Rewards System Essay Example

Advantages of a Rewards System

A rewards system is a combination of neural structures that are responsible for desire salience. These structures particularly involve organizations that consider pleasure as a major component and are connected to positive emotions. Every organization needs a reward system to motivate its employees especially for those that follow the company rules, standards, and procedures, for them to perform at their best and desired level. Having a reward system in a company or organization has numerous advantages to both the employer and the employee to name but a few.

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The rewards system is a one-time human resource project such that instead of an organization spending months preparing the payrolls of each employee every year; your working team will only have to make the roll-out of the total rewards system a single time. (Fargo, 2013 p.11) With the help of this, the staff members will only be required to make updates configuring certain elements as desired, making the company have more time to focus on ways of making it successful and concentrate on other priorities.

A system requires legwork from the human resource upfront making rewards system to be cheaper depending on a company's goals. Moreover, it is less expensive compared to total rewards statements in which every year, a great deal of work is needed. (Postrel, 2010 p.9). Employers and employees get access to powerful analytics, since everyone is curious about seeing the future, and due to this, the rewards system can estimate how their total rewards package will look like in the coming, maybe three to four years. Employees, because of this, will always be thinking about the long-term ways of working and raising the company and thus everyone will wish for retention in their workplace. (Postrel, 2010 p.9).

The rewards system can be updated easily and regularly, with a configurable total rewards solution. The changes that are made and the presented information is relevant and timely, instead of being outdated. Also, the number of expenses will also be controllable as a complete scope of rewards program makes some business possess the ability to create a matrix of expenditure within its finances. If a company earns more profit, adjustments in expenditures should be made. Additionally, the employee's perception of worth should be seen through increased income.

Disadvantages of Rewards System

With the advantages mentioned, the rewards system also has its disadvantages on an organization as follows; There will be self-focus and competition because employees will not see the sense of teamwork and will be focusing too much on earning the individual benefits and rewards. (Schmeyer, and Cruz, 2011 p.4) Though competition is good, too much and spirit of negativity can undercut the goals of a reward program.

Lag and congestion in the market will be noticed due to budgetary constraints of both the employer and the employee. A company may be forced to pay an employee below the market salary, provide minimal retirements and health benefits, due to the small business reward programs. A lagging rewards program affects the financial stability of a company. (Schmeyer, and Cruz, 2011 p.4) Moreover, a company should consider an appropriate mixture of staffs as each employee has a significant role and not all of them are paid the same. An organization should properly blend the competitive salaries and the intrinsic value of each employee. For example, an employer should be able to weigh between employees having proper health benefits or them having high deductible insurance that covers all their wants.

Executives receive cost-prohibitive reward programs and substantial bonuses compared to the ordinary employees that lead to inequitable employee rewards. This employee reward program type leads to a divided workforce and fosters elitism among employees. (Medcof, and Rumpel, 2007 p.19) The mentioned might cause them not to show commitment to company's workplace equity. Not all employees receive their awards wholeheartedly, but some envy those of others causing public sentiment and opinions from the public. For example, in 2010, after the government bailout, when the American International Group Inc received bonuses worth almost a hundred million dollars, many employees expressed outrage about corporate greed publicly.

This showed the imbalances that people have in their places of work and the rewards that each person receives. For an employee to be gifted he/she need to have improved in their work area, but not all of them are gifted due to biasness and motivation issues from their bosses. An employer may fail to recognize a most improved employee and reward a less improved colleague; this lowers the motivation spirit of one as he/she will think that their work is not good enough due to the employer's biasness

Role of Rewards System

The role of rewards system in an organization include the following: It should be mutually beneficial to both the employer, employee and the organization because the employees' productivity will increase, if they feel motivated and committed to working days, this will additionally benefit the organization. (Medcof, and Rumpel, 2007 p.19) A reward system should be able to reduce absenteeism in an organization through rewarding employees for well-done jobs. This will make cases of one being sick or have emergencies reduced, and one has the urge to work daily be increased. This also helps in increasing the profits of a company as there will be no inconveniences made as no employee will be absent.

