WHY REWARD MANAGEMENT IS IMPORTANT
Basically, employee reward is what the company gives to its employees.Employee reward which include in labor costs can account for as much as 70% of total business costs, include employee wages, benefits, payroll or other related taxes (Paycor, 2020). Labor cost percentage range between 20 to 35 percent of gross sales. Percentages vary from industry to industry (ExcelDataPro, 2020).
What is The Objectives of Reward Management?
The Objective of an effective Reward Management is to pay the right people, with the right amounts, for the right reasons.More specific, the objectives of Reward Management are to:
- Attract;
- Retain;
- Motivate;
- Reward.
So, The Aims of “Reward Management”
- Align reward practices with business goals and employee values.
- Reward the right things to convey the right message about what is important in the company.
- Maintain internal equity.
- Facilitate the attraction and retention of the skilled and competent people the organization needs.
- One of the company’s effort to gain employees commitment and engagement.
- Support performance based culture.
- Align reward practices with business goals and employee values.
