Research Paper on Innovative Rewards for Exceptional Employee Performance: A New Trend in Business

Introduction

Trends in business have witnessed a gradual substitution for performance reviews to performance management. The transition has enabled companies to keep up to date with the progress of employees in a more seamless fashion. For quality enhancements and timely service delivery, businesses not only have to recognize exceptional employees but also reward them deservedly. Often, rewards have been in the form of financial packs, bonuses, and promotions. With innovation, however, businesses can better equip their compensation strategies to suite their companies. For instance, more firms are providing for enabled communication with family and friends, bringing pets to working environments, subsidized childcare, gym membership perks, enacting, and office betting pools, among many. All these have improved the attitude in the workplace, enhanced job satisfaction, and enabled companies to meet their set goals and objectives with ease. Some firms perceive new and improved reward system as an extravagant means of motivating the human resource workforce, although it reduces production costs and enhances productivity.

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How Innovation Empowers a Firm's Competitive Reward Strategy

Businesses have to come with terms that the working population is gradually being taken over by millennials. Among the top priorities of this generation is a proper work-life balance. Furthermore, they are enthusiastic about making noteworthy progress in society rather than deliver tasks for an institution for a paycheck. As such, innovation is key to developing effective reward strategies in the workplace (Greene, 2018). Understanding this is key in formulating a technique to reward employees more innovatively. Thus, rather than it be a general compensation strategy, the organization will be more focused on meeting the specific tastes and preferences of their staff. It will improve the satisfaction derived from the gift as the particular individual is personally attached to it. Besides, they will feel valued by the company, which works wonders in building staff morale and enhancing moods in the workplace.

It is vital to note that the ultimate objective of any business is to minimize the operational costs and maximize the generation of revenues to widen profit margins. It is this that enables institutions to compete in markets. Traditionally, rewards get offered at specific periods. Moreover, it involved buying of presents whereby those recognized would be presented in front of their coworkers (Aguenza, & Som, 2018). To achieve the effect of motivating the rest of the staff to be as productive, companies would have to go out of their way and purchase expensive staff. In the long run, this was detrimental to the scarce financial resources in the firm. However, with innovation, it is not the cost of the reward that matters, rather the awe it induces to the staff. For instance, rather than pay for an all-expense vacation to the Bahamas for the staff, one could make a music subscription to Apple or Spotify Premium for the workers. Though a seamlessly less costly gesture, it will work wonders in making employees feel like part of the firm. Therefore, with innovation, the reward strategy becomes cost-effective. With innovation, organizations can enhance time management in reward systems. Time is perhaps the most sensitive financial resources to firms. Poor management of time renders all the other techniques futile in meeting their set goals and objectives. Traditional frameworks of reward would designate hours to execute the process. Besides, mostly, the process would be untimely, eventually not meeting its intended purpose (Aguenza, & Som, 2018). Thus, in the long run, they consumed much of the organization's time that would instead get designated to other more productive ventures. With innovation, however, the system strives to identify what works best for who, and the most efficient fashion of reward that would ensure time management.

How Innovative Benefits Could Get Tied to Specific Jobs

Current states in the economy are indicating a fluctuating wage and price rate attached to specific jobs. Thus organizations must strive to keep up to date with these changes. While it is vital to ensure a low employee turnover, companies also have to minimize expenses. To ensure a balance between the two, then it is inevitable that businesses will align benefits to given job posts. Well-crafted benefits enhance job satisfaction among employees on the condition that a proper work-life balance is maintained. An example appealing to a young employee with retirement plans may be ineffectual. With innovation benefits, job satisfaction, workplace morale, motivation, and self-drive are evident in the workplace. In addition to rewarding, customized benefits may allow for designing workplace behavior, recognizing exceptional job performance, and in elevating pride for the organization. Adept staff must be recognized and rewarded accordingly through tools that ensure honest recognition and rewarding. Renowned international organizations such as Google, Amazon, and Cisco are leading in the incorporation of newer reward systems. For instance, employees are allowed to bring pets in the workplace, individuals are allowed to communicate with friends and family while in the workplace, and there are regulated nap sessions. Thus innovative benefits that are job-specific empower a company from various aspects.

