Reward

Reward is something that is usually given to someone in return for something they have done such as commitments. Rewards are also be given to motivate staff, whereas it will increase the production which than increased profit to the business. A good definition by Martin et al “A reward system consists of financial rewards and employee benefits, which together comprises total remuneration”. This is a well explained definition.

Co-operative reward strategy

As my dad works for the Co-operative I have heard from him the rewards he gets for working for them. The contribution their employees make to success of their business is highly valued. Some of the rewards and benefits co-operative offers their employees are:

§  A competitive salary

§  Holiday entitlement of up to 31 days

§  An Award winning pension scheme

§  Tax and NIC advantageous salary sacrifice schemes

§  An employee Assistance Programme

For the employees who are also member of the group they are entitled for me benefits which they offer such as:

§  Employee discount (10% from the Co-operative food, 30% on legal advice from the co-operative, 25% off on home insurance with the Co-operative)

§  Employee member dividend is an extra share of the profits especially for employees in addition to the normal consumer share.

§  Voluntary benefits, which provides offers and discounts on everything.

They also have flexible working hours, if in case the morning shift has to be changed due to some appointment it couldn’t be done without any issue.

Should the Chief Executives receive large bonuses?

From my point of view I believe that they are not entitled to receive the bonuses though they have underperformed, which has affected the company. Below you can see some argument which was for and against, whether they should give the rewards to Chief Executives:

For:

§  They have more responsibility and still are doing their job, which is stressful, hard. Therefore they deserve the large bonus.

§  The Chief Executives has put so much hard work to gain the qualification and experience, which is needed to get that place in the organisation, therefore should receive the large bonus.

§  If they weren’t rewarded with the large bonus they would get de-motivated, which could lead the Chief Executive to underperform even more

Against:

§  If they get rewarded with the large bonus, they would perform the same next time as they know whether they performed well or not, they still receive their reward. Therefore the Chief executive shouldn’t be rewarded with that large bonus.

§  They haven’t met the standard, therefore simple they shouldn’t receive the bonus just like everyone else.

§  Bonuses are being rewarded for achieving a certain task, therefore this clearly states that Executive didn’t. This means no bonus for them.

In conclusion, I have learnt that companies are rewarding their employees to motivate them to work even better in which case the staff performance gets better for which there will more productivity.

Reference:

Anon. (2011). Rewards. Available: http://www.co-operative.coop/corporate/careers/Rewards/. Last accessed 30th Apr 2011

Mullins, L. ( 2010) Management & Organisational Behaviour : ninth edition.London: Person Education Limited.