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Designing a Reward Program

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Designing a reward system

Designing a reward system
When implementing a rewards program in the workplace there are several things to consider. When beginning to implementing a program the first thing to consider is the goals of the company or corporation. Sometimes the employer will seek the employees input for ideas of some possible rewards and promotions. Usually they reward will be based on performance of an individual, group, or department. Measurements can be of efficiency and work ethics. The reason for the reward program will be show appreciation and to keep the employees happy enough to stay with their jobs. Another step to build a reward system would be the budget for the incentives, and know the amount of employees that is employed and if they intend to hire more in the next year. Rewards are important but should only be rewarded if the employee has done something more than their basic job. “If you want people to change, you cannot reward stability, even though that’s exactly what many organizations do” (Lawler & Worley, 2006). They do this in the form of automatic raises for each period of time they have been with the company.
The aspect of a reward program that covers respect for the person would include the employee doing work that is within their expertise or capabilities, instead of some lessor job that requires little or no skill, with the opportunity to advance within their department.
To realize the employee’s need for good pay they should be with the parameters of the area the possibility to get pay raises. According to Cissell (1987) when companies are in trouble they do not have time or energy to focus on individual reward, but companies experiencing rapid growth usually prefer a profit-sharing program. When pay is within guideline for the area most people know what to expect in the area of anticipated wages. Offering a little above the local areas wages will pull in more prospects for the position giving the organization a pool of the best candidates for the job. This in addition to a possibility to improve on their compensation and the ability to give input to the organizations rewards program, and future promotions will draw more desirable candidates.
Employees want the chance to do good work and they want to be needed within the company. When doing a good job they would like that to be considered when a chance for promotion comes around. A good reward system will have a way to bookmark in employee’s files when they have gone above and beyond in their job.
When assignments come around to do interesting the jobs they should be handed to the employees that show interest in the job, and has been diligent in their daily work.
A job well done allows management at regular intervals to let the employees know that they done a good job, and have some small incentive such as an extra hour paid at lunch.
Within the organization new positions should be promoted from within. Employees with this type of opportunity to better themselves will work harder to be noticed. Another way to give employees opportunity to better themselves would be to offer partial or complete reimbursement for continuing education for job related courses.
Another important aspect of building a reward system for an organization knows initially how much money you have to work with. You cannot offer an incentive program that you cannot cover in the budget. How many employees, how much money, and intended hiring during a certain period of time are all key elements to preparing a successful reward system.
According to Britton (1994) changes to a rewards program should be made in an orderly and thoughtful manner, and should refrain from drastic changes, and no pay plan can accomplish everything or take the place of good management.
Employees want and need to know exactly what their job is and when doing over and above what their job entails what are the possible rewards.
When developing a successful rewards program it should be fair and uniform for all employees or a separate plan should be devised for each department. The goal of the rewards plan is to give the employees the incentive to do a good job which in turn will make for a better organization.
After considering employee input on the rewards system the number of people affected on each level of reward and the amount of money involved you can start to put the reward system to paper. Adding to the system who is responsible for the evaluations, and when they are to be done and how the rewards to be delivered in a timely manner. Employees that are falling short of their job requirements should also be notified of the deficiency.
Some example of low level rewards could be employee parking spot, lunch bought, gift card, or a small bonus of a small amount of money ($50).
Medium level rewards could be a day off with pay, dinner at a nice restaurant, or a small bonus.
High level rewards could be a week off with pay, a large bonus, promotion, or percent of wages in form of a bonus.
In all levels a good old fashioned “Job well done” from the manager or direct boss is appreciated. When implementing the reward system diversity of the employees should be thought of because there are going to be different levels of skills and if employees feel that they cannot reach any level of reward it will be worthless as an incentive to those people.
Some things that can be considered when deciding what you are trying to get done is attendance, never being late, and the quality of work. The criteria for the rewards should always be well understood by all in the organization.
Implementing a reward system for an organization can motivate the employees and inspire them to do a good job, however; when it is complicated or no one feels that they can accomplish the goals it can actually de-motivate them.

Britton, P. B., & Ellis, C. M. (1994). Designing and implementing reward programs: Finding a better way. Compensation and Benefits Review, 26(4), 39. Retrieved from
Cissell, M. J. (1987). Designing effective reward systems. Compensation and Benefits Review, 19(6), 49. Retrieved from
Lawler,Edward E., I.,II, & Worley, C. G. (2006). Winning support for organizational change: Designing employee reward systems that keep on working. Ivey Business Journal Online, , 1-5. Retrieved from

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