Employee reward systems
Employee reward systems refer to programs set up by a company to reward
performance and motivate employees on individual and/or group levels. They
are normally considered separate from salary but may be monetary in nature or
otherwise have a cost to the company (eg. training). The reward systems are
strategically implemented to
1. Attract and retain employees
2. Motivate performance
3. Promote skill and knowledge development
Employee commitment and motivation is clearly a central issue when it comes
to the design of the organization’s rewards system. Motivated work groups are
crucial to an organization’s success. Motivation is about leadership – leading
people to attain the best possible results for the organization and for individuals
themselves. It is also about retention, a critical issue in today’s environment of
skill shortages, where talented staffs are attracted by competitive pay and
