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Task One: Presentation to Key Stakeholders

• An evaluation of two of the principles of reward (intrinsic and extrinsic reward and integrating reward with business objectives) (1.1).

In any organisation, rewards play a vital role in how business activities are accomplished. They are explained as motivational tokens that improve and encourage work and performance in an organisation. rewards principles are considered to be wide statements that demonstrate a company acts with employees as well as how to reward them for their efforts for on-target or above-target performance. The principles of reward serve as a guide to organisation for rewarding their employees fairly and consistently. One of the reward principles is the total reward approach that is normally integrated by organisations in the form of monetary, benefits, and development rewards to employees who accomplish particular organisational goals (Bwowe and Marongwe, 2018). The main aim of the total reward approach is to establish a balance between the needs of employees and organisation. Another principle of reward is fairness. (Fleurbaey and Maniquet, 2018) revealed that employees require fairness as well as equitable treatment to be a core driver for engagement, retention, and performance. It is further noted by Baird et al. (2021) that fairness in the reward system leads to elevated positive feelings and emotions among employees in the companies, leading to behavioural alignment to organisational values. This is against unfair treatment that is taken corrosive and can developed feelings, involving hostility, distress, increased retention rate, absenteeism, and disappearing willingness among employees to accomplish organisational goals. Another reward principle is related to intrinsic and extrinsic rewards. Intrinsic reward involves the concept of motivation that develops among the employees as a result of the reward system. Extrinsic rewards are tangible rewards and are mostly financial in nature, involving salaries, bonuses along simple gestures like verbal praise, awards, and additional responsibility.

• An evaluation as to why organisational culture and performance management are important to the principles of reward (1.1)

The principles of rewards are very imperative for any organisational culture and performance. Employees are not interested to work in a company where they feel unappreciated and their efforts are not valued despite their great efforts. The high turnover rates in Home International might be due to the reason that there is no proper organisational culture and performance management present for the principles of reward. For a perfect reward system, it is crucial that a positive organisational culture must be developed by each and every employee to improve management performance. The strategy of reward possesses numerous roles in the organisation. Firstly, it assists to accomplish organisational goals by developing a performance culture, leading to increased performance (CIPD, 2021a).  Through the integration of a reward system, improved employee engagement and motivation can be attained which is important to improve their performance. When principles of rewards are strongly adhered to and followed, opportunities will be developed for the promotion of a culture that recognise and value employees for their outstanding performance. As a result, the management inseminates and promotes a performance-based culture among employees to attain the organisational goals.

• An explanation of how Home International can implement new policy initiatives and practices in relation to rewards across the organisation (1.2).

Every organisation implements some policy initiatives and practices that must be adhered to and followed by every employee. In order to integrate policies and practices in relation to reward, the pay policy should be competitive enough with the external labour market so as to retain the best workforce for the success and progress of organisation. In this regard, pay structure can be considered by the organisation where a framework can be offered that values jobs as well as understanding how they are related to one another in the organisation along with the external labour market (Bapuji et al., 2020). During the policy implementation, pay levels are also necessary to consider. The policy regarding pay levels should recognise job evaluation. Therefore, the management is obliged to consider the pay levels and make sure that they should develop on media or upper quartile range of the amount (Bender and Pigeyre, 2016). Regarding the pay awards, the main element is to analyse the budget for annual pay and forms a policy that involves a performance-related approach. Regarding pay progression, the policy should be developed by recognising all the factors. the pay progression should be conducted through incentives and bonuses (Armstrong and Murlis, 2007). Finally, the implementation of the policy should be carried out based on legal requirements, and all reward policies and payments should fulfill legislations, involving minimum wage and statements regarding discrimination (Murphy, 2012).

• An explanation of how both people and organisational performance within Home International can impact its approach to rewards both positively and negatively (1.3).

