The Effect of Employee Engagement In Reward Systems and Performance Management
The success of any organization rests on the strategic management of its employees. It’s vital for an organization to attract, motivate and retain the best talent available to achieve and sustain a long-term competitive advantage. To achieve this the Human Resources Department must design a performance management system that not only links employee performance outcomes and expectations to its strategic goals, but also uses the system as a tool to improve employee productivity as well as recognizing employee accomplishments, all while emphasizing the employee’s role in the process.
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It’s assigning value to those rewards that will lead to program effectiveness, motivation, and subsequent employee success. Reward-driven motivation deals with identifying a particular reward structure (usually monetary) and building it into a desirable action (Carter, 2013).
Bauer and Erdogan (2010) define motivation as a goal directed behavior resulting from the drive to achieve a goal or certain performance. In the workplace, motivation for labor is more than just monetary payment; it’s an individual and diverse emotional commitment to the organization. This commitment is fueled by the extent in which the employee derives enjoyment, meaning, pride or inspiration for accomplishing goals and achievements. People work to obtain something else in their lives and they want to believe they are contributing to something larger than themselves. Personal job satisfaction is an organizational attitude that affects workplace behavior. How people feel about the work they do impacts productivity and morale. If the employees perceive the reward system as inadequate, bias towards program effectiveness develops as well as deviant workplace behavior which can accompany increased absenteeism and high turnover rates (Kobussin, Kalagnanam, and Vaidyanathan, 2014). To circumvent this perception the employee must become involved in designing their individual pay/reward system to best fit their needs and desires. Once the system is designed to an acceptable level the employee becomes more committed to productive behavior and subsequent success.
In today’s competitive marketplace flexible and cafeteria-style benefit programs are commonly utilized because organizations get the best value for their money by giving employees the power to choose their desired rewards. These benefit programs, along with data collected during the job interview and performance appraisal, are indicative of the required criteria needed for discovering what makes a person “tick”. Employee attitude or climate surveys can also be administered during the appraisal period for gathering additional employee feedback and for evaluating the reward system currently in operation.
For a reward system to be effective, it has to be both understood and designed in ways that lead to acceptance and motivation....