Compensation and Benefits - Financial Reward System - Term Paper Example

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This paper is aimed at developing a financial reward system of a marketing firm with a total strength of 75 to 100 people. The paper will include all the theoretical and legal perspectives regarding job evaluation, wage surveys, incentives, pay equity, benefits and compensation strategy…
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Compensation and Benefits - Financial Reward System
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Download file to see previous pages This research will begin with the statement that Compensation and Benefits in financial reward system are very important for organizations because it helps in the systematic organization of tasks and human resources with the purpose of attaining sustainable growth of the organization. Employees’ performance and motivation are depended on the financial as well as non-financial rewards provided by the organization and thus it can be stated as one of the important factors to boost the performance of the employees. An effective financial reward system should consider the organizational structure, its culture along with the need for affiliation by the employees, rewarding employees financially. It should also consider that each person working in the organization receives appropriate financial recognition for their i­­ndividual as well as group contributions in the organizational performance. Job evaluation is a system or process in which the contribution of an employee is determined with due significance to his/ her position in an organization. A good financial reward system enables the organization’s employees to receive financial recognition for their contribution and job role in the organization and thus can create a positive impact on the workforce. It is worth mentioning that the reward system should be dealt with effectively to have a positive impact on the employees. The output of job evaluation is used in various fields of an organization such as for making remuneration system, human resource management, and for decision making in the payments of different job profiles. The flowchart in the figure represents a theoretical perspective regarding job evaluation. Initially, documentation of position should be performed to view the complete picture of each position in the organization. Determination of remuneration range considering the market competitiveness is another important step in job evaluation process. The performance appraisal system should be well- designed to avoid inequality among the employees. Then a review should be conducted to check the above steps and identify if the goals are achieved within time limits followed by the final determination of the reward system. The job evaluation should be done fairly and there should be no discrimination on the ground of sex or other attributes. There should be equal pay for both male and female. Equal pay for the work of equal value also should be considered in order to maintain sustainability in the organization. Wage survey is a method of collecting information about workers’ remuneration for analysis of existing compensation system which is used to determine the remuneration of employees. Wages are basically paid on daily basis to the workers in any manufacturing or production unit. According to the ‘Fair Labor Standards Act’ of 1939, wages are paid on the basis of hours worked. ...Download file to see next pagesRead More
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