During the formation of the reward system, the organisation may be affected by the people as well as organisational performance and people both positively and negatively. The main aim of reward is to influence the employees to join and then retain them in the organisation to offer their best to their firm (Danish and Usman, 2010).  Under these consequences, the behaviour of people making certain decisions regarding the reward approach. For example, in the previous days, salaries were utilised as a measure to attract people to the organisation, while benefits assisted to retain them and incentives and bonuses were a great source of motivation to them. However, this has changed in the present times as people are more concerned about benefits as means of reward irrespective of other financial incentives. Considering the perspectives of people, they are influenced, retained, and engaged in working effectively by different forms of financial and non-financial rewards. In a few situations, some employees recognise the financial element in the reward system, influencing the decision in reward strategy. This is common among employees who are new in their careers and are more concerned to gain access to the organisation. On the other side, some employees can also work at lower rates, if they are strongly attached to the organisational aims and objectives. In this situation, the nature of the people influences the reward approach. From the perspective of organisation, some employees consider performance a determining factor for reward system development. However, if the reward system is poorly developed, it can lead to increased labour turnover, decreased productivity along with a general attitude of laissez faire in the workplace. From the organisational perspective, it can develop additional costs in the expenditure of an organisation (Clohessy and Acton, 2019).

• Using Home International and a second business example, produce a comparison of performance-related pay and intrinsic rewards as examples of benefits offered by each different organisation (1.4).

Performance related pay is a manner to manage pay by relating salary progression to an individual performance assessment that is usually measured towards pre-agreed objectives. It can work as a measure for increasing employee performance and effectiveness with the help of goal setting as all employee’s desire to accomplish the best pay increment, leading to the improvement in motivation, morale, and a focused workforce. However, setting unachievable goals can result in demotivation among employees. If the culture turns to be more competitive the morale among employees can be reduced (Afsar et al., 2020).

Intrinsic rewards are considered to be internal rewards that are given to employees for completing their work or tasks successfully. These rewards are associated with the psychology of employees and are formulated based on their abilities and efforts. Intrinsic rewards result in increased rates of persistence during learning and accomplishing something new, along with enhanced employee engagement (Kwon and Kim, 2020). However, intrinsic rewards result in ignorance among employees regarding safety standards and as a result, they work insanely to achieve something that they are passionate about.

• An assessment of the benefits and drawbacks of how extrinsic and intrinsic rewards contribute to improved employee contribution and sustained organisational performance (1.5).

Extrinsic rewards are considered to be the financial tangible rewards that are offered to workers, involving pay increments, bonuses, and other kind of benefits. They are referred to as extrinsic as they are external for completing the work and are controlled by other professionals and not employees (Malik et al., 2019). Extrinsic rewards are imperative when immediate participation is required from the people to integrate a change. In these consequences, extrinsic rewards are as initial tools to motivate employees for enhancing their performance and showing their contributions. However, these kinds of rewards have limited effect over time if they do not improve appropriately (Malek et al., 2020). For example, once the pay of an employee has been increased in a year, it is more likely that the employee will not be motivated if the pay will not be elevated further. This indicates that they may not lead to a sustained increase in organisational performance. On the other hand, extrinsic rewards are helpful in aligning the behaviours to cultural values, but do not establish a norm (Madhani et al., 2021).

Moreover, there are intrinsic rewards that are considered to be psychological rewards and are accomplished by employees on doing something meaningful. They are found to be internal to the organisation as they are significantly depended on employees’ efforts and abilities. This indicates that reward level is largely influenced by the individual performance of a worker. Intrinsic rewards are important tools to create sustained change in behaviours among workers and result a better performance. They can be developed by permitting the workers to do more and managing different things on their own by being improvising, innovative and critical thinker. Additionally, intrinsic reward system motivates the employees to work hard and show their better contribution as it will lead to an emotional reaction (Asaari et al., 2019).

• An assessment of the effectiveness of performance review meetings and 360-degree feedback as approaches to performance management, including a review of the role that the people practice professionals within Home International can take to support you as a line manager, to ensure consistent and appropriate reward judgements are made (3.1).

Performance review meeting are considered to be formalised assessments in which the evaluation of work performance was carried out of employees along with the discussion of their strengths, weaknesses, candid feedback and goals setting for the year. Performance review meetings are the best opportunities that provide wide range of benefits for both organisations and employees by sharing their concerns and opinions. They are effective in understanding what things are doing well in the organisation and what need to be altered. Performance reviews meetings are effective to evaluate the performance, employee development and set personal development goals. These kinds of meetings are also beneficial in promoting the two-way communication among managers and employees. Hence, it might be helpful in the Home International to carry out performance review meetings in order to determine the reasons that why turnover rate is high and what could be done to improve the reward system (Mengistu et al., 2014).

