Employee Reward And Resourcing Module_HRM Essay

Employee Reward And Resourcing Module_HRM - Essay Example There are two fundamental reward strategies; pay-related reward policy for the private sector and fixed pay structure for the public sector. These two forms have been critically evaluated. Employee resourcing measures the recruitment, retention and transfer of employees. Its strategic and operational components are Human Resource Planning, Resourcing Plans, Retention Strategy, Flexibility Strategy and Talent Management Strategy. A relation is found between employee reward and resourcing; the higher the reward, the higher the ease of recruitment, retention and transfer of employees. However, the report by CBI cites pay as one of the least related determinants of resourcing. Instead, it identifies the ability of the management staff and communications pertaining to the value of rewards achieved as the main factors influencing resourcing of human capital. As conclusion, some key recommendations are given that would lead to a more efficient working of the public sector and reduce government deficit. Introduction The world believes in the principle of ‘punishment for failures and rewards for achievements’. With the biggest companies going global, a need has been felt to recruit, retain and transfer human resources of the companies, i.e. employees, to various other sites of business in order to expand the scope of business and achieve the maximum corporate dividends. However, research has found that companies are not able to handle this effectively. As a way out of this problem, companies, now, offer higher monetary rewards to their employees as compensation, benefits, bonuses or incentives. But in order to decide standard policies on granting rewards, reward strategies have to be decided. A detailed description on these lines has been provided in the following paragraphs and this subject has been studied, analyzed and criticized in view of the report â€Å"For What it’s Worth?† composed by the CBI. Understanding Organizational Reward Strategy and its Components Mean ing of Reward Strategy â€Å"Reward Strategy is a declaration of intent which defines what the organization wants to do in the longer term to develop and implement reward policies, practices and processes which will further the achievements of its business goals and meet the needs of its stake-holders† (Armstrong, 2009, p.746). It forms a rough framework for reward policies by setting direction and purposes for them. A reward strategy takes into account the needs of the employees and the organization. It develops the values of an organization and sets the basis on which people are to be valued and thus, rewarded. Components of a Reward Strategy There are various components of Reward Strategy and which are interrelated. The important ones have been stated as follows. Non-Financial Rewards: Rewards are not always monetary. Sometimes, they may satisfy a person’s need for influence and reputation. Non-financial rewards may be in the form of recognition, responsibility, ach ievement or growth. For example, an employee may be receiving promotion or awards for attaining a high standard in his field of work. Job-Evaluation: It is a process which involves the identification of particular jobs and the corresponding employees in those jobs and a standard scheme of evaluation is developed and finally, a pay structure is decided upon. (Armstrong and Baron, 2002, p.30) Base Pay: It is the fixed income of the