The elements of reward management within a business organisation are all the things that
they use to attract potential employees into their business which includes salary, bonuses,
incentive pay, benefits and employee growth opportunities such as professional
development and training opportunities. Having a reward management system in place
provides the business with many advantages, especially in small to medium size
organisations where the managers must have a good relationship with the employees.
Reward programmes have proved to be very successful in motivating employees and in
turn increase the performance of the organisation as a whole.
Below are some of the reasons why a reward system is important:
Mutually beneficial- A reward system is beneficial not only to the employee but also to the
organisation. The employee will feel more motivated to work harder.by having a reward
system in place the employee will feel more committed to their work and their productivity
will increase. An increase in productivity will then benefit the organisation. Therefore a
reward system is mutually beneficial to the employee and the organisation.
Motivation-A reward system will motivate employees by reaching targets and
organisational goals in exchange for rewards. A reward system is great at motivating
employees but they will also be motivated to prove themselves to the organisation.
Absenteeism-A reward system will reduce absenteeism in the organisation. Employees like
being rewarded for a job well done and if there is a reward system in place, employees will
be less likely to be ringing in sick and not showing up for work. Also by having a reward