As much as job specifications are vital for service delivery in an organization, still some tasks are much influential to the company. For instance, a company's sales department may be useful in tracking inventory; the department of Research and Development may get perceived as being more important. It happens since the results yielded from this department enable and organization to forecast future changes in the industry and align their strategies accordingly. Thus the rewards should be a reflection of the value organizations hold for different departments. It is, however, worth noting that competence and creativity should be incorporated while enacting these policies to ensure that the employees within the organization feel equal. Concerning the perspective discussed above, it is inevitable that if the staff detects any form of discrimination, then the primary intent of motivating employees will not be achieved. However, with effective programs, organizations can encourage commitment in specific job fields and ensure that the company has the upper hand in market competition.

A Critique of the Essence of Equity-Based rewards in Comparison to Creativity

Current and emerging trends have witnessed competition stiffen in both the local and international scale. Businesses have to minimize production costs and enhance the generation of revenues to stay competitive. Equity-based compensations may get termed as those that incorporate company efforts to align them with the set goals and objectives of the company, shareholders, and even employees (Aguenza, & Som, 2018). Thus it creates a cycle whereby, as employees strive to get more rewarded, then they deliver more and more quality services to the company. In turn, the company dedicates more and more efforts to ensure set goals and objectives get met diligently. However, it is advisable that companies that shun away from rewards that are based solely on monetary resources since it will inflate the production costs of the company. Through creativity, however, companies can enact frameworks that analyze performance and pay on merit. However, this does not have to be necessary cash as other substitutes could get used as well. Besides, these systems guarantee reduced salary-tax agreements as employees get to take up the initiative. Equity builds the interest of employees towards more productive ventures of the business. Creativity elevates the self-drive of employees towards accomplishing their tasks while still ensuring that their attitudes and moos towards are not affected.

Equity rewards are essential to organizations due to a variety of reasons. For one, it is a tool for motivation in the workplace. It is without a doubt that monetary benefits are more appreciated by employees, thus a likelihood that they will work harder in the future. Secondly, it integrates management with shareholders. It genuinely builds the interests of employees to see the company being profitable, which enables the objectives of shareholders to get met with ease. Thirdly, it ensures the effective conservation of scarce economic resources within the firm. With equity rewards firms do not necessarily have to deplete other resources to recognize the efforts of their employees (Aguenza, & Som, 2018). The system also enhances the creation of wealth as employees strive for excellence. This framework of recognition is even more appropriate in lessening tax burdens. Aside from the accumulation of capital, the system ensures that a firm's employee turnover is as low as possible. With the rise of innovation in the realms of human civilization, equity-based programs are likely getting outgrown. It results from the setbacks in policies and regulations settings. However, both systems could be incorporated to enhance service delivery in an institution.

Critical Aspects of Innovation Integration in a Traditional Total Rewards Program

Traditionally, compensation and benefits were limited to specific areas of professionalism or practice that were constrained by sophisticated methods to serve the entire organization. The structures for salaries were entirely rigid, and so were the benefits programs which get established as one-size-fits-all homogenous systems. However, currently, there exist specific elements for the fusion of integrated innovation and traditional total reward programs. This framework operates intending to meet key stipulations. Perhaps the most important of all is to maintain the lowest employee turnover. The first of these critical elements is culture. Culture entails the collective attitudes, behaviors, and thoughts in an institution. It is also the blueprint for an organization's way of functioning and why they prioritize set goals and objectives. Even though it is an invisible entity, culture is one of the most powerful aspects. The environment is equally a detrimental factor. It entails the external factors that are implicative to business performance. Examples include a change in legislation and entry of new firms in the industry. A change in one or more of these elements affects the overall performance of businesses. As the priorities of employees shift drastically. For firms to access the services of top-notch talent, they have to design commendable recruitment procedures. It is this talent that would enable future organization changes and prepare appropriately to elevate its competitive edge. Employee retention is, without a doubt, a factor that enhances business performance. For one, it determines the perception of the organization by the public. Secondly, the service rendered by top-notch employees is difficult to replace. Ultimately, the business must uphold motivation as the key elements of the working culture. Motivations build the moos and attitude in the workplace, making seamless service delivery a norm. Once the business gets to enact its goals and objectives that steer economic growth and development.It is up to each of the employees to deliver on their expectations. The commitment to deliver depends on the employee's attitude, mood, and perception of the organization. With motivation, the organization ensures that employees are committed to providing quality services in a timely fashion.