1.What is important when introducing a reward system for staff? Purpose of the reward system, Types of reward offered
At the first stage, the purpose of the reward system should be determined. Is it to show appreciation for staff’s contribution to the firm? Or is it an effort to enhance staff productivity and performance? Or is it a way to reinforce loyalty and commitment to the company? Whatever the aim, it must be clarified before introducing the reward system.
After purpose, we should not ignore the types of reward offered. Some companies offer cash prizes and salary increases in addition to the usual promotions. Still others provide staff with free holidays or useful training programs. And more sophisticated firms often supplement these with some form of non-material recognition, say, an ‘Employee of the Month’, or ‘Employee of the Year’ award certificate.
2.What is important when aiming to reduce staff turnover? Financial incentives, Career structure
To begin with, we should not underestimate the importance of financial incentives. Not just salary. We should not ignore other financial rewards in the form of fringe benefits. Some companies offer housing allowance, car allowance, children’s education allowance in addition to salaries. Still others provide staff with free health club and cafeteria. And high tech firms often supplement salaries with stock options.
Last but not least, career structure is no small factor either. A firm with a flexible career structure allows staff members to work his way to the top of the corporate ladder. That will give employees not only enough room for personal growth, but also better financial rewards. As a result, employees in such companies are more likely to achieve a better level of job satisfaction.
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