Strategic Rewards Systems – An Overview

Introduction

Strategic Rewards Systems – An Overview MBA hr project report Organizations must become more strategic if they are to survive and succeed in the current business environment. Functional and unit strategies must be aligned with the overall firm strategy to enhance organizational effectiveness. As human resources (HR) takes its seat at the table and affects the strategic direction, organizations are beginning to recognize that human capital can be utilized as a competitive advantage. Employee reward systems apply to programs developed by an organization to reward success and empower the person and/or group-level employees. These are normally considered different from salaries, but they may be financial in nature or have a value to the business otherwise. Although previously considered the domain of large companies, small businesses have also started to use them as a method to attract top talent in a competitive job market as well as to improve the productivity of employees.

The objectives of a strategic reward system are; attract and retain employees, motivate performance, promote skill development, encourage corporate culture and determine pay costs. Rewards can be either intrinsic or extrinsic. However, it is important when designing, implementing and using a reward strategy, that meets both individual and organizational needs.

Pay and Download Report Now