Reward Managment Assignment Example | Topics and Well Written Essays - 2500 words

Reward Managment - Assignment Example To motivate employees, Armstrong and Baron (2004) argue that the director needs to introduce a contingent pay. This would entail establishing performance objectives for each employee and compensating them depending on the achievement of the objectives. This implies that employees will receive for instance 15% of basic pay as a contingent pay. In this way, the employees will not only be motivated but also they will improve their performance with an aim of getting promotion and receiving high contingency pay. Additionally, I suggest that the director introduces annual cash bonuses. This would entail evaluation of the bank employees by the mangers as well as customers followed by rewarding the high performing workers with cash bonuses that would be given during end of year parties. In the same way, it is essential for the director to establish a ratio that would be adopted in rewarding the employees by use of company shares. For example, during issue of shares, employees who have served the company for a long time might be given 10 more shares for every 100 shares they have (Perkins and White, 2010). In the same way, the bank can adopt profit sharing plan as a reward. However, this should involve prior communication with the employees on the ramifications of economic downturn on the profit sharing plan (Armstrong, 2002). In this way, the resentment and the backlash that would demotivate the employees will be highly avoided. Flexible benefits policy For the purpose of making the employees feel part and parcel of the London and Provincial Bank as well as strengthening the employee-employer relationship, a flexible benefit policy should be introduced. This way,... This paper approves that despite the fact that all rewards are geared towards improving the performance of the employees and increasing the profitability of the bank, Thorpe and Gill argues that it is vital to sequence the manner in which they are implemented. Based on the resources that are at the exposure of the bank, it is my view that the bank first implements the non-financial rewards before adopting the financial rewards. This essay comes to the conclusion that attaining employee’s motivation is a goal of every firm either operating locally or internationally. Financial rewards are not the only factors that motivate employees. To ensure that workers are part and parcel of the company, firm such as London and Provincial Bank are now focused at looking at employees at an individual level. As a major step, the company has established the post of Director of Rewards an indication that the bank is focused at retaining a productive workforce to outdo its competitors in the UK market. Based on the Towers Perrin model, the director is focused at implementing a new rewarding policy that will transform the current rewarding arrangements thus empowering the bank employees. Some of the major policies that I have suggested to the director to make his rewarding arrangements successful include effective pay structure and pay arrangements, flexible benefits policy, providing employees with total remuneration s tatements, sequencing the development of the rewards, involvement of human resources managers as well as bank auditors.