The term reward is used synonymously with the term remuneration. Both have the same meaning. Basically, there are four main objectives of the remuneration system in an organization. In order to understand the various influences on the design and implementation of reward systems, to demonstrate the relationship between motivation and rewards, distinctions are also made between salary, incentives, commissions, and profit-sharing within the organization.
Finally, knowledge of various non-financial rewards is determined when determining the remuneration system.
The remuneration strategy consists of three components:
- Organizations value value
- Award management structure
- Award management process.
Ultimately, the remuneration management process basically consists of how to communicate the strategy and the extent to which employees are involved in the design and implementation of the strategy. Take your company’s performance to the next level and contact reliable companies to learn more about their proven methods to enthusiastically motivate your sales team!
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Therefore, it is important to discuss the following points in the change management process in relation to compensation management.
- Value for price management
- Payment for the service
- Let employees participate in organizational success
- Employee participation in the development and implementation of a remuneration strategy.
- A combination of financial and non-financial rewards.
Price management structure:
After considering the core values that an organization might want to promote through its compensation strategy, consider a structure that could be created to promote these values, as shown above, namely:
- Payment for performance
Award management process:
These are the two main processes associated with the compensation management structure as mentioned above, namely:
- Work participation
- Greater strategy effectiveness
- Interventions such as organizational climate research and
- Investigate employee attitudes.