Types of reward to develop a reward system

1. Reward SystemReward System
Rewards and reward systems may be designed to:Rewards and reward systems may be designed to:
11 attract suitable employees into the organization, especiallyattract suitable employees into the organization, especially
when particular skills are scarcewhen particular skills are scarce
22 retain valued employeesretain valued employees
33 encourage employees to achieve their job objectivesencourage employees to achieve their job objectives
44 encourage employees to work the hours required by theencourage employees to work the hours required by the
organizationorganization
55 encourage the development of skillsencourage the development of skills
66 encourage flexible working and team-workencourage flexible working and team-work
77 recognize the contributions people make to therecognize the contributions people make to the
organizationorganization
88 align the interests of employees with the success of thealign the interests of employees with the success of the
companycompany..

2. Reward SystemReward System
Relevant theoryRelevant theory
•Expectancy theoryExpectancy theory
•HerzbergHerzberg
•MaslowMaslow
•Wide/Narrow approach (PerformanceWide/Narrow approach (Performance
Related Payment)Related Payment)