On the other hand, for the performance management, the 360-degree feedback can also be used which is found to be an employee appraisal framework for understanding the employee performance as well as perception of both external and internal stakeholders with the help of different appraisal systems. The system of 360-degree feedback is not only helpful to employees and it is also effective in acknowledging how their weaknesses are affecting different business activities. It has been revealed that when 360-degree feedback are appropriately used, it can result in reducing the employee turnover rate and elevating employee retention which is ultimate requirement of Home International, as well as helping the line manager to make better reward judgements (Fleenor et al., 2019).

• An explanation as to how line managers can make reward judgements based on organisational approaches to reward (3.3).

Line managers can make reward judgments based on organisational approaches to reward in different ways. Firstly, they can be actively engaged in a periodical or annual appraisals where can meet the employees to know their abilities as well as assess their performance (Ogbonnaya and Messersmith, 2019). They can also gather data about employees with the help of different resources and tools that are related to performance assessment. For example, they can assess employee performance by using Key performance indicators which measure employee productivity toward the planned goals. They can utilise other tools also, involving 360-degree feedback, which permits a more comprehensive and holistic review of employee performance (Ramdhani et al., 2021). They can also provide feedback to the employees routinely which is crucial to offer relevant rewards judgments (Fleenor et al., 2020). Line managers are also obliged to provide coaching, establishing, and planning goals for the employees. Subsequently, through their records and close relationship with employees, they can effectively determine how to reward their employees. However, during this process, employers should have a trusting relationship with the line managers as they are closer to the workers as compared to the senior managers (Butt and Ahmad, 2019)

• A review of how people practice professionals can support line managers to make consistent and appropriate reward judgements. (3.2)

It has been observed that employers often experience challenges to manage the pay of their employees. Conventionally, they make efforts to attract, retain and motivate employees so as to meet the requirements of the employers. However, in order to do so, they are dependent on the line managers for providing the judgements on the employee’s performance and abilities. For the line managers to effectively accomplish their goals, they require a support from the people professionals for appropriate reward judgment. For instance, line manager should be offered necessary training for managing the workforce, developing effective communication skills, dealing with complicated issues and making appropriate decisions. Additionally, they need a suitable environment from the senior management that facilitates the culture of reward among employees (Gallardo-Gallardo et al., 2020).

Task Two: Briefing Paper to Inform Future Reward Approaches at Home International

• An assessment of industrial trends and sector profiles linked to common reward packages and levels of business activity relating to the context of reward environment within Home International

The main aim of any kind reward is to boost business activity and performance. Rewards are found to be well developed strategies that are developed to enhance the working condition and business output fully. Generally, reward management is related to the implementation of policies or strategies for helping to reward everyone in the organisation justly and fairly. When employees are rewarded for their efforts and good work, they feel motivated as well as valued which can increase the success and productivity of Home International (Ali and Anwar, 2021). The business productivity is assessed via the daily targets provided to each employee. These targets are often accomplished with the help of normal pay without any reward system being integrated. However, when the reward system is introduced in any business, it is expected that output will be improved with time. The employee’s confidence is normally boosted by intrinsic rewards, leading to improved work quantities and qualities. Under the impact of intrinsic rewards, it is expected from organisation that better services and goods will be offered to employees. Through the introduction of extrinsic rewards, it is often ensured the optimisation of quantity. When each employee gets a reward in accomplishing a certain target, all other employees work hard to do the same no matter what the situation is (Zafar et al., 2020). With the help of this reward strategy, the quality is not much improved; however, all the employees compete for the numbers that might the ruin the business in future. As a result, it might be much better for the Home International to integrate both kinds of rewards which lead to superior output. It is the responsibility of the management to select the reward strategies that suit both organisation and employees and not just one side. When accomplished appropriately, the outcomes will lead the business of Home International to great heights and increase the turnover rates as well.

• An evaluation of how unemployment and payroll data can be used by Home International to develop insight into benchmarking reward data.

It is crucial for the companies to compare their general performance to that of their competitors. This task can only be completed through benchmarking in which company is compared to that of other companies. Benchmarks are very significant when the data set involves sufficient data for producing functional peer groups on the basis of organisational characteristics (Xian et al., 2020). When benchmarking is completed, enough data can be collected from all sectors that makes sures that appropriate information is accessible. This data then becomes significant to compare data from other companies and establish the proper strategies for helping the company to take right decisions. The most appropriate way to utilise unemployment and payroll data is through the option of competitive benchmarking process. Data related to competitive benchmarking is the most difficult to collect as it involves different activities of competitive firms for analysis, assessment, and evaluation. Conventionally, competitive benchmarking research methods involve causal communication through contacts from other organisations along with formal interviews (Rudeloff et al., 2021).

