Essay Designing a Rewards System

1351 Words Apr 9th, 2015 6 Pages
Designing a rewards system

March 20, 2015
Shanti Anderson

When creating a rewards system for employees, it is vital to understand the rewards system itself. A rewards system must be offered by managers that understand how effectiveness is to be achieved and what its employees consider to be the important factors in determining the quality of work life. There are four necessary reward system properties; basic needs satisfied, competitive benefits, equitable distribution, and employees treated as individuals. To ensure basic needs are being met the company must offer competitive pay scales, as money is the biggest motivator to every employee. Basic needs are described as the ability to support themselves and
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By offering individualized rewards, this will help achieve a well-working rewards system. When developing a rewards system, management must know the nine major factors of motivation. These factors include: 1. Respect 2. Good pay 3. The chance to turn out quality work 4. Chance for promotion 5. The opportunity to do interesting work 6. The feeling that my job is important 7. Being told by my boss when I do a good job 8. The opportunity for self-development and improvement 9. Having a large amount of freedom on the job Respect is a value that needs to be felt by each employee. An employer can show respect with simple, yet powerful actions. Treating people with courtesy, politeness, and kindness goes a long way. Listening to what employees have to say also shows respect. When developing new ideas as employees' opinions, and if you use their ideas praise them for using it. To be respected, one must show respect. "Treat others as you wish to be treated". Employees want good pay. A company must know what salaries are competitive for each employee's position. Salaries will be based on education, reputation in the field, experience, and competitive salaries. Competitive salaries are an average pay scale for a certain position throughout multiple companies. A company that wants to hire, and retain a good employee must meet, or exceed competitive wages. For an employee, the opportunity to turn out quality work is

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