Human resource has various components, including rewards, compensation, downsizing, and layoffs. However, one of the concepts that I believe is the backbone of an organization is rewards. Rewards denote any incentive plan instituted in an organization to help reinforce desirable behaviors among workers or employees. Rewards take different forms and may be in the form of money or other forms such as providing special services or providing a favorable work environment that can influence them to work towards achieving organizational objectives (Nnaji-Ihedinmah et al., 2020). Most organizations that adopt different reward systems strive to attract, maintain and retain efficiency among employees by ensuring that they are constantly motivated.
Personal Experience related to rewards
Working in the HR department has always fascinated me since it helps reveal how incorporating different strategies can either promote or reduce the performance of an organization. During one of the summer holidays, I secured an offer to work in the sales department of an organization. Having been new in the organization, I did not attach importance to rewards since all I needed was money. However, after two months of working, I was not given my pay, and the management insisted that I would be paid. Despite tirelessly working to meet the organization’s sales target, they failed to motivate me, an aspect that discouraged me from working. I had to quit and moved to a rival company that treated me fairly. After meeting the sales target, the company would reward me with a bonus and even take the whole team on vacation.
By using this example, I believe rewards in an organization are key since they help maintain productivity and employee performance. When an organization uses rewards, it helps appreciate them, which motivates them to work harder. However, if employees in an organization are not motivated, it can lead to organizational failure (Noor et al., 2020). I believe that rewards in an organization also help in improving attendance and retention. A motivated employee will always have a reason to come to work. Additionally, using rewards in an organization reduces the employee’s intentions to quit working in an organization. These factors combined contribute to an employee’s commitment to an organization (Noor et al., 2020). Although most organizations may find it difficult to reward their employees, adopting simple strategies such as recognizing top performers, giving fair promotions, and giving monetary awards may serve as a basis for improved performance.
Nnaji-Ihedinmah, N. C., & Egbunike, F. C. (2015). Effect of rewards on employee performance in organizations: a study of selected commercial banks in Awka metropolis. European Journal of Business and Management, 7(4), 80-88.
Noor, Z., Nayaz, N., Solanki, V., Manoj, A., & Sharma, A. (2020). Impact of Rewards System on Employee Motivation: A Study of a Manufacturing Firm in Oman. International Journal of Business and Management Future, 4(2), 6-16.