Partha Das

Why Employee Reward Matters for a Business? | Partha Das | Chief People Officer | Manipal Hospitals

Partha DasIn the intricate tapestry of business, people are the driving force. The success narrative of any Organisation hinges on the individuals who consistently push the boundaries, whether in strategy formulation or execution. Remarkable companies and leaders seamlessly intertwine accountability and rewards into the fabric of their employees’ lives, shaping a culture that yields dividends for all.

The leadership team charts the course, assembling the right talent to breathe life into the strategy through flawless execution. Once the ideal resources are on board, the subsequent crucial step is aligning their individual goals with the overarching Organisational objectives, followed by the meticulous management of their performance. The final touch to this, is the critical stage of “Reward & Recognition,” that significantly contributes to employee motivation and engagement.

A reward is more than a simple acknowledgment; it is a tangible acknowledgment of exceptional contributions made in achieving Organisational goals. It serves as a motivator, fuelling the drive to achieve even more.

• The determination of rewards is intricately tied to a robust and equitable performance appraisal mechanism. It’s not uncommon to observe heightened rewards for individuals who pose a flight risk, often high performers indispensable to the Organisation.

• Equality is the second foundational principle of rewards, where individuals within the same band receive identical rewards. Performance and ability should be the primary considerations, then mere seniority.

• The third mechanism hinges on individuals contributing to Organisational performance, earning additional incentives based on merit.

The symbiotic relationship between business performance and the quality of performance management is evident. The interplay between individual and Organisational performance directly influences profitability. This profit is ought to be shared with individuals in the form of tangible rewards, be it through salary increments, promotions, incentives, recognition, and more.

Rewards fall into two distinct categories: “intrinsic” and “extrinsic.” Intrinsic rewards are self-administered, stemming from the inherent satisfaction derived from engaging in the job itself. Job satisfaction, personal growth, and learning and development are examples of intrinsic rewards.

Extrinsic rewards, on the other hand, are administered externally, typically by the employer. Compensation, benefits, promotions, recognitions, and praise are all examples of extrinsic rewards.

It is apparent that individuals who are self-motivated and deeply engaged in their tasks find intrinsic rewards in the job itself. This self-rewarding mechanism, often as simple as a mental pat on the back, propels them to deliver consistently outstanding results.

Is Money, a Motivation?

The age-old question of whether money is the primary motivator sparks considerable debate.

While money is undeniably a motivator, its effectiveness varies. Its strength as a motivator is contingent upon the trust levels between managers and subordinates, the measurement of individual performance, and the implementation of higher pay rewards for high performers.

Nevertheless, what matters most is the acknowledgment of employees for their selfless behavioural attributes displayed during job accomplishment. Leadership, strategy, creativity, and other intrinsic qualities in individuals become pivotal. These individuals, being self-motivated, highly engaged, and results-oriented, serve as instrumental assets for Organisational performance.

Performance-Based Rewards emerge as the outcome of a robust and impartial performance management system, a cornerstone of any Talent Management program. Maximizing performance accountability yields overall improvements in the ecosystem. There is a plethora of levers to pull in the realm of rewards, including salary adjustments, ESOPs, bonuses, incentives linked to profit-sharing, fringe benefits, promotions, special projects, job rotations, higher education programs, and coaching/mentoring. Remaining mindful and proactive in navigating the intricate interplay between rewards and motivation is key to celebrating the success of the Organisation.