7RWM Reward Management
The 7RWM reward management module explains how HR professionals can create a rewarding environment that aligns with the organisation’s goals. The unit assists HR experts in developing the appropriate rewarding strategies and policies that are important in keeping employees working in an organisation. In this regard, learners enrolled in the unit are expected to learn the industrial and market trends influencing decision-making on employee-rewarding issues. In addition, the students will learn about the following topics while studying the unit, which is thought to be very important in developing an understanding of the reward management module.
Tools for analysing reward policies in organisations
PESTLE and SWOT analysis tools assist in examining the internal and external forces influencing organisational decisions regarding employee compensation. These tools serve as the foundation for identifying external factors based on external analysis of the market and industry in which the organisation operates. HR professionals can identify trends and, as a result, develop the appropriate policies for determining the rewarding strategies to be implemented. Students should learn how to use analysis tools effectively to identify factors that influence decisions made when developing reward strategies for the organisation. To improve good decision making in terms of rewards, students should learn to relate the identified factors to cases within the organisation.
Reward intelligence
The information obtained by the HR professional on reward-related matters is referred to as reward intelligence. HR students should learn that surveys, market intelligence, and advertisements from other businesses are the most important ways to gather reward intelligence. These are regarded as reward intelligence drivers, assisting professionals in making decisions about pay, compensation, and benefits to employees (CIPD, 2015).
Principles of total rewards
Students taking the unit learn about the value of employees who work in an organisation by evaluating the organisation’s culture and developing the right reward strategies that will benefit the employees as individuals while working in teams and the organisation as a whole. Total rewards ensure that employees receive both monetary and non-monetary compensation. Furthermore, workforce preference is heavily weighted in determining which reward programs should be offered to employees. There is also the issue of pay for performance, in which employees are rewarded based on their performance. In this regard, students must understand how they should decide on the appropriate total reward packages to be given to employees. The organisation’s type should influence this and the reward strategies developed (Ekwochi, Eneh, and Orga, 2017).
Fairness, equity, consistency, and transparency in rewards
Students taking this course should understand that their responsibility as HR professionals is to develop policies that promote fairness and equity in employee compensation. Being fair, consistent, and transparent, according to Armstrong (2009), aids HR professionals identify the essential pillars of reward management. This is significant because it aids in reinforcing organisational values to employees and other organisational stakeholders. Therefore, students must understand the organisation’s reward objectives to ensure they learn how to make every employee feel valued and compensated appropriately for their contributions. Organisations that promote fairness, equality, consistency, and transparency in compensating and rewarding their employees experience high levels of employee satisfaction and morale, which translates to good employee performance.
Students taking this course should learn the differences between intrinsic and extrinsic rewards as organisations and HR experts promote fairness and transparency. Intrinsic rewards are those that are internal to an individual and provide personal fulfilment and enjoyment. Extrinsic rewards are provided by employers and are not provided by individuals. Both are thought to be forms of employee motivation. The unit teaches students about employee rights, and as a result, they are more aware of their rights when it comes to being rewarded at work.
Contribution of line managers to reward decision making
Line managers must ensure that they sway HR professionals’ decisions on what and how much to pay their employees. This is significant because line managers are the people who work directly with employees and are aware of the contributions that employees make to the organisation. This is more applicable in performance-based rewards, where line managers are responsible for measuring employee performance. Line managers should be given the authority to evaluate the most critical decisions regarding employee compensation. For example, organisations can determine which compensation packages improve employee satisfaction through the influence of their line managers. Students taking this course should realise that HR experts do not hold all the power and influence when making employees pay and benefit. Instead, managers who are directly responsible for the employee’s well-being must also make such decisions.
Learning outcomes
By completing this course, learners should;
- Having a clear understanding of the factors influencing reward decisions in each business unit and knowing the context of reward management
- Understand how to use reward intelligence to develop reward policies and principles for use within the organisation
- Know what fairness, equity, consistency, and transparency mean regarding rewarding employees in the workplace
- Be able to describe your organisation’s reward policy initiatives and how they are implemented now how line managers contribute to the decision-making process concerning rewards.
Wrap Up
People interested in developing their HR careers should apply to the reward management unit. In order to improve decision-making processes and develop effective strategies and policies, the unit provides information effectively in helping people devise the best reward strategies for employees within the company. As a result of completing the unit, students will have gained knowledge and more skills to prepare them to take appropriate actions and make informed decisions about reward management. In addition, the HR Unit determines the interactions between the HR and organisational line managers to assess each’s the role within the overall organisation.
