Running Head EMPLOYEE REWARD SYSTEM

Employee Reward System



Employee Reward System

Introduction

Understanding what motivates employees-not what makes them ''happy'', but what makes them come to a company, stay and invest their talents in the business-is critical to developing an effective people strategy. Likewise, the ongoing effectiveness of specific reward systems in supporting that strategy depends on understanding which reward elements have the greatest impact on the people who are most important to the company's success.

 And the question is, ''Do incentives and rewards work?'' Do incentives make people more efficient and effective? Do incentives like paid holidays motivate and retain employees? My view is that it does, but only for short term periods. (www.e-reward.co.uk / Alfie Kohn;1998). It produces temporary compliance. Because motivation is based upon the intrinsic and extrinsic rewards the employees receive. And there is a hierarchy of human needs, one after another. (A.Maslow /2004; Handouts MAP). Rewards do not create an enduring commitment to work but temporarily, change employee's short term behaviour. However, it is required to know more about financial and non-financial rewards and their role in motivating and retaining employees. If the employees are motivated to work that means they like their work and it may be obvious that they will retain in their job.

Organisation and employee Rewards

 I have selected an ongoing work situation in one of the professional hair salons. The salon offers standard hair cutting services, hair perming, hair straightening, hair colouring and also special hair styling require for special occasions. (Personal search)

 

Job titles and the rewards linked

There are 5 stylists and 3 shampoo girls in the salon. Of the 5 stylists, 3 are professional stylists. One of the professional stylists Alan is also the salon leader.

 

Financial Rewards

 4 of the stylists excluding Alan are each paid the similar basic salary of approx. £600 per week. Not very high for their job titles…..Alan is paid slightly above £600. In addition to the basic pay, the stylists are paid an additional commission of approx 30% on the cost of their customer's visit. As one of the employees put it ''30% of the price of my customer's coiffure.'' The commission for the creative stylists and professional's are similar but the professional stylists are able to command a higher rate on hair cuts given to customers only charge for additional hair service like hair treatment, hair colouring are the same across the board.

The shampoo girls are paid much less than the basic pay of the stylists and this is their only source of financial reward as they are not able to command commission. However, they get some tips from some of their customers' which is also an additional income / financial reward. Besides, they are doing on the job training and are actually gaining the indirect non-financial reward of gaining some experience and the opportunity to work on customer's hair as well.

 

Money In Attracting, Motivating And Retaining

Certainly, people/stylists need money and therefore want money. While money can motivate, the stark reality is that cash is not the only motivator in ...