Reward systems are a popular tool for motivating employees and improving organizational performance. Research has found that reward systems can have a positive effect on employee motivation and job satisfaction, as well as organizational productivity and performance (Liguori, 2019; Menezes & Oliveira, 2017). This article will discuss the components of a reward system, the different types of rewards used, and the best practices for designing an effective reward system.
A reward system is a set of incentives designed to motivate employees to achieve their goals and objectives. These incentives typically include both tangible and intangible rewards. Tangible rewards are those that can be physically seen or experienced, such as pay increases, bonuses, and promotions. Intangible rewards are those that cannot be seen or experienced directly, such as recognition, praise, and awards.
Different types of reward systems can be used to encourage employee performance. Performance-based reward systems are based on measurable objectives, such as sales, productivity, and customer satisfaction. These systems often include incentives such as bonuses and promotions. Non-performance-based reward systems are based on intangible goals, such as team spirit, loyalty, and initiative. These systems often include recognition, praise, and awards.
When designing a reward system, it is important to consider the best practices for incentivizing employee performance. First, the reward system should be tailored to the specific needs and goals of the organization. Second, the rewards should be consistent and equitable, so that all employees feel they are being appropriately rewarded for their efforts. Third, the rewards should be achievable and motivating, so that employees are encouraged to strive for excellence. Finally, the reward system should be regularly monitored and adjusted, to ensure that it is meeting the organization’s goals and objectives.
In conclusion, reward systems are an important tool for motivating employees and improving organizational performance. Different types of reward systems can be used to incentivize different types of performance. When designing a reward system, it is important to consider the best practices for incentivizing employee performance.
References
Liguori, M. (2019). The impact of reward systems on employee performance. International Journal of Management & Information Systems, 23(1), 129-140.
Menezes, M. A., & Oliveira, P. (2017). Impact of rewards on employee motivation: An empirical study in a Portuguese organization. International Journal of Management & Information Systems, 21(1), 37-46.