Essay On Job Performance

Employees are driven by a numerous motivators to stay in the company, but the biggest is simply getting a regular paycheck. Ensuring that the compensation system is effective is not just important but critical. A few organizations evaluate their compensation system to identify any shortcomings. It is always important to look at how the organization can improve its compensation strategy to attract the best candidates who can innovate and lead the company in the industry. In order to retain high performing employees, the compensation plan should offer more than just a competitive salary. A good example is Costco and Walmart, on the benefits side, 82% of Costco employees have health-insurance coverage, compared with less than half at Wal-Mart.

A well-articulated compensation philosophy drives organizational success by aligning pay and other rewards with business strategy. It provides the foundation for plan design and administration and anchors current and future plans to the company's culture and values (Kaplan, 2006, p.32). Recognizing and rewarding achievement is the cornerstone of the company A’s compensation philosophy. The mission of the company is to attract, select, place and promote all individuals based on their qualifications. The company believes that performance-based compensation helps attract, develop and retain talented professionals. In addition to base pay which based upon local market conditions and targeted to be above market, the company provides the following types of potential compensation to reward performance:

Monetary rewards usually refer to extrinsic rewards like bonus, promotion, salary adjustment, allowances, cash price, incentives, medical benefits, life insurance, stock grants as so on which provided by organization directly to employees. Non-monetary or intrinsic rewards like recognition, flexibility in working hour, greater autonomy etc are easier to implement and less expensive as compared to extrinsic rewards. In this article, the authors stress on the important of both extrinsic and intrinsic rewards in motivating employees towards excellent work performance and achieving organization objectives. The authors believe employees are not only need monetary rewards but also recognition through non-monetary rewards. By incorporating non-monetary rewards into compensation system will help in maintaining job interest and corporation among employees. Beside individual rewards, the authors also encourage rewards are to be given to cross function team which will result in knowledge sharing among team member, foster commitment and ultimately improve team performance towards achieving organization

Pay for performance systems have further been proven to have two advantages for organizations: attracting more high-quality employees and motivating employees to exert more effort at their jobs. (Gordon, Kaswin) This paper will show the positive benefits of performance pay as

There are many ways to provide incentives for employees. They do not necessarily need to be a financial incentive. There could be programs developed on a national scale to provide free education for high school seniors to be able to complete a certificate program as part of their high school education. The requirements can be a GPA of 3.5 or above and a letter of recommendation from their guidance counselor. Another type of incentive can be to have a job secured once they complete their education. Sign on bonuses always yield great outcomes.

To reward the employees, they would calculate who has most success in the organization, such as, who was acquired the highest customer service rating, and there will also be recognition for employee of the

Many high performance companies understand the importance of offering awards and incentives that recognize, validate, and value outstanding work. They help keep the employees motivated and productive, and are effective methods of reinforcing company expectations and goals. When the management of a department gets together to put an incentive program into place, they have to decide which awards are worth the effort. They also have to consider the perceived value of earning the award, as well as the effort that is required to earn it. Management and employees may perceive non-monetary incentives to be more valuable than the retail value of the award in cash. Non-monetary rewards in

It appears that the employee incentive program works for your organization. That’s nice to know. I find that employees are very appreciative of what you give them whether big or small, and others just like to complain. I found an article that talked about incentives used in healthcare are not an effective motivator for healthcare professional and wastes an estimated $20 billion in resources. The article said, seventy five percent of compensation incentives are so small or poorly communicated that staff do not produce the work outcomes employers expect from their staff. Among 4,500 healthcare providers and payers who use pay-for performance incentives, many of them were not aware of the awards being offered or were not able to distinguish incentive

