Human Resource Management: Rewards and Compensation

Rewards Management

• A system that supports the organization's goals by attracting, motivating, and retaining employees through various rewards.

Objectives of Rewards Management

• To attract and retain talented employees
• To motivate employees to achieve organizational goals
• To create a sense of fairness and equity among employees
• To align employee behavior with organizational objectives

Effective Rewards Strategy

• A strategy that aligns with the organization's overall goals and culture
• A strategy that takes into account the organization's financial situation and industry standards
• A strategy that is fair, transparent, and communicated effectively to employees

Content of Rewards Strategy

• Philosophy and goals of the rewards system
• Reward components and their respective weights
• Performance measures and evaluation criteria
• Communication and feedback mechanisms

Compensation Defined

• The total amount of monetary and non-monetary benefits paid to employees for their work

Historical Events of Compensation

• Early 20th century: Industrial Revolution and the introduction of wage systems
• Post-WWII: Introduction of benefits and perks
• 1980s: Shift towards performance-based compensation
• 1990s: Increase in variable pay and stock options

Components of Total Compensation

• Core compensation (base salary and bonuses)
• Employee benefits (health, retirement, etc.)
• Work-life benefits (flexible scheduling, etc.)
• Recognition and rewards (non-monetary)

Elements of Core Compensation

• Base salary
• Performance-based bonuses
• Incentives and commissions

Employee Benefits

• Health insurance
• Retirement plans
• Life insurance
• Disability insurance
• Paid time off and holidays

Test your knowledge of rewards management, compensation, and employee benefits. This quiz covers the objectives of rewards management, effective rewards strategy, and components of total compensation.