Motivation in practice
Employee Rewards is a broader concept than pay. It is a portfolio of financial and non-financial benefits that provide a competitive package to motivate staff, increase job satisfaction and therefore improve retention and performance.
Employee reward is the combination of elements:
- Basic pay expressed as an annual salary, weekly wage or an hourly pay rate
- Additions to basic pay which take many forms, such as bonuses, performance related pay and sales commission.
- Employee benefits such as pension, health insurance, company car which form a source of indirect pay
- Non financial rewards which are designed to focus on human needs such as recognition, responsibility, personal development and opportunities for achievement.
It is from the combination of rewards that flexibility can be established.