Definition of Reward Management
Reward management is a Human Resource Development practice that rewards employees for their compliance with organizational norms, performance, consistency and various other metrics.
Rewards can be given in different forms. Simple praise from the senior or the management helps to boost morale. It can be written or oral, or bot. A reward can be given in the form of a more challenging task to utilize your skills even more. Assigning a more challenging task is symbolic of the faith on the employee by the management or seniors. Promotion or raise can also be a reward. Sometimes, training on the desired skill is a reward as well.
When reward works best
Reward works best when it is recognized publicly, by peers, friends, family, etc. This creates a sense of achievement and sense of belongingness to the reward. It is not just beneficial for retaining the best of the organization’s talent, it also serves as the motivation and will to join the workforce among the talents who are seeking out new jobs or a job change. This is one of the best ways to attract the best talents in the industry.
Also, apart from public display and celebration, keeping a well-maintained record of rewards helps much. If an employee wants to show the reward to someone at random, he/she might not be having the trophy or the footage from the ceremony but he/she can show the records presented on the organization’s website or social handles. This is really a confidence booster with a happy feeling.
Types of Reward
Intrinsic Reward
These rewards are non-monetary. These serve the purpose of motivating employees using their desire to be recognized as an important individual. To be precise, it is based on Self Esteem part of Maslow’s hierarchy of needs.
Extrinsic Reward
These rewards, mostly monetary, are measurable. This includes raise, promotion, higher roles, incentives, additional perks, etc.