Employees will feel valued and will be able to give out their opinions when loyalty is guaranteed to them. They will in return, appreciate the work they are doing through showing daily commitment to their work. This will make them loyal to the company, only if a reward system is in place. (Medcof, and Rumpel, 2007 p.19) Having a reward system increases and promotes teamwork among employees as they will work as a team to achieve quality targets in return for rewards. Efficiency and a jovial workplace will also be enhanced as good relationships will be created both at work and outside work.

Employees' morale can also be boosted by having recognition and incentives, which are the core factors during work. This gives them a clear focus by encouraging them to meet their targets and goals. Through doing this, the morale of employees will not only be increased but also that of the entire organization, making it successful faster. Moreover, a reward system should be able to motivate the workers within an organization, and this can be done by encouraging employees to work hard, to meet the organizational targets and goals in exchange for quality rewards. (Naranjo-Valencia, Jimenez-Jimenez, and Sanz-Valle, 2011 p.8)

This will make one prove him/herself to the organization their efforts and even wish for promotions. A good and successful company or organization should be able to create time a for all employees and offer them a vacation through providing trips and treats for both the employer and employee break the monotony of being in one workplace. This increases one's view and love towards their job aiming to give their best in return.

Importance of Criteria Development

Criteria development is achieving business goals through establishing a new strategy; for example, if one wants to employ a person, a team has to sit and discuss the qualifications needed for employment. As for goods, competitive products, focusing on stability from customers who are able and willing to pay for the products.

Here is the importance of criteria development to name but a few. Many employers develop and consider the criteria for hiring, interviewing before any resumes are made for an employee. (Naranjo-Valencia, Jimenez-Jimenez, and Sanz-Valle, 2011 p.8) By doing so, the team hired will have a clear view of the qualifications they are searching for and who should proceed to the selection process. For example, degree or masters holders if they are fit for a certain job, the years of experience in some fields then develop the type of questions to ask an applicant.

Validity refers to how useful one's documents is or character for them to qualify for a specific job. For example, in the application for office work, bibliographies are useful in the application process to determine which questions they predict and the desired behavior. Reliability, in addition, refers to the level in which some selection processes yield similar information over time. For example, if a manager asks one interviewing question to the applicants, and all of them answer the correct answer similarly and positively, then the question is considered reliable. (Taylor et al., 2011 p.64) Fitness too does not necessarily talk about the body, but it simply refers to how convenient, experienced and how one is educated.

One should be able to fit in a company's culture, for example, every big company needs a hacker who can find a way around the system to deal with constraints and viruses placed upon a system, or a company can offer customer services for its customers. After one has developed criteria for the specific job, they can proceed with the reviewing process according to their wish. For example, a manager may decide to give his/her employees the list of all the applicants, then asks them to write the people whom they see fit to have the job, then compares the list and draws a conclusion from the majority views.

Importance of Application and Resume Review

Application and resume review refers to what one considers before going for an interview or how a company considers each applicants' form before granting one the job. Here is it's importance. It determines a salary range. A company should be able to have appropriate responses when its candidates ask about the salary range for it not to lose best employees or for one not to invest a lot of time.

A resume review should be able to develop a candidate's profile or a key qualification list. A company should also be able to narrow down up to the relevant and most important skills of an applicant. This will be termed as qualification distillation and is valuable criteria in candidate comparison. (Su et al., 2015 p.23) The company should have a job posting example especially in marketing specialists that is created from the list of the key qualifications. Through doing this, potential candidates will be evaluated, and the company will have specific people to choose from it.

Once someone has been recruited by a company, his/her resume contains the summary of what they do for a living, and the employees should be able to explain what they do and their purposes. Through proper explanation of one's responsibilities and duties, they can be promoted for they fit into the goals of the organizations they are working for it. Moreover, when one writes and updates their resumes, it forces them to take inventory of their skills and work history. This helps one to know his/her area of weakness, improve on it and to review their personal goals. With its help, one will also be able to understand better their professional and personal goals and how they fit into the workplace. Resumes do not show a person's ability that hiring personnel's can understand in giving one a job. A solid and quality resume should precisely explain one's background, qualifications and areas of expertise to increase chances of getting a job faster in the market.

When someone is in both the learning mode and in a workforce, they are focused on their interest in the kind of work after completion of studies through the inventory. On completion, one will be able to transfer their learning to actual demonstrations of knowledge and skills in their work environment or in describing the qualifications and capab...