of human resource management, which is involved with the implementation and creation of policies or strategies that aim to reward employees in accordance with their performance and value to the firm. Reward and Compensation Management
Reward & Compensations = Motivated Manpower
Rewards to motivate
It's a good practise for organisations to recognise their staff for success and achievement by using reward management. In order to achieve the organization's stated goals, the corporation establishes policies and procedures for its personnel to follow.
For the sake of transparency, this ensures that all employees are informed of all regulations and goals and earn their corresponding rewards. All employees adhere to the standard reward system since it is fair.
Happy Employee , Happy Company
Importance of Compensation in HRM
Employees in today's workforce are more likely to leave their positions than they were in the past. Employee onboarding and training costs the organisation money that could have been better spent elsewhere or used to hire more people.
Employees are more likely to remain loyal to a company if they are rewarded for their hard work. There is a constant desire to go up the corporate ladder and obtain a higher position in the organisation.
Employees are encouraged to perform harder by receiving incentives such as bonuses and public recognition. In order for both the employee and the company to keep track of progress and determine when goals have been met, a tracking programme must be in place.

Types of Reward Management
Extrinsic Rewards: These types of rewards satisfies basic needs like security and survival, pay, treatments and conditions.
Intrinsic Rewards: These rewards focuses on satisfying higher level needs like development and esteem.
Individual Rewards: Includes base pay, incentives, rewards attendance, performance, competence, and benefits.
Team Rewards: Includes team benefits and rewards groups cooperation.
Organisation: Includes profit sharing, gain-sharing and revenue sharing.
Objective of Employee Compensation in HRM
Support the company’s strategy
Recruit & retain
Strengthen psychological contract
Motivates the employees to a greater extent
Comply with legislation
Internal & external equity
Financially sustainable
Efficiently administered
Retaining the employee
Attracting new employees
Avoid cost of hiring and training of new employee
Encouraging positive attitude
Encouraging honesty and loyalty
Provoke employees to seek advancement
Help strengthen company’s reputation
Employee motivation and retention are enhanced when a company's reward system is well-managed.
The compensation system is an important part of human resources management (HRM) since a well-designed incentive system always leads to increased productivity and employee satisfaction.
To further enhance and maintain firm performance, reward management is an innovative approach to the implementation, creation of, and control of rewarding systems inside an organisation. There are strategic reasons to motivate, recruit, and retain the staff in this regard.
Development, design, and implementation of an effective wage structure are crucial to rewarding management's role as an essential component of HRM.