An incentive can be that completing a goal will get you something or some sort of outcome that has been desired but unreachable up until that point. There are four types of incentives that relate to the work place. There is the compensation incentive, which tends to relate to money, meaning this could be a raise or a promotion or anything along the lines of financial gain. There is also recognition incentives which tend to include praises and congratulatory pat on the backs by people surrounding you at work, but mostly those of a higher level then you. Then there is the reward incentives, these are basically prizes given for doing an excellent job, this could be a gift card somewhere, or a free lunch, or any time of added bonus or present. The last incentive applied to employees when it comes to their jobs is the appreciation incentive, this includes company paid events, perhaps the annual Christmas party, or faculty mixer. All of these things are incentives for employees to work harder at work. At Henrys plumbing and Pumps, incentives could include Henry offering to buy the group lunch after a long day, or throwing a barbeque at the end of each month to show the staff that he appreciates the work that they

The phrase “employee reward system” is used to underline the programs that a company sets up in an effort to reward the desirable habits of the employees, thereby motivating them on group and/ or individual levels. More often than not, they are considered separately from the salaries and remunerations but may essentially be monetary in nature or otherwise bear a certain cost to the business entity (Marquis & Huston, 2009). As much as these were previously seen as the domain of large corporations or business entities, small businesses have essentially taken the cue and began employing them as a technique for luring or retaining its top employees in the extremely competitive job market, as well as enhance the performance of the employees. This is especially considering that the reward systems have a bearing on the job satisfaction of the employees in the business entity. As earlier noted, while employee recognition programs are usually blended with reward programs, they come with a distinctive or separate purpose altogether (Marquis & Huston, 2009).

Reward Management (RM) has been defined as the distribution of monetary and non-monetary rewards to employees in an effort to align the interests of the employees, the organisation, and its shareholders (O’Neil, 1998). In addition O’Neil (1998) also suggests that a RM system can serve the purpose of attracting prospective job applicants, retaining valuable employees, motivating employees, ensuring legal requirements relating to direct and indirect rewards are not violated, assisting the company in achieving human resource and business objectives, and ultimately assisting the organisation in obtaining a competitive advantage.

Organizations, hungry for more response options to reward their good employees, have widely adapted the emerging HRM technique of reward managementthat includes all sorts of monetary and non-monetary rewards in exchange for their performed work (University of Leicester, 2006). The value of combining base pay along with other performance related-pay and non-financial rewards spurs the recruitment and retention of good caliber employees and creates a feeling of achievement, recognition, responsibility, influence and personal growth amongst the employees (Armstrong,

Incentive pay is an important concept that allows an employee to be rewarded based on exceptional job performance. This is used to motivate employees into working both quickly and efficiently. In order to effectively utilize incentive pay, one must balance out payments between individual performances, group performances, and organizational performances.

Recognizing and rewarding high-performance is a key recommendation for any approach when managing any merit pay program (HRIS 2012). Merit pay is a compensation system where base pay increases and is determined by an individual’s performance. Using a merit pay plan is a good way for an organization to reward high performance is one benefit when using merit pay programs. The first step in implementing or improving a merit pay program is to have a solid performance management program, and this is another way a merit pay program is beneficial. Merit pay is a way to be successful and effectively implement merit pay with a uplift in salaries, and this is a third way using a merit pay program is beneficial to an organization. There are some drawbacks when using merit pay programs, such as paying some employees more than others. If you pay high-performing workers more than low- performing employees, the high- performers may stay, causing the low- performers to complain or leave the organization. A second drawback in using merit pay program is that employees become less motivated if not paid to their satisfaction. For example, if employees feel they should be making more money for their performance, this causes them to have low self esteem, and want to find employment at other organization. The last drawback associated with

An incentive pay program can reward employees who continue to produce superior work or encourage employees who already produce good work to best. Sometimes, use an incentive system when employees are lack of enthusiasm of getting down to work and improving things. If everyone in the same job classification gets the same pay, there is no real incentive to do an outstanding job (French, 1990). Various incentive plans used to motivate all employees such as production staff, sales staff, administrative staff and managerial and professional staff on an individual basis. To be improved employee work performance, the incentive pay programs need to be fairly matched with the employees’ expectation. Properly designed and maintained incentive pay program has the potential to increase employees’ productivity and work performance.