Another way for the application of unemployment and payroll data is to develop a standard for remuneration. It is important to ensure that wages are competitive enough within labour market or at least are the reflective of employee value to the company. Considering a wider picture that how unemployment and payroll data impact a business might be also beneficial. It may be easy to determine the areas for improvements in hiring processes as well as staff development by making a comparison in unemployment rate (Mihaela et al., 2020). The manager can develop their own insights regarding incentive policies and practices of benchmarking in Home International through this data evaluation. Data regarding the payroll and unemployment is imperative to evaluate the condition of labour region in a specific region. In addition, analysing the age of departing worker, it may be effective to determine the skill gaps that need to be filled through training and recruitment (Merkel, Ruokolainen, and Holman, 2019). The influence of job status on payroll and unemployment data is other important aspect that needs to be considered.

• An example of a reward package that you have created for Home International. This should include:

An appropriate reward package supported with benchmarking data

A job evaluation scheme

The market rates relevant to the roles within Home International.

Appropriate Reward Package

It is not possible for overstating the importance of wages and its benefits to attract, retain, and recruit employees. There are a wide range of ways present to consider and reward the employees. Each option has its own benefits and limitations. The most successful option that effectively support the business planning is the fair and consistence incentive programmes (Adekoya et al., 2018). It has been mentioned that employee reactions can alter based on the circumstances surrounding the payment and its kind. It discusses the organisation and pay scale. Both financial bonuses and legal issues are present in the UK. The importance of personnel issues is then examined, generally compensation and non-cash incentives. Recognitive programmes from reward programmes must be distinguished by the business owner or manager for increasing the effectiveness of each programme (Mabaso and Dlamini, 2018).

Additionally, companies and associations should provide their workers an absolute structure for compensation or other kind of benefits. This involves monetary as well as other kinds of compensation (Vizano et al., 2021).  As a measure to collect money to provide people and organisations who is successful to achieve specific aims, objectives and other requirements, there are many associations who provide their representatives with full compensation, involving attractive reward systems in combination with monetary benefits. They offer effective opportunities for professional improvement as well as growth and motivate agent for appropriate engagement and working on a reward basis. Following is some of examples of reward system to come up with original ideas.

Monetary Rewards: Along with the regular pay, the organisation should involve a comprehensive remuneration system that involves bonuses, such as regular incentives, overtime pay, and different financial rewards.

Personal Benefits: With the help of a robust reward system, personal benefits, involving medical allowance and paid leaves, develop a good culture among employees. Recognising the employee welfare programmes as effective strategies that can help the workforce to strike an ideal balance between fun and business activities.

Enhancements to the Open Door: A potent and flexible reward scheme can improve an employee’s career prospects. Doors Individuals and entire departments can grow in their careers by going to events like preparation sessions for certificate programmes or other opportunities for professional development.

Acknowledgments: Incentives such as office grants and monthly ambassador grants. This is a great complement to the overall system of control and compensation that encourages agent cooperation and a sense of teamwork at work.

Job Evaluation

A workflow involving to plan system provides a methodical and organised way for the assessment of relative worth of group work.

What to do following a decision. Employers must initially assess the goals, risks, expenses, and scope of projects.

The business operations must be patented that involves consultant of other external parties inside the organisation.

Performance procedures for evaluation should not be biased as well as should not eliminate significant elements involving the authority for denying requests for equal payment.

• An explanation as to the legal requirements in relation to minimum pay and working hours that might impact Home International’s reward practice (2.4).

Working hours are the amount of time a worker gives to the organisation or completing a task while the minimum wage is the quantity of money that is offered by organisation to their employees for the completion of work in a specific amount of time. There are numerous organisations, such as government, pay councils, and labour or tribunal court tribunals, set minimum range of wages as well as working hours for the employees (Venn et al., 2009).

The establishment of minimum wage system helps the employers to prevent from employee exploitation. It is helpful for the employers by simply paying employees for the completed work in a specific period of time. Planning minimum wages as well as working hours may have negatively influence incentive structure of company, causing employees to only be paid what they have worked. As most organisations strictly adhere to the regulations controlling the work environment, it avoids employees from achieving bonuses for the efforts and dedication. As bonuses and overtime compensation are inhibited, one advantage of the legal requirements is that it decreases the amount the money spent by manufacturing companies on labour (Hoang et al., 2022).

 

 

References

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